Barings and B&Z Break Ground on 701 Rio

AUSTIN, TX—Real estate investment manager Barings and development group B&Z Development broke ground today on the newest downtown office property, 701 Rio. Located in one of the most desirable locations, 701 Rio will be a five-story 120,983-square-foot class-A office building with five levels of subterranean parking.

“This is a great opportunity to bolster our office footprint with an excellent partner in a well-established high growth market. 701 Rio will benefit greatly from its premier location, with excellent connectivity for professionals and new companies in the thriving Austin market,” said John Ockerbloom, Barings’ head of US real estate equity.

Onsite amenities include a rooftop terrace with views of downtown Austin, fitness center, lockers, showers, and secure bike and scooter storage.

“The design of 701 Rio is in keeping with the fabric of the neighborhood,” said Jason Berkowitz of B&Z Development. “We want it to have the look and feel of Austin’s unique personality; the creativity, the originality and the heart that make our city special.”

The property is expected to be complete in June 2021.

“The input we received from the neighborhood association and surrounding property owners was vital in developing a property that benefits the surrounding community as well as the end user,” adds partner Diana Zuniga. “We took great care to create a place that will be indicative of our community; to ensure 701 Rio is a place we as Austinites can be proud of, sharing with those who will make it part of their everyday lives.”

Austin-based Barnes Gromatzky Kosarek Architects is the architect on the project.

“Studying the neighborhood, we incorporated queues through materiality and scale to create a building that is sensitive to its context and site,” Jason Peters of Barnes Gromatzky Kosarek Architects tells GlobeSt.com. “The building serves as a bridge between the downtown CBD and the historic neighborhood with amenities that connect to the community.”

Colorado-based construction firm, Hensel Phelps, is the general contractor for the project and JLL is the exclusive leasing agent for the project. Rachel Coulter and Travis Rogers of JLL’s Austin office will be leading the leasing and marketing efforts on behalf of the ownership group.

“701 Rio fulfills a real need for premium quality office space in one of the most active markets in the US,” said Rogers. “Austin continues to see significant demand from corporate users, especially downtown–a submarket that’s remained tight for the past several years. 701 is poised to offer a cutting-edge work environment for established firms and those interested in relocating to the city.”

Zuniga and Berkowitz have purchased and refurbished commercial properties together, but this is their first ground-up office project, GlobeSt.com learns. The duo established B&Z Development for the purposes of doing this development.

“Jason and I have been working together for years,” Zuniga tells GlobeSt.com. “He came to work for me as a broker. He’s super creative and an enterprising entrepreneurial person. It wasn’t long before we started buying properties together, and this is one of many properties we bought together. The market’s so fertile. We decided this was the time to develop the property.”

Demand for downtown office is high and there is nothing else quite like this in the market, says Berkowitz.

“This is one of the original neighborhoods of Austin. That’s what makes it unique,” Berkowitz tells GlobeSt.com. “One side of the building you’re looking at beautiful trees and this historic neighborhood, and you look out to the other side and you see the CBD. It’s be best of what’s possible in downtown.”