San Antonio, Texas-based Brass Real Estate Funds and Capmark, formerly GMAC Commercial Mortgage, have acquired the city’s largest office complex in what is expected to be the biggest real estate deal this year in San Antonio. Although the terms of the deal weren’t disclosed, the joint venture paid an estimated $85 million (€67 million) according to one report.
Brass managing member Rick Rodriguez did not return a call for comment, but said in a statement that the acquisition was “below market value” and stood at less than 50 percent of the property’s replacement value. The property, for which Brass is planning upgrades, is assessed at approximately $40 million, according to reports.
Capmark, which has invested $160 million in Brass ventures, provided both debt and equity for the transaction.
Centerview Crossing, a 1.1-million-square-foot complex, is composed of 26 buildings spread over 80 acres. Tenants include Aetna Insurance, Progressive Insurance, Wells Fargo, Northrup Gruman and government agencies such as the Department of Defense and the Social Security Administration.
Magi Real Estate Services, an affiliate of Brass, will take over leasing and property management at the site.
Brass Centerview will be the firm’s first vehicle primarily funded by institutional equity, according to a statement. The Rodriguez family has been the largest investor in Brass’ funds to date, with high-net worth individuals also committing capital. Brass Real Estate Funds has set a goal of acquiring $1 billion in real estate assets by 2010. The Centerview transaction gives Brass a two-million-square-foot portfolio and $200 million in assets, according to the statement.