In a bold fusion of past and present, the historic Maverick building in downtown San Antonio is set to be transformed into a unique hotel-style property, catering to both short- and long-term guests. This conversion, featuring 86 apartments in the 9-story edifice, marks a transition towards flexible accommodation in the city's center, courtesy of Placemakr, a hospitality group based in Washington, D.C. Partnering with local developer David Adelman’s firm, Area Real Estate LLC, Placemakr is injecting life into the iconic building with a multimillion-dollar upgrade, offering amenities such as furnished units, on-site support, and hospitality services. Adelman, expressing enthusiasm for the partnership, stated, "We’re always looking for ways to provide innovative solutions in commercial real estate," as reported by Express News.
While this breathes new life into downtown San Antonio, a shadow looms over the urban core's real estate development landscape, with rising interest rates and soaring costs causing developers to hit the brakes. However, some say these challenges could also serve to thin the herd, paving the way for novel concepts and leaner operations to emerge. John Beauchamp of Hixon Properties and David Adelman, chair of the Centro board, both voiced concerns about the chilling effect of economic pressures on new developments; "It’s putting a real kibosh on the new development in our industry," Adelman lamented in a meeting with the San Antonio Express-News Editorial Board.
This pivot in strategy comes amid cancellations and delays of numerous planned urban core projects due to the tough economic environment. These setbacks have hit various developments, such as the ambitious mixed-use project at the vacant Scobey industrial complex and the much-anticipated Civic Park at Hemisfair, which faces repeated delays. Complications like these are symptomatic of a broader hesitation as GrayStreet Partners and others reconsider the scale and timing of their upcoming projects amidst the risky financial climate.