SAN ANTONIO—Laguna Beach, CA-based Dornin Investment Group (DIG) has acquired Parkway Plaza, 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. [GlobeSt]
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