$31M Office Project Gets 50,000-SF Prelease

Development partners Principal Financial Group Inc. of Des Moines and Austin-based Riverside Resources wanted a lease signed before beginning construction on the project's second phase, which will go up at the intersection of Braker Lane and Stonelake Boulevard in the far northwest submarket. The Hauppauge, NY-based SMSC has operations in the far northwest and on the west side. The company plans to put the two teams under one roof.

Jeremy Smitheal, partner with Riverside Resources, tells GlobeSt.com that the 45-acre Quarry Oaks' campus has enough room for three more phases, but the build-out has yet to be determined. "It could be a hotel, more office space or restaurant space," says Smitheal, who represents the developers. "It'll depend on market demand."

Principal and Riverside Resources acquired Quarry Oaks in 2003. At the time, the only structure standing was the 165,000-sf Quarry Atrium, an empty class A building at 10900 Stonelake Blvd. Smitheal says the building took less than a year to lease up, which bodes well for Quarry Oaks II. "We've seen a lot of activity and interest on this," he says. "Tenants have responded well to Quarry Oaks' location and amenity base."

There is no quoted rate as yet for Quarry Oaks II. According to Austin-based Oxford Commercial's fourth quarter 2007 report, the submarket's class A rents stand at $27.82 per sf.

Michael Wiley, associate with Southwest Strategies Group in Austin, represented SMSC. Quarry Oaks II's architect is Dallas-based HKS Inc. and its engineer is LJA Engineering & Surveying Inc. of Houston.