TCC Puts Five-Building Chase Park on Market

The Dallas-based owner took the 15-acre development at 7600 Chevy Chase Dr. to 85% occupancy, up roughly 35 points since its acquisition from the lender, John Alvarado, TCC's senior vice president, tells GlobeSt.com. The 21-tenant complex has "a minimal amount of rollover in the remainder of this year and next year," he says. In 2008, 18% of the in-place pacts are ticketed for renewal.

"The play here is with the rapidly increasing rental rates in Austin, there is upside in leasing the current vacancy as well as with the renewal of tenants who are currently at below or market rents," Alvarado says. The lead tenants are Radiant Research Inc., 34,104 sf; Northrop Grumman Corp., 28,450 sf; and Seton Family of Hospitals, 26,475 sf.

The park was developed in stages from 1971 to 1975. A yearlong renovation was completed in 2001.

Because it's Austin, the class B asset is considered fodder for an institutional buyer, according to Alvarado, who's teaming with TCC's local senior vice president John Poston to market the property. "Institutions see Austin as a core market. A 'B' property is not a bad place to be," he says. "We expect interest from a diverse group of buyers." Tenant-in-common groups will zero in on the cash flow and private investors will be sizing it up for a probable long-term hold.

Alvarado predicts the no-minimum offering will bring at least $28 million to $30 million on the open market. From TCC's perspective, he says it's closing the book on a successful repositioning and timing the market run just right. "The market is really starting to take off," he says. "It's a good time to pass the baton to somebody else."