Hartman vREIT XXI Inc., a publicly registered non-traded real estate investment trust, has purchased the Spectrum Building, a 10-story, 175,300-square foot office property located in San Antonio, Texas, for $16.5 million, or approximately $94 per square foot.
“The acquisition of the Spectrum Building represents another step in expanding our San Antonio footprint. This area provides both a centralized location and great access to the Northern San Antonio that is attractive to many businesses,” said David Wheeler, Hartman’s chief investment officer.
Built in 1986, the Spectrum Building is 87.7 percent leased to 12 tenants with staggered lease expirations. Three tenants each occupy more than 10 percent of building, including Oracle America Inc., the property’s largest tenant, which occupies approximately 85,500 square feet or 48.7 percent of the rentable space.
The REIT funded the acquisition with proceeds from its public offering and an $8.3 million draw from its $20 million revolving master credit agreement with East West Bank.
Hartman vREIT XXI is a Texas-centric REIT formed to acquire, develop and operate a portfolio of value-oriented commercial properties—those with potential for growth in income and value from re-tenanting, repositioning, redevelopment, and operational enhancements. Hartman vREIT XXI broke escrow on December 1, 2016 and raised approximately $30 million in investor equity, as of the third quarter of 2018, according to Summit Investment Research.