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Asking Price Contact for pricing
NOI Net Operating Income N/A
Cap Rate N/A

Attributes

Building Area

Property Description

Jones Lang LaSalle (“JLL”), as exclusive advisor, is pleased to present the opportunity to purchase Petroleum Towers on a portfolio basis (the “Property” or “Properties”), which consist of two mid-rise, 8-story office towers located at 8700 Tesoro Drive and 8626 Tesoro Drive in San Antonio, Texas. Positioned directly off Loop 410, the Property is within a 8-minute drive from the San Antonio International Airport and is proximate to major thoroughfares such as US Highway 281, Broadway, and Wurzbach Parkway providing a true centralized location with accessibility to major economic hubs within the City. Built in the mid-1970’s, the properties have undergone substantial capital improvements by current ownership in the last 12 months totaling approximately $2.7M, presenting investors and users alike with an incredible opportunity to build critical mass in a burgeoning submarket with immediate value-add potential and long-term value appreciation in one of the most resilient cities in the nation. 

Investment Highlights

Ability to Own Property at Less Than 50% of Replacement and Lease Cost

-         The cost to recreate this building in the same location would be over $400 PSF giving a potential owner/user an incredible investment opportunity at an attractive cost basis

-         With current submarket average rental rates of $21.57 PSF, the efficiently-run Property coupled with the strong location makes a compelling case for an owner/user to own versus rent

Substantially Lower Operating Expenses than Market Average

-         Featuring estimated operating expenses for a user at only $8.00 PSF, the Property provides potential upside for an owner/user to capitalize on some of the lowest operating expenses in the City

Attractive Owner/User Opportunity for Large Contiguous Space

-         As one of the largest contiguous blocks of vacant space (approximately 116,000 SF in Tower I and 62,027 in Tower II) available for purchase in San Antonio, the Properties provide an incredible opportunity for a user to occupy either the majority or all of the Property over time

-         This presents a unique chance to create a corporate campus environment and control all aspects of Property

-         At a current occupancy of 21%, the owner/user could benefit from cash flow from other tenant’s lease payments to help cover operating costs

Highly Accessible, Visible, and Desirable North Central Location

-         Positioned in the heart of North Central San Antonio, Petroleum Towers offers convenient travel times to desirable residential areas including Alamo Heights, Terrell Hills, Olmos Park, Hill Country Village, Hollywood Park, and Castle Hills  

-         Superior visibility and access from Loop 410, with quick connectivity to IH-35, US Highway 281, and Wurzbach Parkway, providing easy access to major economic drivers such as the San Antonio International Airport, North Star Mall, Stone Oak, Live Oak, Alamo Quarry Market, Pearl, and Downtown  

-         With many tenants looking for more affordable rents outside of the CBD, the North Central submarket has attracted and retained many of them, maintaining a historical positive average absorption over the past two years


Efficient and Flexible Office Layout with Significant Recent Capital Improvements

-         Petroleum Towers feature efficient, flexible floorplates to accommodate a variety of user/tenant needs and uses

-         Above average parking ratio (5:1,000 SF) provides the capacity for high-density office users

-         Some of the recent capital expenditures by ownership in the last 12 months include roof replacement (Tower II), sealcoat parking lot, new elevators (Tower II), and mechanical upgrades

 

Resilient San Antonio Economy

-         As the 3rd fastest growing City in the nation (from 2010-2019), in large part due to the presence  of non-cyclical industries, business friendly climate, and low cost of living ; San Antonio is considered to be one of the strongest and most resilient cities in the nation 

Last Updated Date: 29 Apr 2021
John Taylor
John Taylor
Managing Director, Capital Markets
License details
TX-466052

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Last Updated Date: 29 Apr 2021

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