Iconic Seaholm Plant Appeals to Institutional Capital

AUSTIN, TX—Built in the 1950s and redeveloped in 2015, the iconic Seaholm Power Plant has a distinctive art deco architecture. It is a three-building creative office/mixed-use project located in a walkable live work play environment at 800 Cesar Chavez, 211 Walter Seaholm Dr. and 222 West Ave.

On the waterfront at the southwestern edge of downtown Austin, bounded by Cesar Chavez Street, West Avenue, Third Street, Seaholm Drive and the A&NW rail line, and directly across the street from Lady Bird Lake, Seaholm is located on 5 acres in Austin's vibrant urban core. The population within a mile of Seaholm is more than 3,300 residents and rapidly growing.

Sources say the 209,176-square-foot building was sold for approximately $125 million to Clarion Partners. The sellers were CIM Group and Seaholm Power LLC.

The centerpiece of the project is the repurposed and formerly long-dormant historic power plant. The five acres surrounding the power plant were transformed into a mixed-use urban oasis offering 1.5 acres of public open space and a plaza. Construction began on the project in April 2013, with four floors of open, creative office space designed for its major tenant, athenahealth. The healthcare company opened its doors in February 2015 and comprises an 89% lease through January of 2030.

Boiler Nine Bar + Grill, a 10,000-square-foot restaurant spanning all four levels, is also part of the redevelopment. It includes Deck Nine Observatory Bar, a roof top bar with expansive views of Austin and Lady Bird Lake, and The Boiler Room, a subterranean den near the original boiler room.

A newly constructed two-story 68,000-square-foot low-rise contemporary glass and steel building includes 35,000 square feet of office space for MapMyFitness and 33,000 square feet of ground floor retail space anchored by a Trader Joe's grocery store. The low-rise office and retail building were completed in 2015.

The ground floor retail space below the 30-story, 280-unit Seaholm Residences with the 7,000-square-foot True Food Kitchen was also included in the sale. Those residences were not a part of this transaction.

“We listened to the community and the market–and together, saved a historic icon. Today, I see nearly every aspect of life being lived on Seaholm's grounds and it's the most incredible feeling,” says John Rosato, principal with Southwest Strategies Group and managing partner for Seaholm Power LLC. 

Seaholm Power LLC consists of a joint venture comprised of principals from Southwest Strategies Group, Centro Development, State Street Properties, La Corsha Hospitality and Capital Project Management. The team was selected by the city of Austin to redevelop the site. CIM Group joined Seaholm Power LLC as co-developer and worked together with the city in a public-private partnership.

“We are very pleased that the Seaholm redevelopment is meeting the expectation of being the fulcrum development that is transforming the Seaholm district in southwest downtown Austin into a vibrant urban community,” said Avi Shemesh, principal and co-founder of CIM Group. 

Kevin Shannon, president, west coast capital markets and Ken White of NGKF Capital Markets, along with CBRE's Todd Mills and Hunter Mills represented the seller and the buyer.

“Seaholm represents what core institutional capital wants: it's a best of class asset located in a cool, vibrant, growing CBD location. CIM did an amazing job of converting a power plant to a creative campus appealing to institutional capital,” Shannon tells GlobeSt.com. “Core portfolios are looking to add this type of property because they are overweighted with class-A space.”   

The city of Austin notes the sale signifies the materialization of a double bottom line for citizens: saving a historic structure while significant city contributions are reimbursed.

“In the end, we regard this as a very successful project in that it achieved the goal of preserving the historic power plant for future generations at little or no cost to the city, while bringing new energy, jobs and economic development to a once derelict industrial district,” says Kevin Johns, director of Austin's economic development department. 

AUSTIN, TX—Built in the 1950s and redeveloped in 2015, the iconic Seaholm Power Plant has a distinctive art deco architecture. It is a three-building creative office/mixed-use project located in a walkable live work play environment at 800 Cesar Chavez, 211 Walter Seaholm Dr. and 222 West Ave.

On the waterfront at the southwestern edge of downtown Austin, bounded by Cesar Chavez Street, West Avenue, Third Street, Seaholm Drive and the A&NW rail line, and directly across the street from Lady Bird Lake, Seaholm is located on 5 acres in Austin's vibrant urban core. The population within a mile of Seaholm is more than 3,300 residents and rapidly growing.

Sources say the 209,176-square-foot building was sold for approximately $125 million to Clarion Partners. The sellers were CIM Group and Seaholm Power LLC.

The centerpiece of the project is the repurposed and formerly long-dormant historic power plant. The five acres surrounding the power plant were transformed into a mixed-use urban oasis offering 1.5 acres of public open space and a plaza. Construction began on the project in April 2013, with four floors of open, creative office space designed for its major tenant, athenahealth. The healthcare company opened its doors in February 2015 and comprises an 89% lease through January of 2030.

Boiler Nine Bar + Grill, a 10,000-square-foot restaurant spanning all four levels, is also part of the redevelopment. It includes Deck Nine Observatory Bar, a roof top bar with expansive views of Austin and Lady Bird Lake, and The Boiler Room, a subterranean den near the original boiler room.

A newly constructed two-story 68,000-square-foot low-rise contemporary glass and steel building includes 35,000 square feet of office space for MapMyFitness and 33,000 square feet of ground floor retail space anchored by a Trader Joe's grocery store. The low-rise office and retail building were completed in 2015.

The ground floor retail space below the 30-story, 280-unit Seaholm Residences with the 7,000-square-foot True Food Kitchen was also included in the sale. Those residences were not a part of this transaction.

“We listened to the community and the market–and together, saved a historic icon. Today, I see nearly every aspect of life being lived on Seaholm's grounds and it's the most incredible feeling,” says John Rosato, principal with Southwest Strategies Group and managing partner for Seaholm Power LLC. 

Seaholm Power LLC consists of a joint venture comprised of principals from Southwest Strategies Group, Centro Development, State Street Properties, La Corsha Hospitality and Capital Project Management. The team was selected by the city of Austin to redevelop the site. CIM Group joined Seaholm Power LLC as co-developer and worked together with the city in a public-private partnership.

“We are very pleased that the Seaholm redevelopment is meeting the expectation of being the fulcrum development that is transforming the Seaholm district in southwest downtown Austin into a vibrant urban community,” said Avi Shemesh, principal and co-founder of CIM Group. 

Kevin Shannon, president, west coast capital markets and Ken White of NGKF Capital Markets, along with CBRE's Todd Mills and Hunter Mills represented the seller and the buyer.

“Seaholm represents what core institutional capital wants: it's a best of class asset located in a cool, vibrant, growing CBD location. CIM did an amazing job of converting a power plant to a creative campus appealing to institutional capital,” Shannon tells GlobeSt.com. “Core portfolios are looking to add this type of property because they are overweighted with class-A space.”   

The city of Austin notes the sale signifies the materialization of a double bottom line for citizens: saving a historic structure while significant city contributions are reimbursed.

“In the end, we regard this as a very successful project in that it achieved the goal of preserving the historic power plant for future generations at little or no cost to the city, while bringing new energy, jobs and economic development to a once derelict industrial district,” says Kevin Johns, director of Austin's economic development department.