SAN ANTONIO, TX-Thompson National Properties LLC has acquired Titan Building and Titan Plaza, a two-building office project totaling 131,619 square feet.
The Irvine, CA-based investor purchased the class B properties out of receivership from CW Capital for an undisclosed amount. The seller was represented by Alan Grilliette and Hale Umstattd of Transwestern. TNP represented itself in the transaction.
Situated on approximately 7.6 acres, Titan Building is a six-story, 103,395-square-foot building, and Titan Plaza is a single-story, 28,224-square-foot building. Titan Building is 83% leased, while Titan Plaza is 44% leased.
Built in 1983, the property was significantly renovated with Class A finishes in 2001. Titan Building is located at 2700 NE Loop 410 and Titan Plaza is located at 8200 Perrin Beitel.
This is the second time that TNP executives have been involved with the Titan properties. In 2002, Triple Net Properties acquired the properties for $9.167 million.
At the time, several members of TNP management team were employed by Triple Net Properties (NNN). In July 2006, NNN sold the buildings to CA-based investor Chase Merritt for $15.3 million, which represented a 60% increase in price over NNN’s four-year hold period.
TNP’s Director of Acquisitions Charles Osbrink declined to discuss pricing, but did note the firm bought the Titan properties for “a significant discount” to what they sold for in 2006.
“When you’re given an opportunity to buy a building you’ve owned in the past, and buy for a significantly discounted price – it’s something we jumped all over,” Osbrink tells GlobeSt.
“We’ve always been confident in the San Antonio market, and especially the Northeast submarket. This is one of the best locations for an office building. There were not too many markets nationally that were not affected by the recession, but San Antonio was one of those markets that was more immune to the recessionary factors.”
Osbrink says TNP underwrote conservative rental rates for the Titan properties, which allows it to position these building as two of the most competitive in the market. “The leasing team, Transwestern, has lined up significant leasing velocity and is working on finalizing leasing terms with a number of tenants,” he says.
A few of the current tenants include Titan Indemnity Co., affiliated with Nationwide Insurance, Travelers Insurance and Sterling Bank.
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