Investors Show Affinity in a Big Way for Office Buys

Valor Capital Partners purchased both buildings from OakPoint.

AUSTIN, TX—Investment partnerships are bullish about the Austin office market, aggressively seeking additional buying opportunities. This has never been more apparent than with the sale of two stabilized class-B office buildings totaling 124,310 square feet. New York-based Valor Capital Partners purchased the Briarcroft Building and 9101 Burnet from Nashville-based OakPoint Real Estate for an undisclosed price. Valor Capital now owns four multi-tenant office buildings in Austin, with the latest office purchases representing the second investment transaction in six months. OakPoint Properties and local operating partner Haverwood Management are also committed to investing in Austin and have been extremely active in that timeframe, including three acquisitions in December: Enterprise Plaza, Park Place office buildings and Donley Plaza . Logan Reichle , associate, CBRE, tells GlobeSt.com: “The demand for office investment properties in Austin is higher than we have seen in past cycles. Experienced, out-of-town buyers and traditional local investors alike are excited about the growth in Austin and eager to acquire properties here. Tenant demand and high lease rates in the Domain are creating demand for space in areas that have not traditionally been strong office markets. The North Central Burnet corridor along US Highway 183 and La Frontera in Round Rock have both become desirable submarkets.” First vice presidents, Walter Saad and Cathy Nabours, along with Reichle in CBRE’s Austin office, represented the seller. The Briarcroft Building is a 63,825-square-foot, multi-tenant office building at 12710 Research Blvd. The asset is 100% occupied by a diverse blend of tenants, including Hellas Construction and Mx Toolbox . Recent capital improvements to the property include lobby upgrades, restroom renovations, elevator modernization, landscaping and HVAC efficiency upgrades. “Valor now owns four multi-tenant office buildings in Austin. Roy Bajtel and his partners are bullish about the Austin office market and are aggressively seeking additional buying opportunities,” said Saad. The other asset, at 9101 Burnet Rd, comprises 60,485 square feet and is 100% occupied. Notable tenants include Schneider Electric and Arrow Electronics . Recent capital improvements include lobby improvements with ceiling replacement, new LED lighting throughout, new carpeting, recessed sprinkler heads and a new energy management system. “OakPoint Properties purchased 9101 Burnet and the Briarcroft Building through our team in June 2013 and repositioned the properties with major upgrades to the common areas, lobbies and tenant suites. The new owner will profit from these improvements as future tenant leases are signed,” said Nabours.