According to an 8K filing filed with the Securities and Exchange Commission, NuStar Energy LP, a San Antonio-based energy logistic company (NYSE: NS), sold its headquarters at 19003 West Interstate 10 just north of The Rim Shopping Center to Atlanta-based Truist bank for $103 millions.
NuStar will remain on the campus of 1,000,000 square feet.
Bexar County Appraisal district's valuation for 2023 put the assessed value of the building at $49.3million. NuStar, according to a memo filed by Bexar County in March 2063, is leasing the 300,000.00-square-foot NuStar building for 20 years, with an option to extend the lease for two 10-year periods.
During the first 20 years of the leaseback contract, the company pays its landlord an average annual rent of $8.2 Million. The agreement also includes a restriction against future development of a 6.231-acre parcel on the southern edge for as long NuStar or any NuStar affiliated is the tenant. NuStar retains an additional 13 acres on the 32-acre parcel.
NuStar informed its employees about the sale last week. A spokesperson told the Business Journal that the structured finance arrangement was designed to monetize non-earning assets and pay down some of the outstanding debt using the net proceeds of $102.4 millions, which included a series preferred stock.
The spokesperson stated that the proceeds of this transaction would strengthen our balance sheets and help us improve our financial flexibility, as well as pay off more series D preferred units earlier. In a climate of high rates of interest and some capital markets not being accessible to master limited partnerships, this transaction provides a cheaper way to generate capital than other financing methods and shows our commitment to be good stewards.
The spokesperson also added that there will be no impact on the employees.
According to previous reports, the company purchased the parcel of land in 2010 and built the campus by 2012.
A Truist spokesperson refused to comment when contacted.