CPS Energy Offers Several Opp Zone Assets for Market

SAN ANTONIO—CPS Energy, San Antonio’s municipally owned gas and electric utility company, has several assets for sale including several in opportunity zones. Recognizing the overall strength of the market for urban infill assets, and in conjunction with the relocation to its future headquarters, CPS Energy continues its portfolio optimization efforts.

The individual assets include the following acquisition/redevelopment opportunities: 145 Navarro St. office space of 218,000 square feet on 0.468 acres, 146/134 Navarro St./Navarro Building, which is currently a parking deck and office space of 98,000 square feet on 1.311 acres, 401 Villita St./Villita Assembly Building (retail/special use) of 25,000 square feet on 1.113 acres, 121 Navarro St. which is a parking lot that is a development site of 44,000 square feet on 1.029 acres, 211 Villita St./Tower Life Garage which is a CPS interest (currently a parking deck) of 50,000 square feet on 0.185 acres, 7000 San Pedro Ave. (currently an office building) of 50,000 square feet on 4.24 acres and 326 Jones Ave. development site of 3.47 acres.

The sites are zoned diversely, allowing multiple uses, including office, multifamily, hotel, retail and general commercial. CBRE is handling the exclusive marketing assignment for these assets on behalf of CPS. John Alvarado, Jared Chua and Jennifer Joseph with CBRE’s investment sales team, Peter Jansen, first vice president with CBRE’s public institutions and education solutions team, and Gene Williams of CBRE’s national advisory and transactional services team are representing the sellers.

“We are very pleased to be marketing these assets on behalf of CPS Energy at this important juncture in the history of San Antonio. Texas continues to attract global capital and talented developers, and the timing of CPS Energy’s assets coming to market aligns perfectly with the dynamic activity in the city and the release of the guidelines for federal opportunity zones. The portfolio of assets within the federal opportunity zone is of institutional quality and scale,” said Jansen.

Bid dates will be announced shortly and are targeted for late July 2019, with the offering memorandum to be released early next month.

“To our understanding, this is a first institutional quality opportunity in a central business district available to investors,” Jansen tells GlobeSt.com. “With its size, standing and diversified economy, San Antonio is finally being explored by the national and global real estate community. These assets are a perfect renovation/redevelopment opportunity in a prime location, allowing opportunity zone investors to meet capital deployment timing thresholds.”

An opportunity zone is where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as opportunity zones if they have been nominated for that designation by the state and that nomination has been certified by the secretary of the US Treasury via delegation of authority to the Internal Revenue Service.

Opportunity zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017. These zones are an economic development tool designed to spur economic development and job creation.

The first set of opportunity zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity zones have now been designated covering parts of all 50 states, the District of Columbia and five US territories.

➤➤ Join the GlobeSt.com ADAPT: Opportunity Zones conference September 16-17 in Baltimore, MD The new national conference series is aimed at identifying opportunity zones across all property types and geographic regions. This first-of-its-kind event will educate, connect and celebrate the investors, developers and owners with the people behind the planning and decision-making, such as architects, consultants, academics and most importantly, municipal officials.

Click here to register and view the agenda.