AUSTIN, TX-Amplify Credit Union has purchased a 58,000-square-foot office building at 3600 Parmer Lane for its future operational headquarters. The financial institution will continue to occupy its current headquarters facility at 2608 Brockton Dr. and will expand into the new building as the company grows.
Amplify, which was original credit union for IBM, has five locations in Austin including one branch in its Brockton headquarters. It plans to open a sixth branch this summer. “Amplify didn’t have a lot of the problems that banks have had – it didn’t take on a lot of debt,” says Doug Rauls, director of acquisitions and investors for The Kucera Cos. who represented Amplify in the acquisition. “They’re well-capitalized, and they’re growing.”
Rauls tells GlobeSt. that Amplify, which has outgrown its 17,000-square-foot headquarters, commissioned a study to figure out how much office space it would need over the next 10 years. The study helped the credit union determine its criteria for its new facility: it wanted to acquire a building, rather than lease; it needed roughly 50,000 square feet; the building needed to be close to the IBM campus; and it needed to be relatively new with no significant changes required.
“The location was the real limiting factor,” Rauls says, noting that there were only a handful of buildings that met Amplify’s requirements. After searching for nearly 12 months, the team put another building under contract, but then came across the Parmer Lane building, which had just been listed for sale. “It fit Amplify much better,” he adds.
The 10-year-old building, owned by a group of local investors doing business under the name Austin RE Partners LLC, had listed the two-story, class B+ building for $6 million, or $108 per square foot. Rauls says Amplify paid less than the listing price, but declined to name a specific amount.
“We’ve been looking to consolidate our operations for some time, and when the opportunity arose to purchase this building at such an advantageous price, it fit perfectly with our strategic plan and business needs,” says Paul Trylko, CEO and president of Amplify. “The combination of favorable market pricing and a stable roster of existing long-term building tenants at 3600 Parmer allowed us to purchase the building without a net increase in our operating costs.”
As part of the deal, Amplify assumed an existing first mortgage with a life insurance company. Rauls says the credit union wanted to pay cash for the asset, but didn’t want to incur the pre-payment penalty.
Amplify will initially only occupy 5,000 square feet of its new building and will expand into the remaining space over the next decade. The current plan is to keep the majority of the existing tenants in the building and continue to renew leases until Amplify needs the space. The building is 83% occupied.
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