AUSTIN-Omninet Capital of Los Angeles entered Austin with its acquisition of the 190,570-square-foot Twin Towers. The seller of the multitenant building located in the East Austin submarket was listed as Twin Towers LP, a local entity.
Sales information about the 88%-leased office building at 1106 Clayton Lane was undisclosed, though the Travis County Appraisal District assesses it at $11 million. The property carried an ask of $12 million.
“This transaction was our first opportunity to work with both the buyer and the seller. While the number of tenants in the property made the sale challenging, we were grateful for the opportunity to facilitate the closing,” comments Walter Saad with CBRE in Austin in a press release. Saad and colleague Cathy Nabours negotiated the transaction between buyer and seller.
“The East Austin Office submarket has shown significant improvement since the time we offered Twin Towers for sale in the second quarter of 2012,” Nabours comments. “The submarket occupancy rates moved from 73% to the current rate of 87%, which is higher than the overall city occupancy rate of 86%. As the economy continues to improve and available office space becomes scarce in Austin, Omninet will have the opportunity to increase rental rates in Twin Towers.”
Though Twin Towers is Omninet’s first area acquisition, the buyer is no stranger to Texas as a whole. The company’s portfolio includes more than 6 million square feet of commercial office, retail and industrial throughout markets in Texas, California, Arizona, Nevada and Florida. In addition, Omninet is very actively purchasing multi-family units in these markets as well, with the intention of purchasing an additional $200 million plus in 2013.
“We are very happy with our purchase in Austin and our overall acquisitions in Texas. We believe Texas is a very robust and business friendly market and we plan to purchase another $100 million in commercial office properties in San Antonio and Austin in 2013”, comments Michael Daniel, a Managing Partner at Omninet Capital, in a press release.