By Andy Sevilla.
With the opening of the Hays County Government Center on Wonder World Dr. in early 2012, county employees began their exodus to the newly constructed $50 million government complex, leaving four downtown county buildings empty on the San Marcos Square.
After nearly two years on the market, Hays County finalized the sale of the last two vacant properties in December – Hays County Courthouse Annex building and the Hays County Records Building – though in one deal, the county took a $400,000 hit.
According to the Hays Central Appraisal District (CAD), the courthouse annex was assessed at $1,014,380 for 2013, but Austin-based Primus Real Estate Service purchased the building from Hays County for $622,885 on Dec. 30.
That’s about $400,000 lower than its assessment, according to Hays County Auditor Bill Herzog who spoke with the Hays Free Press Monday.
Hays County Attorney Mark Kennedy said the county used Austin-based commercial real estate firm CBRE to sell the properties, knowing they may be sold under the appraised value; the only condition was to accept offers from everyone willing to bid.
And though the county took a loss with the annex building, Kennedy said it was the best offer fielded. He said that building had complications with ADA (Americans with Disabilities Act) compliance and any new public buyer would need to bring it up to federal code.
Primus also bought the Hays County Records Building on Dec. 30 at a $40,000 mark up. Hays CAD assessed the property at $460,560 for 2013, but it sold for $500,000.
Primus Partner Mark Shields said in a statement that his company purchased the properties after some necessary negotiations, but didn’t comment on the specifics.
“There were some minor issues that needed to be worked out,” Shields said. “I am very excited about these properties and the activity happening in San Marcos.”
Primus also purchased the county’s former Justice Center at 110 W. MLK Drive on Oct. 29, 2012, at $1.25 million; Hays CAD assessed that property at $1.249 million for 2013. Shields told the Hays Free Press in a telephone interview Friday that though the building could “fairly easily” be repurposed for retail or office space, he has been in discussions with a group looking to create a vertical development at the site.
Shields said developers for student and multifamily housing have voiced interest in a potential four or five story complex. Though discussions are ongoing, he said nothing has been finalized; and for now, Primus plans on repurposing the 39,527 square-foot Justice Center building to retail or office space.
CBRE said in a statement Friday that Primus is planning extensive renovations for the 1879 Courthouse Annex building at 102 North LBJ Drive. The company is looking to restore the building to its original condition and make way for mixed-use development including a ground floor restaurant.
The Records Building at 137 North Guadalupe Street, also bought by Primus, is an 8,450 square-foot, two-story building slated to house two small restaurants on the ground floor and multifamily at the top, CBRE said.
Shields said Primus was interested in acquiring the downtown properties because the economic outlook for the fast-growing city looked promising.
“The acquired buildings are prominently located around the San Marcos Square, making them visible to residents and visitors alike. Mark Shields is a perfect fit for new ownership as he is a seasoned real estate veteran with deep ties to Central Texas and he already owns property in San Marcos,” said Walter Saad, a First VP with CBRE. “He understands the importance and history of the buildings, as well as the impact his actions will have on the vitality and growth around the Square over the long term.”
Primus owns the San Marcos Place shopping center at Texas 80 near northbound I-35, which is anchored by Half Price books and a Chinese buffet restaurant.
The Max C. Smith building at 302 W. San Antonio Street was the first county building to be sold in 2012. County records show Austin-based Muzun Investments bought the building for $386,650 in August 2012. The owners converted the building into a residential rental property.
Hays County still maintains ownership of the 1908 Courthouse that sits at the city’s center and still holds Commissioners Court meetings there every Tuesday morning.
