Newly-Renovated Downtown Austin Office Tower Trades
823 Congress, a 190,254-SF office and retail property, has been acquired by DRA Advisors and Pillar Commercial.
AUSTIN, TX – A fund controlled by New York-based DRA Advisors LLC and Dallas-based Pillar Commercial has acquired a newly-renovated, 190,254-square-foot office and retail property in downtown Austin, TX.
The acquired property, 823 Congress, is currently 71% leased to a mix of tenants. The property features an average 11,000-square-foot floorplate.
The mixed-use property recently underwent more than $15 million in property renovations, which included updates to the building entrance, lobby, common areas, fitness center, conference facility and tenant lounge. The asset additionally includes a six-story parking garage located at 900 Brazos St.
Situated on the southeast corner of Congress Ave. and 9th St., 823 Congress is located three blocks south of the Texas State Capitol and less than a mile from the University of Texas’ main campus. The property is situated near the 6th St. Entertainment district, the Innovation district and the medical district.
DRA and Pillar plan to invest capital at the property as part of a broader repositioning strategy.
The transaction represents Pillar’s first investment in Austin through its Pillar Real Estate Fund I discretionary vehicle.
“It’s a real privilege to partner with DRA Advisors on this high-profile asset in downtown Austin,” says Manny Ybarra, Pillar Commercial founder and CEO. “Texas continues to be a top site selection destination for companies representing a wide range of industries, with Austin being a top-tier market within the state.”
Newmark’s vice chairmen Chris Murphy, Robert Hill and Gary Carr and director Chase Tagen represented the seller in the transaction. The firm’s vice chairman David Milestone, senior managing director Brett Green and director Josh Francis facilitated the financing for the buyer.
“823 Congress’ appeal is driven by its boutique size floorplates—catering to users seeking the prestige of full-floor occupancy—and its walkability to the Fortune 1000 companies that continue to gravitate to Downtown Austin,” says Murphy. “The average floorplate being developed in the Domain, East Austin and South Austin is a minimum of 20,000 square feet, due to height restrictions and higher land prices. This makes 823 Congress’ physical attributes very appealing, truly a building that will never be built again.”