At sale time, the 5835 Callaghan Rd. building's roster was up to18 tenants and 61% occupancy, Vicki Cade with Grubb & Ellis Co.in San Antonio tells GlobeSt.com. She says the IRS, a 30-yeartenant, had occupied the lion's share of the building, but wantedan extra 10,000 sf on the first floor of the six-story buildingwhen it came time to renew. "This building could not accommodatethat," she explains.

According to Cade, five-year owner Summit Properties LP thendecided to prune the only office holding from itsmultifamily-weighted portfolio. Summit Tower was on the market atleast one year despite its positioning in a dense office and retailcorridor in the northwest submarket, a high-growth pocket formiddle-income residential and commercial product.

The class B building's high vacancy got the blame for longmarket run. "Once we got to 60% occupancy, we did get offers, butthis was the offer from a timing standpoint that worked," Cadesays.