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4/29/24
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In a recent light industrial property trade in Texas, SouthTech Business Center, a four-building, 260.1k sf Class A property in Austin, was acquired by a 1031 investor represented by MIG Real Estate. The 93% leased property, home to a mix of regional and national tenants, was sold by KBS.
SouthTech Business Center consists of four buildings on approximately 20.2 acres. All of the buildings are rear-load configured with 21' clear heights and145' truck courts, with significant climate-controlled warehouse space and specialized build-outs across the tenancy.
“Austin continues to be a solid market for commercial real estate investors,” says Gio Cordoves, regional president, Western U.S., for KBS. “Over the last 10 years, SouthTech Business Center had an impressive average annual occupancy of 97%. The property presents an immediate opportunity for value-creation by leasing the last 7% of space available and elevating rents along with the rest of the market.”
According to JLL's fourth quarter 2023 Austin industrial market report, Austin has been the second fastest-growing industrial market in the United States since 2019, having increased by 27 msf, or by 51.7%. Half of the total square footage that was delivered in the past five years occurred in 2023 alone due to the completion of significant projects like Tesla’s 4.5 msf Gigafactory, which is a short drive from SouthTech Business Center.
“MIG is dedicated to strategic investment in and management of sustainable residential and business communities with a focus on retaining full ownership of its real estate investment assets for value-add appreciation,” says Kevin Stiles, at MIG. “This acquisition was an opportunity to continue to grow our Austin based commercial portfolio under management with over 800k sf acquired in the last year on behalf of investors in a high-demand areas.”
Trent Agnew, Charles Strauss, Lance Young and Brooke Petzold of JLL represented KBS in the sales transaction. Attorneys Bruce Fischer, Howard Chu, and Tina Ross, and paralegal, Amanda Kennedy, of global law firm Greenberg Traurig, LLP’s Orange County and Texas offices represented KBS as legal counsel in the disposition.
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