The San Antonio office of Transwestern has recently brokered the sale of Brookhollow Park – a 102,466-square-foot Class A office building. Located in the North Central submarket of San Antonio, the multi-tenant building is currently 100 percent leased.
Built in 1999, the four-story property is considered to be a solid asset for investors, providing above-average returns. Due to its established investment-grade tenant base and location, Brookhollow Park represents a low-risk investment. The city’s North Central submarket has been recording vacancy rates that historically trend below the San Antonio city-wide average.
“Investors recognize the value in stable Class A office investments,” said Alan Grilliette, managing director with Transwestern, who teamed up with Hale Umstattd and Leah Gallagher to represent the seller in this transaction, Grosvenor International. The buyer was not disclosed.
The downtown office market had a tough 2012, ending the year with 333,000 square feet of negative absorption. Moreover, its vacancy now stands at more than 30 percent, according to the San Antonio Business Journal.
Still, the future looks bright for the downtown submarket; according to Gallagher, 2013 will mark a larger volume of office deals in the Alamo City due to three main factors: its proximity to the Eagle Ford Shale, the bilingual workforce and the fact that investors are turning their attention to secondary markets like San Antonio as prices for office properties in the larger core markets have risen above what many buyers are willing or able to pay, the business journal reported.
Photo credits: Grosvenor International
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