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Office REIT Picks Up Former Sony Facility in Central Texas

SAN ANTONIO-In its first expansion outside the Mid-Atlantic states, Corporate Office Properties Trust of Columbia, MD, pays Sony Electronics $30.5 million for a two-building, 470,000-sf complex here and promptly fills it with one of its core tenants.

By Brian K. Miller | Updated on March 31, 2005

SAN ANTONIO-Corporate Office Properties Trust has acquired a two-building, 470,000-sf manufacturing facility here from Sony Electronics for $30.5 million. The Columbia, MD-based REIT concurrently leased the building on a long-term basis to one of its top 20 tenants for use as office and R&D space.COPT’s portfolio is concentrated in Washington, DC, Pennsylvania and Virginia. The Texas acquisition marks the initiation of the company’s expansion strategy, which is to meet the space needs of its best clients outside the Mid-Atlantic states as well. COPT’s VP of finance Mary Fowler did not respond to an email query seeking additional detail regard to the company’s expansion strategy–such as what other markets its clients want it to expand into and at what pace–but the company definitely plans to gain a critical mass of space in San Antonio.Adjacent to the two-story former Sony complex, which is located at the intersection of Loop 410 and Military Drive, COPT acquired 15.7 acres and has put under contract another 27 acres of developable land. COPT expects to develop additional office buildings on the land “to accommodate the needs of other strategic tenants where synergistic opportunities exist.” Fowler could not say how much additional space could be developed on the land parcels. As of the end of the year, COPT’s entire operating portfolio — 12 million sf in 145 properties — was 94% occupied and located in four state: Maryland, Pennsylvania, New Jersey and Virginia. In addition, the company has another 1.4 million sf under construction in 11 properties and has 218 acres of land contiguous to certain of its operating properties that can hold another 3.6 million sf.

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