Riata Corporate Park, an eight-building 688,100-square-foot office campus, recently sold in a confidential transaction.
AUSTIN, TX—Riata Corporate Park, an eight-building 688,100-square-foot office campus recently sold, according to a joint venture between Partners Group, a private markets investment manager, and Accesso, an investment manager and operator of multi-tenant office buildings. The sale price was not disclosed. The venture acquired the property in 2015.
"Partners Group had high conviction in the strength of the Austin office market when we partnered with Accesso to acquire Riata Corporate Park," said Ron Lamontagne, managing director/co-head of private real estate Americas, Partners Group. "As employers in the tech and pharmaceutical industry relocated to or expanded in Austin, attracted to the growing educated workforce, we were able to use our operational expertise to develop Riata into a highly attractive asset. Limited large block vacancies, the ability to develop an additional parcel and the credit rent roll led us to believe that this was a good time to market the property to a buyer who had a long-term vision for the asset."
Shortly after the initial acquisition in 2015, the partnership initiated a series of value-add enhancements designed to improve the tenant experience. These initiatives drove significant leasing activity that increased the property's occupancy from 85 to 99%.
"We are very pleased with the outcome of the strategy we executed at Riata and the attractive sale price reflects the significant value we created over the hold period," said Ariel Bentata, founder and managing partner, investments for Accesso. "The capital improvements we made and the strong rent roll we created at the property substantially elevated its appeal by creating a healthier and more engaging workplace for tenants, resulting in a highly desirable flagship asset for the Austin market. We look forward to continuing to work with Partners Group to identify opportunities where we can leverage our operational expertise to unlock embedded value in high-quality properties."
In addition to introducing Accesso's property management platform and performing an extensive overhaul of Riata's lobbies, corridors and restrooms, the venture implemented a number of water, energy and carbon-saving measures to reduce waste and carbon emissions.
"Following the sale of Riata, the venture's Austin portfolio includes 7700 Parmer, a four-building nearly 1 million-square-foot office campus located in the tech-centered northwest Austin region," Brian Rosen, Accesso chief investment officer, tells GlobeSt.com. "It is a short distance from the $1 billion 133-acre Apple Inc. manufacturing facility currently under construction. The Apple campus alone is expected to net 5,000 new jobs, with the capacity to grow to 15,000."
At 7700 Parmer, the venture plans to add an additional 1.5 million square feet of mixed-use space to accommodate the large influx of residents, corporations and retailers relocating to Austin. The preliminary plans are for office buildings, street-level retail and multifamily.
"Development will be completed in phases and will commence in the near future," Rosen tells GlobeSt.com.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
