The affordable Robert E. Lee apartment building in downtown San Antonio that went on the market last summer has a new owner.
The San Antonio Housing Trust Foundation, which had initially offered $3.27 million for the multifamily housing tax credit property at 111 W. Travis St., finalized a sales contract on Tuesday.
The final price was not disclosed but the agreement calls for the Housing Trust to assume an existing, 20-year-old loan of $1.7 million, according to documents provided by the Texas Department of Housing and Community Affairs (TDHCA).
As the city’s nonprofit affordable housing entity, the Housing Trust is expected to close on the deal in July, said Pete Alanis, executive director of the San Antonio Housing Trust Foundation.
“This agreement ensures that one of downtown’s most affordable multifamily communities will remain accessible to the people who need it most,” Alanis said. “We are excited to have an opportunity to acquire and improve this historic downtown building while ensuring the residents will have a great place to call home.”
Built as a 200-bed hotel in 1922, the Robert E. Lee was the tallest hotel in the city at the time.
The Confederate general for which it’s named spent several years of his military career in Texas and San Antonio. The neon signage spelling out his name, perched on the roof of the 10-story building, was added in 1938.
In 2017, amid national debate over the removal of Confederate monuments, the building’s owner requested approval from the city to shorten the neon sign to “Hotel Robt.” The Conservation Society of San Antonio pushed back on the owner’s request and the neon sign remains unchanged.
Alanis said there are no plans to change that name or remove the signage.
After the hotel closed its doors in the 1970s, the building was turned into apartments sometime in the ’90s. The historic high-rise situated near Weston Urban’s 300 Main luxury residential building and Frost Tower is listed in the National Register of Historic Places.
As an apartment building, 56 of its total 72 units are currently occupied and five potential residents remain on a waiting list.
The building’s tenants first learned of a potential sale by owners RELEE Partners in August when the group notified residents that developer Weston Urban submitted a bid of $4.35 million for the Robert E. Lee building.
Documents from TDHCA show the charitable arm of Chicago-based Celadon Construction Co. also made an offer of $4.35 million for the property.
RELEE Partners did not respond to an email requesting more information on the sale.
The Housing Trust expects to begin planning for renovations to the 103-year-old building, which has long served as affordable housing for low-income seniors and individuals with disabilities.
The full extent of renovations and the cost will be determined through an architectural and engineering report still to come.
“We want a property that’s going to serve our low-income community for a very long time,” he said.
To help pay for repairs, Housing Trust officials plan to apply for tax credits to refinance the deal and also historic tax credits.
Alanis said it’s too early to know if residents could be displaced during the renovation, adding, “But we’ll be working with the residents of the property and make sure that they’re impacted as least as possible.”
Every unit at the Robert E. Lee is offered to residents making 60% of the Area Median Income ($37,200 annually) or less. Under the new structure, at least 15% more of the units will be reduced and offered only to residents making 30% of the AMI, or $18,600 a year.
City Councilwoman Sukh Kaur (D1) said she is happy the building will remain affordable for residents in the district.
“Over the past year and a half, my team and I have worked closely with residents through serious challenges, so we know how much this acquisition means,” she said.
