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SAN ANTONIO, TX-Alteza, the 147-unit residential condominium component topping the 1,000-room Grand Hyatt San Antonio is coming to market. Though 39 luxury condos have already been sold, the remaining 108 units are being offered as a single asset.

The condominium component topping the city’s convention hotel at 600 E. Market St. doesn’t come with an offering price. However, Joshua Shatz, principal with Custom Properties LLC of Dallas says the condos could attract an end market price of $400,000 per unit. “There is strong rental demand and even demand for condominiums, especially in the downtown area where Alteza is located,” says Shatz who is marketing the asset on behalf of FaulknerUSA and partners, which developed and owns the Grand Hyatt San Antonio and Alteza.

As there isn’t a whole lot of financing available to condo buyers, “these could work well as short-term, corporate rentals, but whoever bought it for that use would have to have a strong local presence or strong local management company to do this,” Shatz tells GlobeSt.com.

The condominium component is coming to market just days after the San Antonio Express News updated readers about hotel and condo developer FaulknerUSA’s troubles with the project. Since the city signed an agreement in 2005 with the Austin-based developer onto the $215 million project, the convention center hotel and condo component experienced many delays due to weather and the discovery of utility lines beneath the site. Delay fines and other costs piled up on FaulknerUSA and its partners and liens and lawsuits are adding to the problem.

On the bright side, the Grand Hyatt San Antonio is open. Shatz points out that the hotel is drawing well, as is the city in which it’s located. He points out that San Antonio, as a whole, is one of a handful of US cities that is actually seeing growth. “The downtown area is supposed to grow next year as well,” he says. “That’s what makes this so unique.”

The ideal buyer, Shatz goes on to say, is one who could buy the component and convert it into mid-to-long-term corporate apartments. Then, when the market turns around, the units could be sold to interested residents. “This is in a middle of an area that is growing and it’s on top of the Grand Hyatt,” Shatz comments. “This is perfect for people who would need to stay two or three months, but don’t want to pay downtown hotel prices.”

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