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Originally Posted by WorldTexas
True enough, but if the demand were there, wouldn't the property owners pay to update the infrastructure? Or once a B always a B?
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Maybe it pays to operate at a loss and keep it for "land holding" reasons (i.e. The Milam)? Heck, demand is not even there for crumbling buildings (eyesore on St. Mary's) to let people squat in it.
There is some demand for Class A space; One Riverwalk (caddy-corner to the eyesore) is only at 65% but I remember a while back they were upgrading and renovating the ground floor and "restaurant" at River level. Wouldn't have gone through renovation if they didn't feel demand would be there; even after the downturn in '07.
From Apr. 2012
http://www.bizjournals.com/sanantoni....html?page=all
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Enter Winthrop, which purchased One Riverwalk from Equastone last year, and has spent more than half a million dollars to reposition the property — including upgrades to the common areas, and exterior and interior landscape improvements. The firm has plans for another half a million dollars in interior upgrades in 2012, adds Peloton partner Nancy Preis Russell.
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Give it a bit of time. Once the market absorbs the residential that's popping up, I expect a bit of an uptick at least by this time next year. Who know's, perhaps Weston might buy out The Milam and convert them to aparments, knocking two birds out.