San Antonio - 1221 E. Broadway ~ When Things Fall Apart

When major developments are announced there is usually a press release with city officials and the developers all digging dirt with golden shovels. In 24 to 36 months a ribbon cutting ceremony takes place. A San Antonio developer unfortunately did not get a chance to make his vision of 253 apartment units come to pass. We discussed the failure of 1221 E. Broadway prior to our onsite visit. According to a credible source, the developer was being backed by a European bank that funded the project site unseen. The developer however did not do the homework necessary such as a market feasibility study. Instead of outsourcing an experienced architect firm with a solid track record he opted to hire a retired architect. According to sources this architect was basically a "yes man," and agreed to the developer's instructions. In time the lack of preparation would catch up to the ambitious developer. Soon he found himself way over budget.

Unable to meet his financial obligations the developer was forced to stop the project. The city was stuck with a giant concrete eyesore near its major freeways for all to see for the next several years. The property remained in legal battles for several years.

When we arrived at the site it was obvious that vagrants used the property as temporary housing. The property still had plenty of potential. The thick concrete frame was already in place and the parking garage was in tact. In my other real estate courses I discovered that parking garages can be extremely expensive to create.

Apparently Developer Ed Cross also recognizes the potential to redevelop this property. His company, Cross & Company recently purchased the property once it was out of litigation. They have already parked a mobile office adjacent to the property and plans to begin renovating the property this year adding an additional floor and demolishing certain portions of the building.