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AUSTIN-In an off-market transaction, Westmount Realty Capital has sold a 206,522-sf flex portfolio to a San Diego-based partnership for about $100 per sf. The seller acquired Braker Centers 6, 7 and 11 in September 2006.

Steven Kanoff, principal with Dallas-based Westmount Realty Capital, says the 93%-leased buildings, located at the intersection of Metric Boulevard and Braker Lane, were never meant to be long-term holds. The assets would have been marketed soon if Braker Metric Austin LP hadn’t come along. “It was a value-add opportunity from the beginning. That was the business plan,” he says. “This time, the business plan worked.”

The business plan included property upgrades like landscaping, new signs and architectural features, including metal canopies. And, putting in Dallas-based TIG Real Estate Services’ Austin team to lease and manage the 38,825-sf Braker Center 6 at 11211 Metric Blvd.; 111,031-sf Braker Center 7 at 11100 Metric Blvd.; and 66,666-sf Braker Center 11 at 2205-27 Braker Blvd.

During Westmount’s tenure, TIG negotiated more than 140,000 sf in leases for the three buildings. “They were very instrumental in helping us, especially on the leasing side,” Kanoff says. “David Alsmeyer, the leasing broker, represented the property and did a tremendous job.”

Kanoff tells GlobeSt.com that Westmount acquired the portfolio in 2006, inheriting an 18-month lockout on the loan repayment and 28% occupancy. Last fall, the buyer approached Westmount, asking if a presale might be in the cards. “We made the arrangements then to have the closing coincide with the lockout date,” Kanoff explains.

Kanoff says that the Braker investment exceeded Westmount’s expectations. The buildings were leased up ahead of schedule and rents exceeded the company’s pro forma by 20% to 25%.

“We hit the market right, and had the right product,” Kanoff says. “All the stars were in alignment and it worked out well for everyone.”

Jud Clements, a director in Dallas with Holliday Fenoglio Fowler LP, brokered the transaction. Charlotte, NC-based Bank of America Corp. provided senior debt and Alex Brown Investment Management LLC of Baltimore supplied the equity.

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