May 10, 2018
A 96,000-square-foot industrial building near downtown San Antonio sold to a San Francisco buyer. The buyer executed the transaction, an exchange, with the institutional owner for $5.6 million at a 6.9% cap rate. Republic Services Inc. is the sole tenant, with lease expiration in 2024.
Scott DeYoung with Faris Lee Investments represented the buyer, while Preserve West Capital negotiated on behalf of the seller.
The building delivered in 1985, and is situated on just over five acres at 1949 Hormel Dr., near the 410 Loop. According to DeYoung, the buyer wanted a long-term passive investment opportunity that incorporated rental growth. “The asset was purchased below replacement cost, especially in a market with rising commodity prices and construction costs,” he said.
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