From San Antonio Business Journal — Tricia Lynn Silva, May 16, 2008

A company with a knack for taking on large projects has announced plans for its largest mega-development to date.

Brass Real Estate Funds has purchased 25 acres of land off of Interstate Highway 10 and Heuermann Road on the city’s far Northwest Side.

Plans for the site call for a new office community — emphasis on community.

Known as Brass Gateway, the project is expected to feature more than 500,000 square feet of Class A office development, according to Rick Rodriguez, who is the president of Brass Real Estate Funds.

The office space will be spread out over four to six buildings that will circle a prominent public space featuring waterfalls, eating areas and outdoor conference rooms.

A public announcement will be made next week.

Construction on the first round of office development for Brass Gateway — more than 200,000 square feet — is scheduled to begin in the first quarter of 2009, Rodriguez says.

Asked about the significance of the “Gateway” moniker, Rodriguez says:

“This development is a landmark project. It will be a formal gateway into San Antonio from the West.”

Rodriguez founded Brass Funds in 1996 as an investment and real estate development company.

To date, Brass’ portfolio boasts more than 2 million square feet of office space that is spread out over San Antonio and cities such as New Braunfels and Longmont, Colo.

Brass’ clients include private and institutional investors.

Each fund for a property purchase or development is set up as a limited partnership, with Rodriguez serving as the general partner for each LP. The real estate assets in the company’s portfolio are valued in excess of $200 million.

Heavy metal

Brass Gateway is certainly not the first large-scale real estate play for Rodriguez’ firm.

In September 2006, Brass Funds made headlines with its purchase of the city’s largest office park — Centerview Crossing.

Located along Loop 410 and Callaghan Road in Northwest San Antonio, Centerview once spanned more than 1.1 million square feet of space that was spread out over 26 buildings.

This past October, HPI Real Estate Services & Investments purchased 10 office buildings within Centerview.

Those structures are being demolished to make way for a new retail center called Centerview Marketplace.

This past December, Rodriguez announced that extensive rehab work on the remaining 16 buildings was under way.

New monument signs and a 60-foot tall color LED display are also in the works for the Centerview Crossing project — which has been renamed the Brass Professional Center.

At the time of its 10-building purchase out of the office park, HPI Managing Partner Mark Granados noted that Rodriguez saw the deal as a prime opportunity for the center — bringing in the retail amenities that would make it much more attractive for the property’s existing and future pool of tenants.

Now Rodriguez is turning his attention to another prime opportunity.

Says the businessman of Brass Gateway: “The property location and topography are perfect for our plans of creating a spectacular office environment that inspires creativity, productivity and successful businesses.”

It doesn’t hurt that the project will be located in proximity to the Dominion, one of the city’s most prestigious residential communities.

Local brokerage firm Magi Real Estate Services will oversee leasing for Brass Gateway. Magi Construction will serve as the general contractor.

Rodriguez serves as the president for both companies.

Rodriguez has announced his new development at a good time, given that San Antonio’s office market continues to post strong figures.

According to the recent market analysis by NAI REOC Partners, the city’s office sector recorded a vacancy rate of 13.6 percent as of March 31, 2008 — down from a rate of 14.7 percent the previous year.

The Northwest submarket, where Brass Gateway is to be located, is even tighter.

This real estate sector has seen its vacancy rate go from 14.1 percent at the end of the first quarter in 2007 to a rate of 12.8 percent a year later.

Demand for Class A office space remains strong in this submarket, notes Kimberly S. Gatley, senior vice president and director of market research for NAI REOC.

Presently, more than 1.4 million square feet of office space is poised to enter the market over the last three months of this year and the first three months of 2009.

That building blitz is being prompted by demand, Gatley continues.

And even with this onslaught of new space on the horizon, the Alamo City’s office market is positioned to hold up well in the future, Gatley says.

“San Antonio is sitting in a good position to see that level of demand continue,” she adds.