Offices Continue to Benefit from Common Area Upgrades

Lakewood on the Park is one of the few office complexes with both structure and surface parking.

AUSTIN, TX— Lakewood on the Park is a 180,558-square-foot suburban office campus in Austin’s Northwest submarket. Built in 1998 by local developer HPI , the complex received the 2012-2013 TOBY Award from Building Owners and Managers Association for best low-rise suburban office park in Austin. Located at 7600 Capital of Texas Hwy. (Loop 360), the property features two, three-story class-A office buildings on a 9.88-acre site overlooking Bull Creek. Lakewood on the Park is one of the few office complexes in the market with both structured and surface parking. The properties are 77% leased with tenants including Centaur Technology Inc., Bulldog Solutions and USA Southwest Inc . It was previously owned by Equity Commonwealth but recently acquired by CapRidge Partners . Los Angeles-based Mesa West Capital provided financing for the acquisition and repositioning of the property. Mesa West’s $32.145 million short-term, non-recourse, floating-rate loan includes future funding for an extensive capital improvement program and leasing costs associated with the repositioning and stabilization of the property. CapRidge’s renovation plans call for the complete redesign of all common areas including lobbies, corridors and restrooms, new fitness center, tenant lounge, coffee bar and shared conference center, and upgrades to the MEP systems. Exterior improvements will include new landscaping, signage and lighting. “CapRidge Partners is a local owner with a proven track record executing similar business plans throughout the country,” said Mesa West vice president Jason Bressler , who originated the financing. “When it completes the renovation, CapRidge will be able to leverage the strong market fundamentals and leasing in the Northwest submarket by re-positioning Lakewood on the Park as a well-located value alternative to the higher priced space in competitive buildings.” The Loop 360 corridor is Austin’s strongest performing suburban submarket. Despite the addition of more than 650,000 square feet of deliveries, the area has maintained an occupancy level of 90% and rent growth of 6% during the past five years, according to HFF, which marketed the building for sale. Andy Scott and Jim Curtin in the Dallas office of HFF arranged the financing and the seller was also represented by HFF’s Dallas office. Bressler tells GlobeSt.com: “Texas is a dynamic market with positive fundamentals. And Austin specifically is benefiting from significant job growth with the expansion of technology, biotech and healthcare in the area. We are looking for other lending opportunities in Texas, especially on projects like Lakewood which can benefit from smart capital.” Through its family of debt funds, Mesa West Capital has originated approximately $400 million in first mortgage debt for the acquisition and refinancing of commercial real estate assets throughout Texas.   In 2014, Mesa West provided CapRidge with a $12.6 million loan for the acquisition and lease up of Canyon at Wild Basin , a 74,580-square-foot office complex in Austin.