ICP buys former Rackspace HQ for $21M

As part of $2.8M incentives agreement, will spend $21.5M redeveloping office campus

ICP Buys Former Rackspace HQ Near San Antonio for $21M
Industrial Commercial Properties’ Christopher Semarjian with rendering of Windcrest International Business Park (Industrial Commercial Properties, Getty)

A transformative project is on the horizon in a small suburb northeast of San Antonio.

Ohio-based Industrial Commercial Properties has acquired the 1.6 million-square-foot former Rackspace headquarters in Windcrest for $21 million, with plans to redevelop it into the Windcrest International Business Park, the San Antonio Business Journal reported

The purchase follows months of negotiations with Windcrest and Bexar County officials. The county agreed to provide $2.8 million in incentives. As part of the agreement, ICP will invest $21.5 million to revamp the property and create at least 600 jobs at the facility directly or through its leasing activity. 

The redevelopment will comprise a mix of uses, including light industrial, manufacturing, office and retail. ICP already has prospective tenants lined up, said executive vice president Keith Brandt.

“Windcrest, Bexar County and greater San Antonio is a phenomenal international industrial market with outstanding transportation infrastructure,” Brandt told the outlet.

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Rackspace, a publicly traded cloud computing company, revealed its plans in 2022 to vacate the campus in a dramatic downsizing move to Ridgewood Plaza II in North San Antonio, occupying somewhere between 75,000 and 90,000 square feet.

Late last year, Windcrest Mayor Dan Reese said that ICP aimed to attract multiple tenants to the development, leveraging San Antonio’s growing status as a trading hub. 

The project is expected to provide a huge economic boost to Windcrest, a town of about 5,800 people, according to ICP owner Chris Semarjian.

“The Windcrest International Business Park will be a healthy mutual fund for the city, county and (Windcrest Economic Development Corporation),” he told the outlet. “It will no longer rely upon the success and longevity of a single user.”

—Quinn Donoghue 

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