The sale was arranged by brokers at San Antonio-based Travis Commercial. Jeff Miller represented the seller and Mark Krenger and Chuck Ing represented the buyer. The investment group does not own other San Antonio properties.
Although the price was not disclosed, it was estimated to be more than $75 per sf. At $75 per sf, the building would have fetched $7.4 million. Its market value, assessed by the Bexar Central Appraisal District, is $7.7 million.
The nine-story, 98,630-sf building was built in 1978 and renovated in 1997. It is 94% occupied, Krenger tells GlobeSt.com. Tenants include Guaranty Bank, Chase Mortgage, Charles Schwab & Co. and HDR/Simpson Group. Travis Commercial is the building's property manager and leasing agent. Krenger says the San Antonio building market is active with a number of buildings on the block.
The city's office market had a 19.3% vacancy rate at the end of the second quarter, according to a report from Grubb & Ellis Co. The north-central submarket, the city's largest with 7.8 million sf, had a vacancy rate of 14.9%. Rents in the submarket averaged $20.61 per sf for class A space and $17.71 per sf for class B space.
The Grubb & Ellis report said opportunities to buy buildings in San Antonio are available for investors and users as they take advantage of new opportunities with the low interest rates. It highlighted Sooner Properties of San Antonio, which bought and occupied a 5,000-sf office building earlier this year.
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