SAN ANTONIO-The owners of a 79,865-sf telecom hotel have received $8.4 million from a national lender to replace an existing loan with a much higher interest rate. The 93%-occupied 100 Taylor Telecom Center, built in 1914, has been refurbished several times.
The two buildings at 301 and 323 Broadway St. are situated near the Downtown and one block from AT&T's main central office. The facility, sporting 60 parking spaces, is home to fiber providers like AT&T, Time Warner Cable Inc., Time Warner Telecom Inc., Verizon Business, McLeodUSA Inc., Qwest Communications International Inc., International Computer Graphics Inc., Alpheus Communications LP, Grande Communications Holdings and Xspedius Communications LLC. The telecom space carries a $15-per-sf quote.
A local source tells GlobeSt.com that the property is unique on several levels. "San Antonio is definitely in the top three or five markets for telecom space," he explains. "Following 9-11, all carriers are moving away from the coast due to the fear of terrorism and because the cost of real estate is so high on both coasts."
There aren't a whole lot of telecom hotels in the city so "the demand is high and likely to become higher," the source says. "We live in a high-tech society and companies need this kind of space."
Taylor Street Venture LP, an affiliate of San Antonio-based Cross & Co., secured a fixed-rate interest of 6.49% over a 10-year term. Alex J. Katz and Zar Haro with Meridian Capital Group's Texas office arranged financing. Calls to Meridian were not returned by press time.
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