AUSTIN, TX-CBRE has negotiated the sale of the Continental Building, 9101 Burnet Road and the Briarcroft Building at 12710 Research Boulevard, on behalf of international real estate investment and services company, Kennedy Wilson. OakPoint of Nashville, TN, purchased the portfolio for an undisclosed price.
Continental Building is a 58,700-square-foot class B office property in the North Central Austin submarket. Tenants benefit from the property's proximity to the Kramer Capital MetroRail Station. Additionally, the building sits within the boundaries of the City of Austin's North Burnet/Gateway Master Plan, which includes improvements and rezoning for restaurants, transportation and other mixed-use enhancements that would significantly grow the area's population and density by 2035. At the time of closing, it was 85% occupied.
Briarcroft Building is a 63,825-square-foot class B office property situated in the center of Austin's technology corridor of the Northwest submarket. In the first quarter of 2013, the Northwest submarket had 64,001 square feet of positive absorption and a 14.4% vacancy. The demand for office space will soon outpace the availability in the market, making this a valuable asset. At the time of closing, it was 85% leased.
“OakPoint is a great owner and is planning significant renovations and upgrades to both buildings. They are excited to enter the market with these purchases after spending significant time searching for value in Austin,” said Luke Wood of Haverwood Management, LLC. “With the coming upgrades and limited vacancy in Northwest Austin, we expect the large blocks of space to lease up quickly. Several tenants already expressed significant interest prior to closing.”
“This acquisition was perfectly timed to take advantage of the current upswing in the Austin market,” said Walter Saad, a first vice president with CBRE. “Our economists project a tightening market and double digit increases in rental rates over the next two years. Those kind of rate increases, coupled with little new construction, bodes well for the buildings.”
Saad and Cathy Nabours, with CBRE Austin, represented the seller. Wood, with Haverwood Management, represented the buyer.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.