The Week in Deals
Construction started last week on the new luxury Hotel Granduca Austin on a hillside at the northwest corner of Bee Cave Road and Loop 360, adjacent to Dimensional Fund Advisors. The project is a JV between Houston-based Interfin Cos and Riverside Resources of Austin. Riverside Resources is also developing a seven-story office complex and adjacent parking garage in conjunction with the 194-room hotel, which is scheduled for completion in late 2015. Gromatzky, Dupree & Associates of Dallas is the architect. Ermy Borlenghi Bonfield of 3-E Designs of Houston is handling interior design. HFF’s Doug Opalka, John Bourret, and Casey Wenzel arranged $33M in construction financing for the hotel development through IBC Bank.
Fitness International plans to build two new LA Fitness clubs in Austin and two locations in San Antonio. Venture Commercial Real Estate’s John Zikos, Jonathan Cooper, and Chris Booras repped LA Fitness in each of the four transactions, working with Walt Brown Jr. and Tim Dollander of Diversified Partners, master brokers for LA Fitness in the Southern US. In Austin, LA Fitness signed a lease and is expected to begin construction immediately on a 40k SF facility at 2020 W Anderson Ln. Retail Solutions’ Alan Rust represented the landlord. The other Austin deal features a 46k SF facility at 4001 S. Lamar Blvd, where LA Fitness will join Wheatsville Food Co-op. The Weitzman Group’s Adam Zmiel repped the landlord. Construction is expected to start immediately. In San Antonio, LA Fitness purchased a six-acre tract and started construction on a 45k SF facility at the southwest corner of Loop 1604 and Bulverde Road. H-E-B will anchor the development with a large-format store. Fulcrum Property Group’s Adam Schiller represented the landlord. A lease was inked at the other San Antonio location at the northwest corner of Loop 1604 and Blanco Road. Construction starts immediately for the 45k SF facility. REATA Real Estate Services’ Thomas Tyng repped the landlord.
Alamo Junction Rail Park broke ground on its 400-acre master-planned rail-served industrial park in the Eagle Ford and San Antonio region in Elmendorf. The project was developed by National Property Holdings and Rail Logix. The facility is located with access via I-37 South, Loop 1604 and Hwy 181.
Cousins Properties signed three new leases (110k SF) in Colorado Tower in Austin bringing the building to 51% leased. The building will deliver in December. Oxford Commercial’s Rachel Coulter and Kevin Kimbrough repped the landlord in the deals.
•Hawkeye Partners leased 12k SF and was represented by Jim Crouch.
•Atlassian leased 24k SF and was represented by JLL’s Jeff Pace and Jake Ragusa.
•Parsley Energy leased 74k SF and was represented by CBRE’s Will Douglas and Nathan Lawrence and Studley’s Jim Bell.
Korcett leased 18k SF at 12912 Hill Country Blvd. Korcett was represented by JLL’s Ryan Bolhs. The landlord, Hill Country Galleria, was represented by Peloton’s Kevin Granger.
Gallagher Benefit Services renewed its 10k SF lease at at 221 W 6th St. The tenant was repped by Colliers International’s David Wetherington. The landlord was repped by Peloton’s Matt Frizzell and Kevin Granger.
BMC Capital’s Patrick Short arranged a $6M cash-out refinance loan for a multifamily property in Austin. The loan features a 10-year fixed rate at 4.81% and a 30-year amortization. BMC arranged a permanent FNMA DUS loan to take out the existing bridge loan, returning the majority of the original cost to acquire and rehab the property to the client.
LMI Capital’s Ken Lawrence arranged $14M for the refinance of a 100k SF shopping center in east Austin. The unanchored retail center features a mix of local and national tenants. As the infill property is in the path of redevelopment, the borrower prioritized a non-recourse loan that would allow a cash-out on a portion of equity while still retaining maximum flexibility going forward.
Westmount Realty Capital acquired a 547k SF portfolio of 13 buildings within Braker Center in Austin. The portfolio is located between I-35 and MoPac Expressway, in close proximity to The Domain. The portfolio has been institutionally managed and maintained. It is 88% occupied. The new owners plan a $1.5M architectural facelift and the property will be rebranded The Offices at Braker Center. It will be transitioned to a full-service office property. The Braker portfolio was purchased from Granite Properties of Dallas and Endeavor Real Estate Group of Austin. CBRE’s Jack Fraker, Josh McArtor, Jonathan Bryan, and Heather McClain Venegoni represented the seller. Northmarq’s Dallas office assisted Westmount with procuring the debt.
Inland American purchased the 243k SF Westover Marketplace Shopping Center at Loop 410 and Hwy 151 in San Antonio from Coventry Real Estate Advisors for an undisclosed price. The center is 93.4% occupied.CBRE’s Chris Cozby, Chris Gerard, and Kevin Holland represented the seller. CBRE’s Graham Ketchum, Gene Williams, and John Wright repped the seller in leasing the shopping center.
DivcoWest purchased of The Avallon (318k SF Class-A office campus) in Austin. At 88.4% occupied by 19 tenants, DivcoWest plans to rebrand the property by adding new signage and updated indoor common areas
Long View Equity Partners purchased the 19k SF Christus Santa Rosa Physicians’ Ambulatory Surgical Center at 1738 E Common St in New Braunfels. CBRE’s Scott Herbold repped the sellers. The single-tenant asset is 100% occupied by a partnership between Christus Santa Rosa and multiple physicians.
Carey Watermark Investors acquired the 296-room Hyatt Place Austin Downtown at 211 E 3rd St in Austin for $87M.
Rockspring Capital acquired a 7.6-acre site in the Westover Hills development on Rogers Road near Mt. Evans in Northwest San Antonio. The potential uses for the site include office, data center, medical and multifamily.
Blake Sheppard joined CBRE as associate director of San Antonio’s property and facilities management operations. He will lead staff responsible for 3.4M SF of Class-A office, retail and industrial properties.