The joint partnership Lionstone–Hermes Real Estate Venture (LHREV) announced that it has purchased University Park, a Class A office building located in central Austin and within close proximity of The University of Texas campus.
The eight-story, 206,657 square-foot building is currently 94% leased. This cutting-edge, sustainably-designed office building located within Austin’s urban core is home to a roster of premier tenants including Google, WeWork, ESPN, and Evernote.
“Changing user preferences and the shifting U.S. economy are driving forces behind the types of property that today’s companies are seeking for the long-term growth of their businesses,” notes Lionstone’s CEO Jane Page. “The current generation is looking for office space that fosters creativity, collaboration, and connectivity. Real estate that supports inclusivity and community, while also being multimodal and environmentally conscious, is highly sought after. University Park is a prime example of the type of property that aligns with these trends.”
Chris Taylor, Head of Private Markets at Hermes Investment Management, adds, “The acquisition of University Park is consistent with our long-term strategy to capture the benefits of investing in sustainable locations within growing markets. Austin’s growth, along with companies expanding their presence in the region, has seen occupiers requiring world-class facilities to retain and seek new talent. Through our occupier-driven approach with our like-minded JV partner Lionstone, we are confident that this investment will be a success.”
Launched in 2014, the primary objective of the Lionstone–Hermes Investment Management joint venture is to invest in office properties in high-growth U.S. Markets. Austin has ranked consistently high on the top lists for accelerated job growth and comparatively low unemployment. The availability of a young, well-educated work force and relative low cost of living make it an attractive alternative to pricier locations of the Northeast and West Coast.
The sale was brokered by HFF. Aquila Commercial Properties will continue to manage leasing of the building and property management will be provided by TransWestern.