AUSTIN, TX-Karlin Real Estate has acquired a vacant 301,644 square-foot corporate headquarters and manufacturing facility from Dell USA L.P. The buy marks the California-based firm’s entry into Texas.
“This is our first purchase in Texas, and we are looking at a number of different opportunities in the state,” says Matthew Schwab, managing director of Karlin Real Estate. “This one is a good one to start with as we’ve had our eye on Austin for a good period of time. We focus on markets where we think there is great job growth and great intellectual capital, which we see in Austin.”
Schwab declined to disclose the purchase price for the property, but noted that price will allow the firm to offer very competitive lease rates. “We bought the property at a basis that is going to give us the best chance to land a really quality tenant in the building,” he explains, telling GlobeSt.com that Karlin paid cash for the property after only a two-week due diligence period.
The facility, which was previously occupied by Dell, consists of 75,459 square feet of office space, 16,109 square feet of mezzanine warehouse space and 210,000 square feet of climate controlled cross docked warehouse space with 30-foot clear heights and 110 loading doors. It also features a full-service kitchen with indoor and outdoor dining areas, conference and meeting rooms, fitness facility and data center.
The property is situated on 28.5 acres at 210 Howard Lane in Tech Ridge, a 1.9-million-square-foot commercial and retail masterplanned development alongside Interstate 35. The area is home to Dell's North and South Parmer campuses, Applied Materials and National Computer Systems, as well as several major retail centers. Dell built the facility in 1999 for the assembly of servers and workstations for customers in North and South America.
“One of the things I really like about the property is that there’s very little in the way of competition in the market,” Schwab says. “There are a lot of smaller distribution-type buildings that are currently in the market, but nothing that has the infrastructure and all the bells and whistles that this building has including heavy power and terrific loading potential.”
Schwab says those attributes, coupled with the class A condition of the building, allows Karlin to approach leasing with several potential solutions in mind. “We can provide the flexibility to take on some of the bigger tenants and different types of uses, from office to distribution to manufacturing,” he points out.
In addition to the Austin property, Karlin also owns assets in Arizona, California, Colorado and Florida. The firm, which launched in 2008, has invested nearly $150 million in office, retail, multifamily and industrial properties.
The Dell facility was marketed by Greg Marberry, Dave Anderson and John Barksdale of CB Richard Ellis’s local office. Karlin represented itself in the transaction, but has hired CBRE to handle the leasing and management of its newly-acquired asset.
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