City of San Antonio is the new owner of Hemisfair property slated for Project Marvel development
By Shari Biediger | San Antonio Report
July 6, 2026 at 6:24 PM CDT
The General Services Administration (GSA) announced Monday it has closed on the sale of a federal building at Hemisfair that is key to the city’s plans for a downtown arena district.
The City of San Antonio acquired the building for $30 million with funds from Spurs Sports & Entertainment, as outlined in a non-binding term sheet approved by city council nearly a year ago.
The sale marks GSA’s ongoing efforts to rationalize the inventory of federal real estate and cut costs for American taxpayers, according to the agency’s statement.
“Through an accelerated disposition process, we completed this transaction five years ahead of schedule, facilitating the federal government to divest an asset that no longer supports its operational needs,” said GSA Administrator Edward Forst.
GSA used a short-term sale-leaseback agreement to expedite the transaction, according to the statement, authorizing the agency to dispose of the underutilized property while ensuring uninterrupted operations for the current federal tenants.
The transaction included three parcels totaling 5.7 acres, comprising the San Antonio Federal Building West at 727 E. César E. Chávez Blvd. and two parking lots located directly across the street. The Union Square Building, as it’s known, was built in 1968 to support HemisFair ’68.
With the sale, the property is removed from federal inventory. GSA intends to relocate federal tenants to other office space in the surrounding area.
City officials have been eyeing the property for years.
“Today’s closing is an important step forward for downtown San Antonio,” stated City Manager Erik Walsh. The purchase gives the city a chance “to help guide future growth and redevelopment in the heart of our city as we work toward a downtown Sports and Entertainment District and a new Spurs arena.”
RC Buford, CEO of Spurs Sports & Entertainment, said the team’s leadership appreciates the collaboration with the City of San Antonio and the GSA who helped make the milestone possible.
“This supports the ongoing planning efforts for the downtown arena district and reflects the shared commitment to creating a place that will serve San Antonio for generations,” Buford said. “We look forward to continuing the partnership and work in the months ahead.”
GSA has disposed of over 127 properties since January 2025, including the Old Post Office, the Liberty Loan Building and the GSA Regional Office Building, all in Washington, D.C., and other properties in Maine, Minnesota, California and Tennessee.
Other buildings listed by the GSA for accelerated disposition are listed here. The agency stated that it projects that the sale of the buildings will eliminate $5 billion in delinquent maintenance and annual operating costs.
Walsh said in June that the city is also working toward acquiring the former UTSA Institute of Texan Cultures property for a new arena and expects the purchase price to come in around $60 million, a cost that will be funded by the Midtown Tax Increment Reinvestment Fund.
That property acquisition should be complete by the end of the year, he said.
The Spurs organization is hosting a series of public input sessions on the planned sports and entertainment district, starting July 13.
This story first appeared in the San Antonio Report.
The City of San Antonio acquired the building for $30 million with funds from Spurs Sports & Entertainment, as outlined in a non-binding term sheet approved by city council nearly a year ago.
The sale marks GSA’s ongoing efforts to rationalize the inventory of federal real estate and cut costs for American taxpayers, according to the agency’s statement.
“Through an accelerated disposition process, we completed this transaction five years ahead of schedule, facilitating the federal government to divest an asset that no longer supports its operational needs,” said GSA Administrator Edward Forst.
GSA used a short-term sale-leaseback agreement to expedite the transaction, according to the statement, authorizing the agency to dispose of the underutilized property while ensuring uninterrupted operations for the current federal tenants.
The transaction included three parcels totaling 5.7 acres, comprising the San Antonio Federal Building West at 727 E. César E. Chávez Blvd. and two parking lots located directly across the street. The Union Square Building, as it’s known, was built in 1968 to support HemisFair ’68.
With the sale, the property is removed from federal inventory. GSA intends to relocate federal tenants to other office space in the surrounding area.
City officials have been eyeing the property for years.
“Today’s closing is an important step forward for downtown San Antonio,” stated City Manager Erik Walsh. The purchase gives the city a chance “to help guide future growth and redevelopment in the heart of our city as we work toward a downtown Sports and Entertainment District and a new Spurs arena.”
RC Buford, CEO of Spurs Sports & Entertainment, said the team’s leadership appreciates the collaboration with the City of San Antonio and the GSA who helped make the milestone possible.
“This supports the ongoing planning efforts for the downtown arena district and reflects the shared commitment to creating a place that will serve San Antonio for generations,” Buford said. “We look forward to continuing the partnership and work in the months ahead.”
GSA has disposed of over 127 properties since January 2025, including the Old Post Office, the Liberty Loan Building and the GSA Regional Office Building, all in Washington, D.C., and other properties in Maine, Minnesota, California and Tennessee.
Other buildings listed by the GSA for accelerated disposition are listed here. The agency stated that it projects that the sale of the buildings will eliminate $5 billion in delinquent maintenance and annual operating costs.
Walsh said in June that the city is also working toward acquiring the former UTSA Institute of Texan Cultures property for a new arena and expects the purchase price to come in around $60 million, a cost that will be funded by the Midtown Tax Increment Reinvestment Fund.
That property acquisition should be complete by the end of the year, he said.
The Spurs organization is hosting a series of public input sessions on the planned sports and entertainment district, starting July 13.
This story first appeared in the San Antonio Report.