Office Purchase Becomes Redevelopment for Tech Users

Donley Plaza recently sold to OakPoint Real Estate and Haverwood Management.

AUSTIN, TX—With a marketing plan in place targeted to large corporate users seeking value office space in and around the North Austin/ Domain submarket, an asset has sold to a team that is becoming well known in the area. Donley Plaza , a 69,547-square-foot office property has sold to Nashville-based OakPoint Real Estate and local partner Haverwood Management . The joint venture purchased the asset from a California-based partnership for an undisclosed price. Donley Plaza marks the fifth office acquisition in Austin for the OakPoint/Haverwood duo. Walter Saad, Cathy Nabours and Logan Reichle with CBRE’s Austin office represented the seller. “OakPoint Properties and local operating partner Haverwood Management continue to make a name for themselves in the Austin investment market with the acquisition of Donley Plaza,” said Saad, CBRE first vice president. “The building’s high parking ratio combined with zoning that allows for higher density in the North Burnet Gateway overlay should prove to increase overall future value for the group.” Donley Plaza, located at 2201 Donley Dr. in North Central Austin, was 65% occupied at the time of closing. It was constructed in 1983 and renovated in 2013. The buyer has an immediate opportunity to lease one full floor of the building in a location just east of the Domain, a vibrant mixed-use community. Saad tells GlobeSt.com: “Following the sale of Westlake Place in August of 2015, our team was happy to work with the same seller to divest Donley Plaza, the last jointly held Austin office building for the California-based partnership.” To capitalize on the property’s dense parking ratio and proximity to public transportation, OakPoint and Haverwood are partnering with a local architecture firm to redevelop the property for creative and tech-oriented users. Additionally, the new ownership group is in the early planning stages for a large build-to-suit on the adjacent vacant site. “There’s an interesting shift happening as more office tenants recognize value in North Central Austin. Landlords deviating from traditional drop-ceilings and hard-wall offices are attracting technology-focused tenants that are deterred by the more expensive options along Mopac and at the Domain. Rates and occupancies continue to climb in this submarket along with demand,” said Nabours, CBRE first vice president.