Dornin Enters San Antonio with 189,388 SF Office Property

Dornin Investment Group (“DIG”) recently acquired a 91% leased, five-building, 189,388 SF office park in the North Central submarket of San Antonio.  All five buildings are single story and sit on a total of 13.7 acres of land.

The buildings offer tenants flexible and efficient floor plans along with a high ratio of walk up parking.  Numerous major retail centers in the area in addition to an abundance of dining, shopping, and entertainment venues in the immediate vicinity offer an unmatched amenity base.

Situated directly north of San Antonio International Airport, Parkway Plaza provides easy access to Stone Oak and Alamo Heights, two of the most prominentaly affluental regions know to the San Antonio area.  The property is adjacent to the newly completed Wurzbach Parkway (which connects US 281 and IH 35) and is located in the coveted North Central Submarket, which consistently produces the highest rents and occupancy rates in the city.

DIG intends to benefit from stable high yielding annual cash flows and value-added upside available through the lease up of current vacancy and increasing rental rates upon lease expirations.  The property currently has an occupancy level of 91% with average in-place rents that are approximately 10% below market rents.  The property's stable cash flows are derived from three large tenants who occupy 42% of the property.  These tenants’ average remaining lease term is approximately (5) 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.  Traditionally known for its tourism, convention business and large military/government presence, San Antonio is beginning to reform, shedding its two-dimensional label.   Today the city boasts multiple industries which are contributing to its driving economy including aerospace, oil and gas, financial services, healthcare, IT, and manufacturing.

Noticeable leasing activity has already occurred since the property was acquired.  Existing tenant Computer Solutions completed a 16,890 SF renewal and 1,810 SF expansion while BMC Corporation completed a 2,317 SF renewal for 24 months.  Furthermore, Yates Construction is in negotiations to renew their 7,200 SF space expiring at year-end and take an additional 3,000 SF.

We are excited to return to the San Antonio market especially with an asset we have previous experience owning and managing” said Chris Dornin, President and founder of Dornin Investment Group.  “The location of this submarket sandwiched between the CBD and some of the more affluent residential areas help drive demand for office space.  We anticipate the recent declining vacancy and increasing rental rates to continue.

Financing was arranged in-house by Scott Botsford through Colony Capital.  “This is our third acquisition financing with Colony in the last 8 months.  Much like our first two transactions they provided a great structure to accomplish our business plan and closed in less than 30 days” said Chris Dornin.  Dornin Investment Group has retained Transwestern to both manage and lease the property. 

About Dornin Investment Group

Dornin Investment Group is a real estate investment and asset management firm that invests in commercial and residential real estate in partnership with a broad base of institutional and private investors.  The firm specializes in distressed, opportunistic and value-add real estate investments in all major property types with a focus on office, flex, industrial, multifamily and hospitality properties. The company offers a full service investment platform providing property management, leasing, construction management and finance through its wholly owned affiliate Dornin Realty Advisors (“DRA”).  For more information, visit