Category: Ray’s Buzz

Rastegar Acquires Office in Affluent West Lake Hills to be the Company’s Global Headquarters

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Espirit Office Building to Feature Design Elements Addressing Health and Wellness

Austin, TX – December 2, 2020 – Rastegar Property Company, a technology-enabled private real estate investment firm focused on value-add and development in all asset classes throughout Austin and the Southwest United States, announced today the acquisition of the Espirit office building, located at 515 S. Capital of Texas Hwy in West Lake Hills, one of the wealthiest zip codes in all of Austin. The two-story, 29,685 square foot office building that features single level subgrade parking will be the global headquarters for Rastegar Property Company as well as other businesses looking to take advantage of the prestigious location that is just under seven miles from downtown Austin and 14 miles from the Austin-Bergstrom International Airport. Located in the heart of West Lake at the intersection of Bee Caves and Highway 360, Rastegar and the businesses that will lease space in the building will benefit from being able to offer convenient employment opportunities to the neighborhood’s affluent residents while taking full advantage of the various restaurants, shopping and other amenities in the area. “While many have cooled on office real estate, we believe the Espirit building provides Rastegar Property Company with an innovative opportunity to get our hands on a property located in one of Austin’s premier neighborhoods,” said Ari Rastegar, Founder and CEO of Rastegar Property Company. “As human beings, we’re communal by nature and need human interaction to be our most productive, which is why we are confident that there will be a welcomed return to the office post pandemic, with added health and wellness elements that address the concerns brought on by COVID-19.” The health and wellness of both employees and tenants is a core value of Rastegar Property Company, and the Espirit office building will be designed and maximized for the post-COVID world. Sitting on 2.39 acres will allow Rastegar to build outdoor workstations that take advantage of Austin’s favorable climate while the latest technology and materials will be used throughout the building to keep employees and other tenants safe and healthy. “The building has great bones in a terrific, easily accessible location. This will enable us to transform the space into one of the most sought-after boutique offices in West Lake,” said Hunter Floyd, Director of Design and Development at Rastegar Property Company. “Design will also focus on the post COVID environment by adding outdoor amenities, enhanced air filtration systems, touchless entries and exits, and common touchpoints, like railings and elevator buttons, could feature antimicrobial materials like copper.” About Rastegar Property Company Rastegar Property Company is a technology-enabled private real estate investment firm focused on value-add and development in all asset classes throughout Austin and the Southwest United States. Rastegar and its affiliates have co-invested in or directly own and operate over 13.8 million square feet of real estate across projects in 13 states and 38 cities. The firm specializes in acquiring complex or undervalued assets with opportunities to create value through repositioning, redevelopment, and/or improved operational efficiencies.

This Is the Altered Normal

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The COVID-19 pandemic continues to necessitate unimagined change. The impact it has brought to our world would have seemed, for many, unthinkable at the turn of the year. Some refer to this change as the “new normal.” Really, however, it’s the ”altered normal.” We are experiencing significant alterations to supply chain, manufacturing, and education models. How families live together and apart, how and where we shop, the shape of our workplaces, the meaning of an essential worker, and every facet of recreation and leisure have seen major changes as well. While the sharpness of these shifts may make life and work feel like a new reality, this altered normal has been in motion for decades — and most of us have missed it. Businesses most able to adapt in this pandemic are helmed by leaders who previously built into their thinking and strategic plans the ideas of disruption and digital transformation. These are strategic leaders who previously understood the forces and trends that were shaping the future, and grasp that the industry is ever-evolving beyond COVID-19.

Consumer Response

After hitting a peak in February 2020, the United States officially entered an economic recession, ending its longest expansion in history, lasting just over 10 years. Other global economies are also suffering. This recession is different to those of before. How fast the economy has slowed, who its slowing is affecting, and its leading factors all distinguish it from previous downturns. Jason Furman, an economist and professor at Harvard Kennedy School, described the current U.S. economy as being in a “medically induced coma.” Others highlight the fact that for many consumers and politicians, the remedy for the pandemic is an economic pause. Click to read more at www.ccim.com.

