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Kim_Gatley
Kim Gatley
S
enior Vice President & Director of Research at REOC San Antonio

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DIG Acquires SA’s Parkway Plaza

Parkway Plaza

Parkway Plaza

Laguna Beach, CA-based Dornin Investment Group (DIG) has acquired Parkway Plaza, 814 Arion Pkwy, a five-building, 189,388-square-foot office park in the North Central submarket, the firm exclusively tells GlobeSt.com.

The 91-percent leased property sits on a total of 13.7 acres directly north of San Antonio International Airport and adjacent to the newly completed Wurzbach Parkway.

DIG aims to benefit from “stable high yielding annual cash flows” and the value-added upside that is available through the lease up of current vacancy, and increasing rental rates upon lease expirations. In-place rents at the property are approximately 10 percent below market rents. The property’s stable cash flow is derived from three large tenants who occupy 42 percent of the property. These tenants’ average remaining lease term is approximately five years, with the largest tenant, J. Crew, expiring in 2021. In addition to recognizing cash-flow opportunity, DIG also identified the steadfast evolution of San Antonio’s business friendly economy which has allowed the city to endure both market upswings and downswings.

Noticeable leasing activity has already occurred since the property was acquired. Existing tenant Computer Solutions completed a 16,890-square-foot renewal and 1,810-square-foot expansion while BMC Corp. completed a 2,317-square-foot renewal for 24 months. Furthermore, Yates Construction is in negotiations to renew its 7,200-square-foot space expiring at year-end.

Financing was arranged in-house by Scott Botsford through Colony Capital.

DIG has retained Transwestern to both manage and lease the property.

Click to read entire article: DIG Acquires SA’s Parkway Plaza (GlobeSt., 09-16-15)

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