AUSTIN-Rreef has acquired the 484,132-sf North/Northwest Portfolio on behalf of an institutional client. The final price is being kept under wraps, but similar industrial and flex properties have traded for $60 per sf to $75 per sf.
A spokeswoman for the San Francisco-based Rreef tells GlobeSt.com that a direct deal was struck with the portfolio's developer, Hill Partners of Austin. The properties are about 10 years old. The portfolio is 93% leased.
Matt Levin, research analyst with Oxford Commercial in Austin, says the properties are positioned in submarkets--the far northwest and northwest--with large inventories of flex and research and development competition. Nonetheless, the combined inventory of 5.8 million sf still has above-market occupancy of 88%, he points out.
"The Austin market overall showed 652,173 sf of absorption during Q4 2006, demonstrating a heavy demand for industrial product," Levin adds. Citywide, the inventory tops 38 million sf.
In a recent report, Oxford Commercial researchers conclude that industrial demand will continue to be strong this year, thanks to interest from companies wanting to relocate to the area due to the hardy local economy. Also fueling the sector are companies that view flex space as an alternative to the higher rents for traditional office space.
In the far northwest submarket, Rreef got title to NorthTech Business Centers 1 and 2 at 4616 W. Howard Lane and Waterford Centre 1 and 2 at 9100-9300 Waterford Centre Blvd. On the north side of town, it picked up Kramer 6 and 7, located along Kramer Lane near Metric Boulevard and Braker Lane.
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