Keller Williams City View Takes Full-building Lease in Northwest San Antonio for New Campus

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Transwestern Real Estate Services announced that Keller Williams City View, a franchise of Keller Williams Realty International, has signed a full-building lease for 30,000 square feet at The Park at Vance Jackson. The property, located at 15510 Vance Jackson Road in San Antonio, was delivered in February 2020. Transwestern executive managing director Russell T. Noll, CCIM, CPM, and Deborah Bauer of Drake Commercial provided agency leasing services on behalf of the landlord, The Park on Vance Jackson LLC. Managing director Cynthia Lee, CCIM, GRI, of KW Commercial City View represented the tenant. “We are thrilled to welcome Keller Williams City View as it creates its first campus in the nation at The Park at Vance Jackson,” said Noll. “The Park at Vance Jackson will provide a cohesive campus that aligns with Keller Williams’ goals, while simultaneously launching a dynamic future and dramatically lowering occupancy costs.” The Park at Vance Jackson includes two 30,000-square-foot, single-story buildings. The property delivers on location, access, high-profile signage opportunities, proximity to best-in-class amenities and the highest standard of service levels in a dynamic and growing submarket. More than any time in recent history, a company’s office environment is vital in attracting and retaining top talent as well as communicating culture, brand and a sense of place for clients. Keller Williams City View has designed its new campus to adapt to the post-pandemic way of working and collaborating. Agents will have their own front doors to individual suites and access to conference rooms with video call capability and a 100-seat training facility to accommodate everyone under one roof. In the midst of COVID-19, Keller Williams has proven its faith in the San Antonio market’s ability to weather economic storms by its decision to move forward with this significant commitment. “This was a nuanced transaction that required a seasoned and experienced real estate team to negotiate, educate, mentor and coach throughout the process, and working with a fellow CCIM allowed for a highly collaborative approach,” said Lee. “Several factors motivated this location decision, including an environment that is conducive for collaboration, space for facetime that encourages connection, and a campus-like environment as we continue to expand and grow to better serve our customers. We are thrilled with our new home at The Park at Vance Jackson and look forward to recruiting more agents, connecting with our vendors, and enhancing our customer’s experience.”

Pearlstone Partners and ATCO to Present the City of Austin Design Commission a 41-Story Residential High Rise at 84 East Avenue

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AUSTIN, Texas—November 23, 2020. Austin-based Pearlstone Partners and New York-based ATCO Properties and Management announced they are presenting plans for a density bonus for their newest multi-family condominium development to the City of Austin Design Commission this evening. Currently referred to as “The East Tower” for permitting purposes, the developers are in the naming process with the formal name to be released at a later date. The East Tower is to be constructed at 84 East Avenue in Austin’s dynamic Rainey Street Historic District. Co-Developers, Pearlstone Partners, a full-service real estate development firm with more than 100 years combined experience in the local real estate industry, and ATCO Properties, the New York-based investment group, are still finalizing many of the details for The East Tower. The firms expect to break ground on the project in the second quarter of 2021, with completion projected for the fourth quarter of 2023. The 41-story condominium tower, situated on 0.41 acres is expected to offer approximately 284 residential homes at an average size of 975 square feet. The East Tower plans for the Design Commission will include the below updates:
• Compliance with Great Streets by fee-in-lieu due to the location and proximity to IH-35 and TXDOT Right-of-Way not allowing for full Great Streets. In addition to paying the fee-in-lieu, the ground level of The East Tower has been moved back to incorporate a more pedestrian-friendly streetscape.
• The streetscape was designed by DWG. and will feature several large planter boxes with full-sized trees and native Texas plants, as well as, a tree-shaded sitting area for passers-by and bike racks. At the northeast corner, planter boxes and a vine cabling system will create an over 100-foot-tall green wall adding life and vibrancy to the area.
• An exterior mural and sign visible via a public access easement will direct visitors and residents from Rainey Street to the public art gallery located adjacent to the rear lobby. Once a neighborhood of sleepy bungalows, the Rainey Street Historic District is now the densest neighborhood in the city in terms of population, offering class-A apartments, high-rise condominiums, and high-end hotels; 25-plus restaurants and food trucks, many of them award-winning; and 20-plus uniquely designed bars—all within a coveted neighborhood that earns a 90+ walkability score. Anticipated common amenities for The East Tower include a rooftop community clubhouse, sky-deck pool, cabana, outdoor kitchen, fireplace, and lounge; a resident fitness center, featuring private spin and yoga studios; a sky dog park, lawn and washing station; a community courtyard and gathering table; and a ground floor co-working space. The rear lobby will likely feature a public art gallery and mural showcasing works by local artists, with direct access to Rainey Street and its many inviting shops, eclectic variety of restaurants and cafes, live music venues, and other entertainment options. Pearlstone Partners and ATCO to Present the City of Austin Design Commission a 41-Story Residential High Rise at 84 East Avenue The East Tower will be less than a mile from the Austin Convention Center, a mile and a half from the
Texas State Capitol, two miles from The University of Texas at Austin, and just steps away from the coveted Ann and Roy Butler Hike-and-Bike Trail, which stretches more than 12 miles around Austin’s venerable Lady Bird Lake. With close proximity to major employers—including Google, Facebook, Atlassian, Parsley Energy, Indeed Tower, Oracle, and many independent start-up firms, as well as to UT Austin and the State Capitol Complex—The East Tower will offer an ideal live-work-play lifestyle. The architect for The East Tower is STG Design, the civil Engineer is Wuest Group, the interior designer is McCray & Co, and AECOM Hunt is providing pre-construction services. The property will be marketed exclusively by Prospect Real Estate.
“Pearlstone Partners is one of the few developers focused on developing an attainable urban housing portfolio,” said Pearlstone Partners CEO and Principal Robert Lee. “We are excited that this project will offer a new price point for buyers who have been priced out of the downtown market with the recently delivered developments. Appealing to an array of buyers including young professionals, empty nesters, first- and second-time home buyers, and anyone else who is attracted to the area’s energy, culture, and urban, walkable lifestyle, the development will feature one- and two-bedroom residences. The East Tower will aim to price the majority of the units from $499,000 to $999,000, which would be the lowest priced new build, downtown high-rise, especially in the highly sought-after Rainey Street District.”

