Weston is funding the entire project? Interesting... If that is the case, it is not too often a developer completely finances his own project. Especially one of this scale (potentially).

Regarding banks and commercial real estate (CRE)...you are partially correct. A bank is not in the business of developing real estate. However, they do provide capital (in the form of commercial note facilities) to CRE projects. And just like any other capital investor, they will want their return on investment capital.

Frost makes millions of dollars in CRE capital investments every year. But, depending on the final scale of this project, they may not be able to finance the entire development even if approached to do so. Banks are heavily regulated as to how much they can loan in real estate capital, overall.

His company is developing the project[s], not the man himself. The financing will come from loans and other such sources I would assume and again, not from the man himself.

And yes, banks provide financing for real estate developments, including Frost, but Frost doesn't develop or finance their own office buildings. They just lease space.

But that is not how the actual building will look. It'll have glass but it won't be all glass from what I've heard. The design is stellar.

I gotcha. Thanks for the clarification.

Trying to get up to date on everything here in San Antonio.

Many businesses Own and Develop their office space including Frost. This project is a Weston Urban Development and will allow Frost to get out of ownership of a large downtown office building as well as other downtown properties in exchange for a sweet lease deal in Grade A office space.

This deal is the best for Frost, but that doesn't mean that they don't or wouldn't have developed their own Office space if the need was there.

I think that this is an unprecedented deal, and if it moves forward will do more for the future of Downtown San Antonio than any project since the development of the Riverwalk.

If the deal gets approved, here are some main bullet points:
- New 400,000 square foot office tower with Grade A Office space
- Redevelopment of Municipal Plaza
- Redevelopment of Metro Health (keeping Facade only)
- COSA centralizing employees predominantly in one building (most likely bringing more employees downtown)
- New residential along San Pedro Creek

That is a lot of change. In addition the City holds leases in more than 50% of Riverview Tower; what will happen there. I would suspect that Primera will attempt to sell the building, unless they can attract are large tenant.

I don't think that the worst case scenario is the deal not going forward. The worst case scenario would be that the Tower gets built and filled...Yay!
However:
- Municipal Plaza sits vacant outside of the council chambers
- Metro Health sits vacant
- Residential is not built, or very little is built
- Premera has issues finding tenants to fill the hole left by the city leaving

Sure we would have a nice shiny new tower, but there would be a lot of vacant space.

Now I am an optimist so I seem to overlook those things and believe that everything will work out perfectly and the CBD will become more lively and established.

This could be a groundbreaking project, but the agreement between COSA and Weston Urban and Frost is only the first step.

Not to mention the $100 million sell of a downtown office building recently. That will also have a big effect on downtown.

Its already been sold?

I believe so.

That sell raises the price per square foot for downtown office buildings to a price that makes downtown very attractive for spec office development.

Good cuz its about time we get some development downtown. I wanna see more skyscrapers. We're close to becoming the 5th largest city in the country, I think we should look like lol

100 million
 

IIRC, the announcement of that was the actual closing, so yes, it believe it is sold.

That with the Frost tower proposal, and the KDM announcement of the six riverfront properties up for sale, and CPS still looking at options for new HQ, and things may be changing on the SA skyline in the next few years like not seen in a very long time.

Also, developers are noticing the relatively cheap DT real estate as compared to Dallas, Houston, and Austin.

Things may soon be looking up. :cheers:

I assumed most would understand incorrectly...By "Weston," I was referring to his development company: Weston Urban. Next time I will make sure I am very clear for everyone.

Let's be specific here...As a matter of fact, Frost (as well as most banking institutions) have financed some of their own "office buildings." However, they are FAR less in scale than the proposed tower in downtown San Antonio. Of the ones Frost has financed, they are usually small-scale structures containing a bank branch and possibly a few extra SF for other offices (i.e. no more than one or two stories tall and usually less than 15k-20k SF). Yes, they do lease a large portion of their office portfolio...nonetheless, they do own quite a bit.

My original comment was based on yours...where you stated: "Weston Urban is developing and financing the new Frost HQ and the residential tower(s)..." I was not trying to engage in an agreement with you!

I hope we can move forward amicably. All-in-all...things may be heating up for downtown SA. And, that is what on which we need to focus.

Maybe I missed this, but does anyone know when they plan to release renderings?

I kind of doubt they have any, although there may be some sketches in somebody's drawer somewhere.

The city is still considering two different proposals, though I think, (hoping vigorously), that Weston's proposal will pass, and then we should see some action. :tup:

On my way walking in to work this morning; I noticed the Mayoral SUV parked out side of the Frost bank building. Then while in the elevator, I was talking with someone I work with about it and mentioned how Primera put a proposal forward for the City to purchase Riverview Towers. Someone else on the elevator said that the city will never buy this building referring to Riverview Towers, and then they got off on the 5th floor (City of San Antonio Finance Department).

Not sure what the time line is on whether COSA excepts the proposal from Weston Urban - Frost, but I just don't see it refused.

I was at a party a couple of weeks ago with an Assistant Director of TCI, the one handling the proposals, it slipped my mind to ask her about it.

Ivy is a good woman had her as a professor for a few of my classes at UTSA.

I talked to the Director of Ops at Geekdom, Lorenzo. And he said there aren't even renderings yet. So, it's still in the process of getting formulated. Also, as well, that the Riverview proposal is most likely not going to get accepted.

Thanks for the info. I hope Primera doesn't get accepted and that the Frost design is fantastic. Renderings probably won't be released until Summer or near there I'm guessing.

Is there any way of knowing when we'll hear when this proposal w/ Frost & WU is approved or is it just a waiting game?

Don't have any idea....probably waiting till after the holidays.:shrug: Rumors have it that the city is leaning towards the Weston proposal....and then after that it's another waiting game. Lol