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6/01/16
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CapRidge Partners has acquired Lakewood on the Park, a 180.6k sf, suburban office campus in Austin’s Northwest submarket. The property was sold by Equity Commonwealth.
Located at 7600 Capital of Texas Highway (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. 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.
Lakewood on the Park was 77 percent leased at closing. Tenants include Centaur Technology, Inc. Bulldog Solutions, and USA Southwest, Inc.
Los Angeles-based Mesa West Capital provided $32.15 mil in short-term, non-recourse financing for the transaction. The 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,” added Bressler.
The Loop 360 Corridor is Austin’s strongest performing suburban submarket. Despite the addition of more than 650k sf of deliveries, the area has maintained an occupancy level of 90% and seen rent growth of 6% over 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. The property seller was represented by HFF in Dallas.
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