Rreef Closes on 500,000-SF Braker Portfolio

AUSTIN, TX-The Braker portfolio of light industrial-flex buildings here has been acquired by San Francisco-based Rreef on behalf of one of its pension fund clients. Sold by New York-based Morgan Stanley, the half empty 495,963-sf portfolio comprises eight buildings, six of which are known as Braker Center and all of which have about a 50% office build out. All of the properties are in the area of Braker Lane and Metric Boulevard. Dell occupies one 150,092-sf building known as Braker K.The sale was brokered by Jack Fraker, a Dallas-based executive vice president with CB Richard Ellis whose team has disposed of more than $1-billion worth of properties (36 million sf) in 2004. Fraker declined to provide the sale price, but other local brokers with knowledge of the transaction tell GlobeSt.com the portfolio changed hands for just under $28 million.Fraker did tell GlobeSt.com that for Morgan Stanley’s real estate arm the sale was part of a “portfolio balancing.” For Rreef, he says the acquisition is seen an opportunity to demonstrate to a separate account pension fund client that it can recognize value-add opportunities versus just managing core assets. “Rreef relies heavily on econometrics models when making acquisitions around the country and they think Austin is a rapidly recovering market as a job center and other econometrics,” says Fraker. “The going in yield is in the low single digits but the potential is there to increase that substantially with asset management and lease-up techniques.”Rreef was represented by locally based Endeavor Real Estate Group LLC, which now has the property management and leasing assignment for the portfolio.