JV Acquires Austin's University Park

Lionstone–Hermes Real Estate Venture, a joint venture of Houston-based Lionstone Investments and London-based Hermes Investment Management, announced that it has purchased University Park in Austin, Texas. the eight-story Class A office building was sold by San Francisco-based Spear Street Capital for an undisclosed sum; the property was developed several years ago by Andy Sarwal, who planned a $750 million mixed-use project on the site, which later stalled. The most recent valuation by the Travis Central Appraisal District priced the property at $40.8 million. The sale of the property was brokered by HFF.

"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," said Lionstone Investments' CEO Jane Page in a statement. "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."

The 206,657 square foot building at 3300 N Interstate Hwy 35 was 94% leased at the time of sale, with major tenants including Google, WeWork, ESPN, and Evernote. University Park will continue to be lease managed by Aquila Commercial Properties, while TransWestern will provide property management.

For more news and information visit Blumberg Partners.

JV Buys Tasman Tech Park for $116M

Deutsche Asset & Wealth Management has sold Tasman Technology Park in the Silicon Valley Market to a joint venture between Houston-based Lionstone Investments and Bay Area-based Orchard Partners, in partnership with an institutional client, for about $116 million, or roughly $190 per square foot. The park covers fourteen office/R&D buildings totaling 608,968 square feet, prominently located along Tasman Drive, and conveniently positioned one stop from new Milpitas Bay Area Rapid Transit (BART) station, which will be completed in early 2017. Full terms of the deal were not disclosed.

"Orchard Partners and Lionstone were attracted to this opportunity by its prominent, accessible location, the continuous glass line of the buildings, and the opportunity to raise the overall image of the campus through building and common area improvements," stated Michael Biggar, Managing Partner of Orchard Partners. "We intend to make a substantial capital investment in the property to create a community oriented work environment in which tenants will thrive. We have a 47 acre canvas with which to work."

"Lionstone is thrilled to be a part of the growing Silicon Valley market anchored by innovative technology leaders such as Google, Apple, Samsung and Cisco. The ideal location of the Tasman Technology Park, in the center of the creative, technological hub, offers a unique opportunity to deliver creative, campus environments equipped with desired features such as beautiful outdoor spaces and work areas that attract smaller tech tenants that can use these amenities to recruit and retain the best employees," said Jane Page, Lionstone Investments CEO.

Tasman Technology Park was 98% leased at the time of sale to a diverse tenant roster including technology leaders such as FireEye, Micron Technology, and Trimble Navigation. Deutsche Asset & Wealth Management, formerly known as Rreef, has been selling many of the Peery/Arrillaga portfolio properties, following a roughly eight-year hold, according to a Silicon Valley Business Journal article. Other sell-offs include a Sunnyvale package sold to Lane Partners last December for about $250 per square foot.

For more news and information visit Blumberg Capital Partners.