Lexington Corporate Properties Trust has bought an 80-acre office and industrial property in San Antonio from Harcourt Inc. for $41.8 million. The complex, called 19500 Bulverde, consists of two buildings totaling 559,258 sq. ft. About 146,180 sq. ft. of the space is devoted to office use, while the remaining 413,078 sq. ft. are warehouse space.
“The acquisition of the San Antonio Harcourt Brace facility represents a major institutional purchase of a long-term, net lease property with an investment-grade credit tenant whose lease provides for escalation of the base rent,” says Mike Garrido, president of Trident Realty Advisors. Garrido represented seller Harcourt in the deal.
“There is also potential upside with the Harcourt property insofar as the tenant has the ability to expand its operations at the Bulverde campus at a return on costs to the new owner that significantly exceed the in-going capitalization rate,” adds Garrido.