CPS Energy has sold its former headquarters on the San Antonio River Walk.
The buyer, Blueprint Hospitality of Houston and Chicago, plans to redevelop the building at 145 Navarro St. into a hotel.
It sold for $19 million.
“It’s a phenomenal building in a great location with great proximity to the River Walk and the convention center,” said Kishan Patel, managing partner and chief operating officer at Blueprint. “San Antonio is right in our backyard, so it seems like a very exciting opportunity for acquisition out there.”
Blueprint’s portfolio includes two historic properties redeveloped for lodging — the AC Hotel by Marriott in Little Rock, Ark., and a Hilton Hotels property in St. Louis, Mo. Another project is in the works in downtown Fort Worth, Patel said.
The former CPS building in downtown San Antonio is a designated historic local landmark. Constructed as an eight-story building in 1926, the same year the Aztec Theater opened on North St. Mary’s Street, its upper two levels were added in 1984-85, according to CBRE, which marketed the property.
Patel said it’s too early to say what the timeline is for the project, but he hopes to start next year. Similar to Blueprint’s other projects that involve preserving historic buildings, modifications will be made mostly to the interior.
“It’s exciting to be able to preserve some of that history and go into a building that’s 100-plus years old,” Patel said. “You don’t come across those buildings in every market in Texas that often that are well-positioned.”
The office building had been on the market since 2019 when the utility moved to its new home at 500 McCullough Ave., following an extensive renovation of the former AT&T headquarters.
The sale of its Navarro property comes nearly a year after CPS sold two adjacent holdings connected by a sky-bridge to BH Properties. The commercial real estate firm from Los Angeles paid $22.3 million for the combined office building and parking garage that the firm planned to upgrade.
The sale of surplus CPS properties was meant to partially offset the cost of remodeling the McCullough property.
There were multiple bidders for the vacant headquarters building, said CPS spokeswoman Christine Patmon. The Navarro properties are located within two tax increment reinvestment zones and a federal opportunity zone that allows investors to reduce and defer capital gains taxes.
CPS-owned properties still on the market include the rotunda-style Villita Assembly building at 401 Villita St. and a surface parking lot at Navarro and South St. Mary’s St., next to the Mexican Consulate.
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