Editor’s Note: This story was published through a Partnership between KSAT and the San Antonio Business Journal.
The tallest completed office tower in downtown San Antonio in more than 30 years is on the market.
Newmark Group Inc. has quietly listed Frost Tower, the 24-story headquarters of Cullen/Frost Bankers Inc., for sale Nov. 5 with no list price.
Local firm Weston Urban and Dallas-based KDC co-developed the historic building. Construction completed in 2019.
Weston Urban is preparing to build its next massive downtown project, a 32-story luxury apartment tower at 305 Soledad St. The San Antonio History and Design Review Board has granted the final approval for the project in December, a key step in obtaining a building permit.
The nearly 3-acre property at 111 W. Houston St. holds an estimated value of $99.5 million, according to the Bexar County Assessment District. A limited partnership related to Weston Urban is listed as the current owner.
According to Newmark, Frost Tower’s 457,404 square feet of office and retail space is 80% leased. The 19th through 21st floors of the tower are partially leased, with 54,500 square feet of available space, according to the listing. The property includes a fitness center and tenant lounge.
Current tenants include:
Frost Bank, 278,222 square feet
Norton Rose Fulbright, 38,841 square feet
Ernst & Young, 14,606 square feet
Insight Global, 10,517 square feet
Bitdefender, 9,360 square feet
Christi Griggs and Brandon Logan of CBRE Group Inc. are currently overseeing the leasing of the building.
Bill Day, senior vice president of corporate communications at Frost Bank, said a deal wouldn’t change its commitment to downtown. The bank’s 18-year lease does not expire until June 2039. Frost Bank has about 600 employees in the building.
“It won’t affect us or our lease at all,” Day said. He declined to comment further on Weston Urban, as the bank financed the construction of the project, making their landlord a client – and Frost does not comment on specific clients.
Frost Bank will generate $297 million in cash flow from its lease, according to Newmark. The bank invested $27 million to fit out its lobby, offices, cafeteria and kitchen.
Weston Urban CEO Randy Smith did not respond to a request for comment before publication. Chase Tagen, director of Texas and Central US capital markets for Newmark, declined to comment.
New Haven, Connecticut-based architect Pelli Clark Pelli designed the building. Clark Construction, based in Bethesda, Maryland, was the general contractor.
As San Antonio continues to see job growth and the area continues to attract new residents, investors are returning to the local market. These factors, taken together with the downtown location and long-term tenants, indicate that a buyer for the booming tower could emerge sooner rather than later.
Local office market activity is approaching 2019 levels, with $588 million in investment last year, down from $401 million in 2020, but still down from $746 million in 2019, according to Real Capital Analytics data provided by Transwestern.
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