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AUSTIN-Intercontinental Real Estate Corp. has bought the Canyon at Wild Basin, a 75,000-sf office building in southwest Austin. Intercontinental, based in Boston, purchased the fully leased building from Denver-based Miller Global in a cash-transaction through the Intercontinental Real Estate Fund III LLC. Everyone’s hushed about the selling price.

The Canyon, located at 115 Wild Basin Rd., is just north of the Bee Cave Road-Loop 360 intersection. Designed by Phillip Ewald Architects of Houston, the building was completed in 1999. The name tenant on the building is CyberTrader Inc., an Austin-based division of Charles Schwab Corp.

Intercontinental plans to raise the building’s lease rates, which it says are below market, to match the market rates in three or four years. In a prepared statement, the company says the building is typical of those it will seek to buy with its third fund–class-A space in markets with strong barriers to entry and where properties are undervalued.

Andy Levy and Jeff Stone, both of New York-based Eastdil Realty, represented Miller Global and John Matteson, Intercontinental’s director of acquisitions, acted for his company. Yancey-Hausman, based in Houston, manages and leases the property.

Intercontinental has acquired, developed, built and managed more than $2 billion of real estate. Intercontinental’s Fund III is seeking current returns of 8% to 9% and a 15% internal rate of return.

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