Sometimes its all about how you package a deal that makes it more attractive (Kim Kardashian knows this well). Transwestern brokers had the PacTrust-owned, three-building Commerce Center South on the market for almost a year before the market responded.
Transwesterns Hale Umstattd tells us his team--including Leah Gallagher and Luke Wheeler-- brought the Class-A industrial portfolio and an accompanying 35-acre development site to market in summer 12 but didn't get a strong response. (Nor would we expect anything to get noticed above the "Call Me Maybe" fervor at that time.)Because the vacancy rate for the southeast submarket was higher last year, most investors looked at the land component as an additional expense with a longer anticipated hold period before spec industrial would be feasible, the brokers tell us. This year, the team opted to market the buildings based on the feedback received from buyers alone. But, since the submarket had improved, most investors saw an opportunity in the acquisition of the land component as well.
As the property in the area was absorbed and the submarket conditions improved, offers began to roll in for the buildings--and the land, Leah says. Ultimately, Stoltz Real Estate purchased the almost 156k SF flex/industrial buildings and the land (with no immediate plans for the land.) The property was 93% occupied during marketing, and the last vacant block was filled before closing. This acquisition is Pennsylvania-basedStoltzs first in Austin for SREF IV. Stoltz has plans to grow its real estate holdings in Austin--office, industrial, and retail properties.
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