Tim Scheffe of the Scheffe Group is actively looking at two sites in the Bee Cave area and one in northwest Austin for more condo projects. The company, however, doesn't have immediate plans to move on any of them.
Instead of putting up one building, the next projects probably will be developed in phases, Scheffe says. "We'll probably do three or four buildings with 10,000 sf each or less," he tells GlobeSt.com.
Juniper Ridge, a 25,000-sf office condo project in Bee Cave, is about 70% sold with the recent addition of Feste Capital to the building's roster. Feste, formerly Malachi Financial, took a 3,025-sf suite. Scheffe says the building should be sold out by the end of the year. Others in the building include financial firms Cadence Wealth Management and Valor Capital Asset Management and a law firm, dentist's office and corporate travel agency.
In the past 36 months, Scheffe says the company has been involved in the development of three condo projects and has sold 28 units. It also was involved in the Overlook, a three-building, 40,000-sf project that sold out in 30 months along Bee Cave Road.
Scheffe says condo buyers want to own their office space as a real estate investment and are using the current low interest rates to do it. "Interest rates are making the condo product really attractive," he says.
While office condos have their allure for a variety of professional firms, they are particularly suited for medical offices, Scheffe says. Medical practices looking to establish a community presence can buy a condo and not worry about moving around or renegotiating leases every few years.
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