AUSTIN, TX-Stream Realty Partners has acquired Plaza 35, a two-building, flex-space project, out of foreclosure and has enticed a new tenant to fill a portion of the 185,485-square-foot property.
Stream put the distressed property under contract when it was 100% vacant, but during escrow, it nailed down a tenant, VirTex Assembly, for the 62,719-square-foot Building A. The 122,766-square-foot Building B, which formerly housed Dell Financial Service’s call center, is still empty.
Stream bought Plaza 35, which is located near Interstate 35 and Parmer Lane in the North Austin submarket, from C3 Asset Management. The special servicer foreclosed on the property in mid-2010 after the previous owner, Irvine, CA-based Chase Merritt, was unable to continue to service the debt. The purchase price was undisclosed, but a local expert says 11-year-old property sold for less than $10 million.
Stream was one of nine investors that made an offer on Plaza 35, according to Todd Savage, a managing director in HFF’s Dallas office. He marketed the property on behalf of the special servicer, along with Andrew Levy, a senior managing in HFF’s Dallas office.
Stream closed the Plaza 35 deal on an all-cash basis, according to David Blackbird, a co-managing director with Stream’s local office. “We’re comfortable dealing in the distressed space, and we feel confident about our basis in the property,” he tells GlobeSt.com, adding that the firm feels good about finding a tenant for the remaining vacant space. “We feel in a rapidly improving market we’ll be able to see some demand.”
Blackbird points out that Plaza 35 is unique among other distressed assets. “There are some distressed buildings in Austin, but most of them are in shell condition,” he explains. “Plaza 35 has been heavily built-out and has a lot of infrastructure including back-up generators and raised floors.”
Stream’s leasing team consists of Daniel Farrar and Kevin Granger.
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