CapRidge Buys Lakewood on the Park

Equity Commonwealth, a Chicago-based REIT, has sold Lakewood on the Park, a set of office buildings located along the North 360 Loop on Austin, to CapRidge Partners. Austin-based CapRidge Partners acquired the 180,588-square foot suburban office campus with $32.1 million in financing provided by Los Angeles-based Mesa West Capital, a private debt fund manager and portfolio lender with offices in Los Angeles, New York and Chicago. HFF arranged the financing and represented the seller in the transaction; the total purchase price that CapRidge Partners paid was not disclosed. According to the Travis Central Appraisal District, the property most recently valued at almost $40 million.

"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. "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."

Located at 700 Capital of Texas Highway, the property features two three-story Class A office buildings on a nearly ten-acre site overlooking Bull Creek. Originally built in 1998, Lakewood on the Park, Buildings B and C, was 77% leased at the time of sale, with major tenants including Centaur Technology Inc., Bulldog Solutions, and USA Southwest Inc. The property was developed by HPI, and received the 2012-13 TOBY Award from the Building Owners and Managers Association for the best low-rise suburban office park in the city. Mesa West's loan includes funding for an extensive capital improvement program to support CapRidge’s renovation plans, which 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. The property benefits from nearby executive housing and popular shopping and entertainment destinations The Arboretum and Barton Creek Square.

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