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Dividend Capital Buys Pair of Class A Office Buildings

23 Jan 2015, 6:09 pm

By Anca Gagiuc, Associate Editor

Dividend Capital Diversified Property Fund (DPF) has expanded its footprint in Austin, acquiring two Class A office buildings from Lincoln Property Co. Totaling 155,000 square feet, the assets sold for $37.3 million, Denver-based DPF announced on Jan. 21. That equates to about $240 per square foot.

Dubbed Rialto I and Rialto II, the buildings are located at 7500 Rialto Blvd. near the intersection of Southwest Parkway and William Cannon. The properties also include a 205-space parking structure. At the time of the sale Rialto I and II were 94 percent leased to 21 tenants.

“The acquisition of Rialto I and Rialto II adds to DPF’s presence in the Austin . . . market, and is consistent with our stated acquisition strategy of buying high quality buildings in select markets characterized by what we believe are strong long-term fundamentals,” said Diversified Property Fund CEO Jeff Johnson in a statement.

DPF funded the purchase using cash on hand and financing provided by its revolving credit facility. Andrew Levy, Kelsey Roop, Todd Savage, and Patrick McCord of HFF represented the seller.

Photo courtesy of Regus

Ashford Trust to Buy Lakeway Resort for $33.5M

20 Jan 2015, 3:08 pm

By Anca Gagiuc, Associate Editor

Austin’s diversified economy, dynamic high-tech sector and growing tourism industry is drawing attention from hotel investors. Recently, Dallas-based Ashford Hospitality Trust announced an agreement to acquire Lakeway Resort & Spa for $33.5 million from a joint venture of Dow Hotel Co. and the Carlyle Group.

The deal is expected to close in the next 30 days, and Remington Lodging will assume management dutiees.

Located in Austin’s northwest corridor near Lake Travis and the city’s downtown, Lakeway Resort was completed in 1966 and expanded in 2001 and 2007. Last year the property underwent a $6 million renovation that featured an upgrade of the guestrooms. The 168-key hotel includes four separate buildings, approximately 24,000 square feet of meeting space and four large flexible ballrooms. The hotel also controls eight luxury condominium units through a rental pool agreement.

Amenities include full-service spa, 24-hour fitness center, three swimming pools, a full-service restaurant, and access to golf, tennis and the Lakeway Marina. The resort offers convenient access to Austin’s 4,400 technology companies and plenty of choices for recreation.

Photo courtesy of Lakeway Resort & Spa.

Moody National REIT Acquires Hilton Garden Inn

12 Jan 2015, 9:20 pm

By Anca Gagiuc, Associate Editor

The Hilton Garden Inn Austin NW/Arboretum is under new ownership as Moody National REIT has completed its previously announced intention to acquire the 138-key property. Holliday Fenoglio Fowler, which marketed the hotel on behalf of the seller, announced the closing of the transaction. Moody purchased the hotel free and clear of existing debt.

The hotel is located at 11617 Research Blvd. near the intersection of U.S. 183 with Loop 1 (MoPac Expressway) in the North/Northwest Austin submarket. Major employers in the area include Google, Apple, IBM, Dell, National Instruments, HP, Xerox, Oracle, and Cisco. Several of Austin’s major retail centers are also nearby, such as The Arboretum and The Domain, the city’s largest mixed-use development.

Opened in 2002 and renovated last year, the Hilton Garden Inn Austin NW/Arboretum offers 87 king rooms and 43 double rooms averaging 350 square feet, plus four king suites and four double suites averaging 600 square feet.

Amenities include a fitness center, 1,242 square feet of meeting and event space, 24-hour business center, outdoor patio areas, and indoor pool and whirlpool.

The HFF team that arranged the transaction was led by Dan Peek, senior managing director and head of HFF’s hotel group; managing director John Bourret; and real estate analysts Austin Brooks and John Callahan.

Photo courtesy of Hilton Garden Inn Austin NW/Arboretum.

Civitas Senior Living Announces Plans for New Senior Living Community in Southwest Austin

22 Dec 2014, 7:21 pm

By Anca Gagiuc, Associate Editor

A new senior lifestyle apartment community, owned by Civitas Senior Living LLC, will be breaking ground in Austin. Ledgestone Senior Living will offer not only independent and assisted living apartments, but also a memory care cottage; the complex will enter the construction phase in June 2015, becoming the seventh property in the company’s portfolio.

Trepex Construction Inc. will be the general contractor, with its founder Brent Hammond, a Dripping Springs area local resident, leading the construction team. Once finalized, the managing responsibilities will be handled by Civitas, under the leadership of Wayne and Misti Powell, the president & CEO and vice president of clinical services respectively.

The development’s architectural plan includes 120 independent senior lifestyle apartments, approximately 60 assisted living studios and one-bedroom units, and 10 private and semi-private memory care units. The community’s amenities will include a pool, gym, spa, wellness center, walking trails, club house, and landscaped grounds. The independent units will feature balconies, island kitchens, and several floor plans of 1, 2, and 3 bedroom apartments with walk-in closets.

Ledgestone Senior Living will be privately owned. “Our small company platform allows us to provide large company services with the attention to detail of a local owner,” said Wayne Powell, President of Civitas Senior Living.

Trammel Crow Company, Principal Real Estate Investors, and City of Austin Begin Second Phase at Thomas Green Water Treatment Plant

15 Dec 2014, 4:11 am

By Anca Gagiuc, Associate Editor

Trammel Crow Company in partnership with Principal Real Estate Investors announced the acquisition from the City of Austin of the Green Water Treatment Plant (GWTP) lot known as 500 W 2nd Street in downtown Austin. Construction of a 29-story office tower is scheduled to begin immediately, with the finalization date set for the first quarter of 2017.

The development will encompass 500,436 square feet, featuring 489,403 square feet of Class A speculative office space and 11,033 square feet of restaurant/retail space on the ground floor. Taking after the Second Street District, the ground floor is designed to offer high ceilings and outdoor/sidewalk dinning locations. The floor plates of the project will average around 32,500 square feet, placing the project among the largest in downtown Austin.

The tenants will benefit from seven outdoor terraces on six different levels throughout the building. Two parking levels underground and 12 levels above grade with access from San Antonio and Nueces Streets are included in the architectural plan. The development aims at receiving LEED Gold certification and an Austin Energy Green Building 2-Star rating.

On the 14th floor there will be a tenant amenity space with a flexible 8,628-square foot conference center and a great room, plus a 2,739 square feet outdoor terrace. Moreover, an expansive fitness center with locker rooms and showers will be placed on the mezzanine level.

500 W 2nd Street represents the second phase of the four phases of a master project for the former Thomas Green Water Treatment Plant. Once finalized, the master planned development will add more than 1.7 million square feet of mixed-use commercial development.

“We are pleased to officially kick off the second phase of the Green Water Treatment Plant redevelopment with our partner, Principal Real Estate Investors and the City of Austin,” says Adam Nims, Principal with Trammell Crow Company’s Austin Business Unit. “500 W. 2nd Street offers an irreplaceable location in the middle of the thriving  2nd Street mixed-use neighborhood, and a design that provides large efficient floor plates, incredible views, advanced building systems and infrastructure, and unmatched amenities to prospective tenants.”

The development was designed by the Austin office of Gensler; the general contractor for the project is Beck Commercial Construction. Adam Nims, Aaron Thielhorn, Brad Maples and Mark Fowler with Trammell Crow Company and Joe Wanninger from Principal Real Estate Investors will lead the development team. Leasing will be handled by Troy Holme, Casey Ford and Katie Ekstrom with CBRE Austin.

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