SAN ANTONIO – For nearly a decade, the city of San Antonio and a Dallas-based developer have been trying to turn a long-troubled East Side property into an affordable apartment complex.
But the project has stalled after millions in public support and years of planning.
The site, on East Commerce Street, was once part of the Friedrich Air Conditioning complex. A cluster of buildings behind what is now considered urban decay was demolished in 2023 to make way for the development. In April 2023, Provident Realty Advisors’ Basil Koutsogeorgas said, “We’re overjoyed that we’re starting demolition and look forward to rebuilding the area.”
Plans call for 358 loft apartments, with half expected to have reduced rent. The developer, Provident Realty Advisors of Dallas, also had to conduct extensive environmental testing because the property was contaminated.
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Three years later, the site remains empty and sealed off, drawing frustration from nearby residents. East Side resident Mark Kusey said, “The people that live here deserve better from the city and we don’t deserve to go by this blight every single day.”
The city contributed $1.7 million to help pay for demolition, saying the money came from the Inner City Tax Increment Reinvestment Zone, which is used to support development. Provident pays no property taxes because it partnered with the San Antonio Housing Trust.
Calls and emails to Provident were not returned. Housing Trust CEO Pedro Alanis said market conditions have further delayed completion of the project, citing higher costs and borrowing challenges. “We’re seeing a rise in inflationary costs, a rise in interest rates, and that’s really creating a lot of pressure in terms of being able to get the project closed,” Alanis said.
Questions remain about whether developers will move forward with the city-supported project, when construction could begin, and whether rising inflation costs and interest rates will create further delays.