Jan Buchholz
Senior Staff Writer | Austin Business Journal

Most weeks I write my Real Estate Roundup column for Austin Business Journal based on deals sent to me by participating brokers. There has been a frenzy of transactions this summer — no lazy days in the commercial real estate world.

But there have been some big deals that passed by unnoticed — until now.

One of the biggest commercial real estate transactions this year closed under the radar recently when TA Realty, a private investment firm in Boston, bought another major commercial property in Austin.

TA Realty — which most recently purchased the Oaks at Lakeway shopping center in February from Stratus Properties— purchased Lamar Union from Greystar Real Estate Partners. As is customary in Texas, the purchase price was not disclosed, but the Travis Central Appraisal District most recently valued the new mixed-use development at South Lamar Boulevard and Treadwell Street at a whopping $149,819,000.

The project has been one of Austin’s most successful post-recession redevelopments, which includes luxury apartments, boutique restaurants and shops and an Alamo Drafthouse Cinema. A collaboration of BOKA Powell and Michael Hsu Office of Architecture designed the development.

Other tenants include Shake Shack, Cafe Medici, Finley’s Barbershop, Jose Luis Salon & Boutique and Optique, to name a few.

An interesting restriction, in addition to the deed, is filed at the Travis County Clerk’s office. That document shows that the new owner — a legal entity named FHF 1 Lamar Union LLC — is forbidden from converting the apartment portion into condominiums.

“Therefore if the condominium conversion restriction is breached, the parties have agreed that declarant shall be entitled to liquidated damages in the amount equal to $9.5 million,” the restrictive covenant reads.

Information culled from research company Real Capital Analytics indicates that CBRE Group Inc. brokered the transaction.

Greystar, meanwhile, is busy developing apartments at the redeveloped Highland Mall and the Overture Mueller projects — a luxury community for adults over 55. The company also manages many upscale communities on behalf of other owners.

Another key commercial real estate deal that also recently closed is in the downtown core. Riverside Resources Corp., the local developer with a wide range of projects, has finalized its acquisition of 300 Colorado St. — the current site of Sullivan’s Steakhouse.

Based on information on the city of Austin development website, Riverside Resources is planning a multifamily high rise with street-level retail.

Government documents show the property changed hands June 9. The seller was Big Steak LP, which currently operates the restaurant, and the purchaser formed by Riverside Resources was Austin 3C Venture LP.

The price, as is the custom in Texas, was not disclosed. The Travis Central Appraisal District most recently appraised the 11,776-square-foot property in downtown’s warehouse district for $6,244,680 for tax purposes.

Last but not least, here’s a quick look at six more recent deals of note, all of which were provided by Real Capital Analytics:

  • A tenants-in-common arrangement involving two entities — 422 Bastrop Hwy Ltd. and Chase Equities Inc. — purchased the Highland Pavilion Shopping Center adjacent to the massive Highland Mall redevelopment in North Central Austin. Public records show that the tenants-in-common platform is headed by prominent Austin attorney and real estate investor Jimmy Nassour. The seller is veteran Austin company Schlosser Development, which owned the property at 6700 Middle Fiskville Road since 1987, according to the Travis Central Appraisal District. Galaxy Theaters and Burlington Coat Factory are among the larger tenants. The purchase price was not disclosed but the property most recently was valued by TCAD north of $15 million. Records show that the 165,331-square-foot property sits on about 12.5 acres. The property across the street — The Linc — is another retail redevelopment, which is owned by Misuma Holdings of Beverly Hills, Calif. Schlosser, meanwhile, is busy completing Shoal Creek Walk, an office tower near the Whole Foods Market flagship store on the western edge of downtown.
  • Menlo Equities, a Palo Alto, California-based investor, purchased 3900 San Clemente office building from Austin-based HPI Real Estate Services & Investments and its partner Prudential Real Estate Investors. The 251,143-square foot building at 3900 N. Capital of Texas Highway was completed in 2007 and includes tenants Vyze, Samsung Research America Inc., Maxim Integrated Products Inc. and Innography, according to TCAD records that show the property was most recently valued at $77,666,704 for tax purposes. Menlo Equities has been particularly active in Austin the past couple of years. It purchased Champion Office Park near Capital of Texas Highway and RR 2222 from Endeavor Real Estate Group, the Amber Oaks Corporate Center
  • McWane Inc., an global industrial manufacturing company based in Birmingham, Alabama, purchased an industrial real estate portfolio from Greenfield Acquisition Partners, an East Coast private equity firm. The 522,351 square feet of space is located at 1611 Headway Circle, 9701 Dessau Road, 8700 Cameron Road, 2136 Rutland Drive, 2324 Ridgepoint Drive, 8601 Cross Park Drive and 8107 Springdale Road. It’s unknown whether McWane intends to occupy those properties, as all are currently occupied by other tenants including ATX Hackerspace Co-op, Integra LifeSciences, Tektronix, Harvey-Cleary Builders and Easterseals Central Texas, to name a few. The Travis Central Appraisal District most recently valued the seven properties for about $55 million.
  • Principal Real Estate Investors headquartered in Des Moines, Iowa, purchased Southpark Commerce Center Phase II, a 372,125-square-foot industrial project at 4509 Freidrich Lane in Southeast Austin. The seller was Hines Global Real Estate Investment Trust. Real Capital Analytics shows a confirmed price of $41.1 million. Cushman & Wakefield handled the deal. Real Capital Analytics also shows that Hines purchased the property in October 2010 for $31.3 million. Principal Real Estate has been a partner with local developers on major projects. Currently the investment firm is a partner with Trammell Crow on 500 West 2nd, the office building that will be anchored by Google’s regional offices and is nearing completion. Principal partnered with Riverside Resources on The Whitley, the first major downtown urban apartment complex completed after the recession.
  • Gramercy Property Trust (NYSE: GPT) purchased a 102,194-square-foot industrial building in South Austin in an area bubbling up with redevelopment activity. The property at 210 E. St. Elmo Road is near the Saint Elmo Public Market mixed-use project, which still seems to be in play based on development documents filed at the city of Austin. The 210 E. St. Elmo property was acquired from Veritiv Operating Co. of Atlanta, which had held the asset for a little more than a year. The purchase price is unknown but the Travis Central Appraisal District most recently valued the warehouse built in 1961 at $5.5 million.
  • Longpoint Realty Partners, a private equity firm in Boston, purchased Stassney Heights shopping center at the northwest corner of Stassney Lane and I-35. The 102,916-square-foot property is anchored by Fiesta Mart and Lowe’s Home Improvement. The seller was Blackstone Group, the global investment giant that acquired that property as part of a larger retail portfolio in May 2016. No purchase price was disclosed but the Travis Central Appraisal District most recently valued the property at more than $22 million.

Original article here

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