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SAN ANTONIO-Allegiance Realty Corp. has spent $11.4 million to acquire a neighboring office building, setting an exit strategy into motion for a 303,000-sf complex that’s been reunited after several years of separate owners.

Two years after it took one deed, the Charlotte, NC-based Allegiance has bought the 153,000-sf, 10-story office building at 8401 Data Point Dr. from Principal Life Insurance Co. of Des Moines. Its neighbor is the 150,000-sf High Point Tower II, a 10-story building at 8415 Data Point Dr.

“It was a perfect marriage for these two buildings to be back together again,” says Chris Smith, president and CEO of Allegiance, “and it complements our exit strategy. We’re just maximizing the value in a relatively short time.” He tells GlobeSt.com that a decision will be made within three months if the reunited pair, built in 1980-81 on 9.2 acres, will be put up for sale. He says the complex is positioned to yield $25 million to $30 million on the open market.

Whether the decision is hold or sell, the acquisition delivers expansion space for tenants in Allegiance’s 94%-leased 8415 Data Point Dr. The just-bought building is 83% occupied and limited lease rollover for an in-place crowd that includes back-office space for LQ Management LLC, ILD Telecommunications and World Savings Bank. Smith says immediate savings were gleaned by combining vendors and contracts for the side-by-side buildings.

Allegiance used 1031 exchange funds from a 90,000-sf shopping center sale in Winnsboro, SC to acquire the northwest San Antonio building. John Taylor, vice president for Trammell Crow Co., represented the seller. TCC will continue to lease and manage the class B-plus duo.

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