City of Austin Pays $26M for Office Asset
The property was 20 percent leased at the time of the sale.
The City of Austin has acquired University Park, a 206,657-square-foot office building in Austin, Texas. Lionstone Investments sold the property for $26 million, with the assistance of JLL Capital Markets.
The property was 20 percent leased at the time of sale. Lionstone had purchased it from Spear Street Capital in 2016, according to CommercialEdge information.
Austin’s office investment volume in the first quarter of the year clocked in at $111 million, according to the latest CommercialEdge report. Assets in the metro traded for $278 per square foot, well above the $183 national average. However, the market’s vacancy rate was one of the biggest in the U.S., reaching 28.5 percent.
A LEED Gold-certified Austin office building
Completed in 2008, the eight-story building is at 3300 N. Interstate Highway 35. Located within 2 miles from downtown Austin, the mid-rise is also north of the University of Texas and adjacent to St. David’s Medical Center.
The LEED Gold-certified property has floorplates averaging 24,376 square feet. Amenities include a fitness center, retail space and covered parking. Its tenant roster currently features SpareFoot, WeWork, The Central Texas Regional Mobility Authority, Iron Crest National Title and Ticketbud, the same source shows.
JLL Capital Markets Managing Directors Ryan Stevens and Drew Fuller led the investment sales and advisory team that worked on behalf of the seller.
At the beginning of March, Lionstone sold Advance Auto Parts Tower, a 20-story, 346,000-square-foot, LEED Gold–certified office tower in Raleigh, N.C. Highwoods Properties Inc. acquired the property for $138 million and the transaction was featured on Commercial Property Executive‘s short list of significant office and industrial deals that have closed so far this year.
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