Shidler-Gordon JV Exits Austin for $25M

The Shidler Group's partner Matt Root was unavailable for comment about the hand-off of the 171,877-sf 800 Brazos and 148,629-sf Capitol Towers at 206 E. 9th St. The San Diego-based investment group and its New York City JV partner bought the buildings in January 2001 along with two others for $56.5 million. The other portfolio pieces were sold about two years ago. A CB Richard Ellis team started marketing the rest of the portfolio in October 2005.

The buyers of record for the 14-story 800 Brazos and two connected four- and five-story structures were Brazos Investment LP and Brazos Residential LP, which judging from the name is likely to stage a residential redo of an eight-acre property assessed at $13.93 million by Travis County. Formerly called One Commodore Plaza, the complex's major tenants include the Consulado de Mexico, Capitol Services Inc. and Anthony-Nak Jewelers. Its office space, last renovated in 2002, has a rental quote of $18 per sf.

Capital Towers, previously Two Commodore Plaza, is a 20-story office building with a rental quote of $20 per sf. Assessed at $26.95 million, the building not too long ago presented the largest open block of contiguous space in the Downtown. According to Shidler's press release, the building's major tenants now include Comerica Bank and GTE Mobilnet. The 0.68-acre tract includes a 12-story parking garage. Its buyer of record is Capitol Tower Investment LP.

The name behind the buying force, though, is an affiliate of Walton Stacy Development. According to tax records, Walton Stacy Development and affiliates own six properties, valued at $40.62 million, in the Downtown.

In a press release about the sale, Root says Shidler started churning its portfolio at the beginning of the year. The JV sale signals a market exit for the time being. "We will look for other opportunities to both buy and sell here in the future," Root says in the release.