SAN ANTONIO – (Realty News Report) – BH Properties has purchased the vacant Navarro Building on the Riverwalk in San Antonio from public utility CPS Energy.
The Navarro Building and adjacent parking garage along the Riverwalk features about 100,000 square feet of office space situated atop one of the city’s largest parking structures, with 605 parking stalls.
Located at 146 Navarro Street, the structure was originally built in 1968 as a seven-story parking facility for Hemisphere ’68, the official World’s Fair held in San Antonio. In 1987, three stories of office space were added above the garage to accommodate growth at CPS Energy, which now serves more than 1.2 million customers in the greater San Antonio area. CPS Energy vacated the property in 2020 after consolidating operations into a new downtown building.
CBRE’s teams marketed the property on behalf of the seller. Team members involved included Gene Williams with CBRE’s Global Advisory and Transactional Services, Jared Chua and Jennifer Joseph with CBRE’s Institutional Properties group, and Peter Jansen with CBRE’s Public Institutions and Education Solutions team.
Each of the building’s three cantilevered office floors offers generous 28,000-square-foot floor plates, large wraparound patios, nine-foot ceiling heights and floor-to-ceiling windows that provide unobstructed views of downtown San Antonio. The property also includes approximately 14,500 square feet of street-level and second-floor office and retail space. With abundant on-site parking, the Navarro Building provides a market-leading parking ratio of roughly 6.00 spaces per 1,000 square feet.
This purchase marks BH Properties’ second recent investment in San Antonio. The Los Angeles–based firm, which owns more than 3.5 million square feet of office, industrial and retail space across Texas, previously acquired a ground lease position for the 300,000-square-foot Highpoint Towers in San Antonio’s Medical Center District.
BH Properties plans a substantial capital improvement program to elevate the office component to institutional-quality Class A space, suitable for either single-tenant or multi-tenant occupancy. Planned upgrades include refurbishing balconies, redesigning public spaces such as lobbies and restrooms, installing new lighting throughout, and completing a range of additional improvements. The owner also intends to modernize the garage with updated access controls and electric vehicle charging stations.
“Having been built for and occupied only by CPS, this is truly a one-of-a-kind asset that has never been offered to the leasing market before,” said Scott Henry, Managing Director, Acquisitions and head of BH Properties’ Dallas office. “Our improvements combined with the incredible office views, the abundant parking, and its Riverwalk location will position the Navarro Building competitively against newer downtown product.”
CPS Energy has faced environmental controversy related to its coal-fired Spruce power plant at Calaveras Lake on the city’s southeast side.
Founded 30 years ago by real estate entrepreneur Steve Gozini, BH Properties maintains offices in Los Angeles, Phoenix and Dallas. The company focuses on value-add transactions, distressed debt and ground leases, and today owns and operates nearly 10 million square feet across 19 states.
Feb. 14, 2021 Realty News Report Copyright 2021
File: San Antonio Riverwalk Building