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AUSTIN-The Scheffe Group is adding to its stable of office condominium projects with the Parkstone Office Centre at 1800 S. Capital of Texas Highway. The 28,000-sf building takes the last spot for an office project along Capital of Texas Highway south of Bee Cave Road and it’s the only one on the north side of the road.

Travis Dunaway, a member of the Scheffe Group’s commercial division, tells GlobeSt.com that the company is marketing the project with a price of $185 per sf and a $25 per sf finish-out allowance. “I’m selling condominium units at $200-a-foot right now,” he says. “So we think we’re being pretty aggressive with the pricing.”

Delivery is set for late next summer or early fall, Dunaway says. Cornerstone Architects Group has designed the building and will develop it. “We’ve done quite a few of these things in the last 4 1/2 years and this is going to be identical to what we’ve done,” Dunaway says.

In the past three years, Scheffe has been involved with the development of three condo projects including Juniper Ridge, a 25,000-sf office condo project in Bee Cave. The Parkstone project faces competition from a gallery of for-lease signs up and down Capital of Texas Highway. The office vacancy rate in the southwest submarket was 23.6% at the end of the third quarter.

Dunaway says low-interest rates and a scarcity of office condo projects will help sell the Parkstone project. “All those people who are finding out they can finance this stuff for less than 6% and get rid of their landlords, they’re doing it,” Dunaway says.

The Scheffe Group thinks professional services firms such as lawyers, architects, insurance companies will be interested in the property, especially those business owners looking to take money from the stock market and put it into real estate. “This is just a perfect way to do it.” Dunaway and Jeffrey Lovaas are marketing the project for Scheffe.

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