One of the four national Innovation Centers of General Motors Company has changed owners. Los Angeles-based Karlin Real Estate has rolled over the property located at 717 E. Parmer Lane in North Austin to Gladstone Commercial Corp. for $57.5 million, reports the Austin Business Journal. At the same time, Gladstone announced it placed a 10 year non-recourse loan through Cantor Commercial Real Estate that covers at least part of the acquisition amount.
Mark Emerick and John Barksdale of CBRE represented Karlin in the transaction. “Acquiring this high quality facility is consistent with our growth strategy,” said Buzz Cooper, senior managing director of Gladstone. “The buyer and seller, as well as lender teams, worked together seamlessly to navigate a complicated process to execute a successful transaction for all parties.”
The 320,596 square-foot multi-story building was built by Dell Inc. in 2000 and purchased by Karlin in July 2012. It’s been quite the good luck strike for Karlin which purchased the building empty of tenants but soon after the acquisition welcomed General Motors as sole occupant. Depending on the acquisition amount it paid last year, the sale that closed a few days ago can mean a high profit in this property-flipping move. Travis Central Appraisal District valued the property at around $22 million.
Gladstone Commercial Corporation is a REIT that currently owns 84 properties. Their investment interest targets leased industrial, commercial and retail real estate that generally range from $5 million to $30 million.
Photo credits: CBRE