About Pearlstone Partners

Austin-based Pearlstone Partners is a full-service real estate development firm with more than 100 years of combined experience in the local real estate industry. The company has been responsible for more than $200 million in locally developed real estate and has more than $600 million actively invested in a broad range of commercial projects, including office buildings, condos, multi-family and mixed-use projects in some of Austin’s most desirable areas, with an emphasis on urban properties in pedestrian-oriented locations. Pearlstone Partners engages in the economic development of Central Texas by creating high-quality, profitable real estate development projects. With experience managing every stage of the property development life cycle, Pearlstone is uniquely qualified to execute projects from concept through completion. For more information, visit //www.pearlstonepartners.com.

About ATCO

ATCO is a closely held real estate investment and ownership platform deploying capital in select cities across the United States, with a particular emphasis on urban properties in pedestrian-oriented locations. For over nine decades, ATCO has owned, managed, and developed a diverse real estate portfolio, primarily in and around New York City, and provided a range of services to other real estate owners. ATCO’s real estate operating company includes investment management, development, marketing, architectural design, and construction management, property management, and commercial and residential brokerage. ATCO’s investment and development portfolio consist of projects in excess of $2.2 billion in gross asset value.

NAIOP Projects Negative Absorption of Office Space to Continue in the Short Term; Expects Positive Trend to Begin in the Second Quarter of 2021

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A new office space demand forecast published by the NAIOP Research Foundation projects a period of negative absorption through late 2020 and early 2021, but total net absorption from Q2 2021 to Q3 2022 will exceed negative absorption from the recession, resulting in overall gains. In addition, the forecast negative absorption is less than the negative absorption that has been reported for the last two quarters. “Given the continued challenges facing the U.S. economy, office net absorption is forecast to be negative 18 million square feet in Q4 2020 and negative 10 million square feet in Q1 2021,” according to the forecast. “The coronavirus pandemic has led to conditions that are remarkably different from past recessions but are nonetheless challenging for the office sector.” “Although vacancy rates have risen, there are many multiyear leases that are set to outlast the projected return to the office,” said Thomas J. Bisacquino, president and CEO of NAIOP. “Office space users face a unique dynamic presented by the pandemic, but the shift to remote work has allowed businesses to keep going in certain sectors.” For example, October unemployment rates in the financial-activities sector (3.8%), information sector (5.8%) and professional and business services sector (6.1%) were below the U.S. national average of 6.9%. Click to read more at www.naiop.org.

Transwestern Secures Full-Building Lease at Houston Industrial Property

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Transwestern Real Estate Services (TRS) announced that TAXA Outdoors has signed a 69,356-square-foot lease to occupy the entire building at 7930 Blankenship Drive in Houston. Transwestern managing director Nick Peterson, SIOR, and executive managing director John Ferruzzo, SIOR, provide agency leasing services on behalf of the building owner, Prologis. TAXA Outdoors was represented by Geoff Perrott and Jeff Venghaus of JLL. The property has convenient access to Highway 290, Loop 610, and Beltway 8. The building amenities include two fenced truck courts, two-story office space and outside storage capabilities.