Corporate Office Properties Trust Buys San Antonio Building

Corporate Office Properties Trust has deepened its foothold in San Antonio’s Westover Hills area.

The Maryland-based REIT, which provides real estate services to government and defense contractors, has acquired an 80,000-square-foot office building at 3900 Rogers Road from a partnership associated with Trans American Research and Development Corporation of Virginia, the San Antonio Express News reported.

The sales price was not disclosed, but the two-story property was listed earlier this year for $21 million, or about $261 per square foot. Kris Forks of Kuper Sotheby’s International Realty represented Trans American Research in the transaction.

The seller had invested in significant upgrades to the nearly 9-acre property, including interior renovations, enhanced landscaping and the addition of a perimeter security fence. Health insurance company Aetna was previously a tenant, but it moved out in 2022.

The acquisition adds to the firm’s portfolio in San Antonio, which includes several other defense-oriented properties. It owns buildings leased to the National Security Agency, including the Texas Cryptologic Center, as well as a data center operated by Amazon.

The company has remained tight-lipped about its plans for the Rogers Road property. A spokesperson for the firm declined to comment.

The Rogers Road building is situated amid other large office properties on the market. Nearby listings include a 198,000-square-foot building previously occupied by Kohl’s.

While there is some optimism regarding rent growth, the office picture in San Antonio hasn’t been stellar. Vacancies last year reached the highest level since 2013, and there is a trend of downtown tenants moving to more modern buildings on the North Side, often reducing their square footage.

— Andrew Terrell