Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 27 March 2007

Thomas Properties Team Buying Equity Office's Austin, Texas Properties

Written by 
Rate this item
(0 votes)

An investor group led by Thomas Properties Group is buying a portfolio of 10 office properties with 3.5 million square feet in the Austin, Texas, area. The deal is being valued at $1.15 billion.

The Los Angeles company, which is teaming up with undisclosed institutional investors, is buying the portfolio from Blackstone Real Estate Advisors, which assumed the properties through its recent $38.7 billion acquisition of Equity Office Properties Trust.

Thomas is putting up $14.4 million of equity, which amounts to 6.25 percent of the $230 million of equity in the transaction. The Thomas team will line up roughly $920 million of mortgage debt with 10-year maturities.

The portfolio includes five buildings with 2.5 million sf in Austin's central business district and five buildings with nearly 1 million sf in the city's northwest submarket. The portfolio is 82 percent leased. According to a regulatory filing, the rents charged last year at Equity Office's Austin CBD properties were roughly $24/sf.

In Austin, the venture is buying Frost Bank Tower, with 561,000 sf - Equity Office purchased the building just last year for $188 million. It is also buying One Congress Plaza, with 549,000 sf; One American Center, with 523,000 sf; 300 West 6th Street, with 459,000 sf, and San Jacinto Center, with 404,000 sf.

The buildings comprise more than half of Austin's class-A office space.

In the city's northwest submarket, the team will be taking over:

- Stonebridge Plaza II, with 193,000 sf;

- Park 22, with 203,000 sf;

- Research Park Plaza I & II, with 273,000 sf;

- Westech 360, with 179,000 sf, and

- Great Hills Plaza, with 141,000 sf.

In touting its acquisition, which will increase Thomas' portfolio to 15.5 million sf, the company noted that Austin saw 2 million sf of net absorption last year - a record level - and saw rents rise by 18 percent. The city's overall vacancy rate is 12.7 percent.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Cities: Austin
  • States: Texas
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Company: BNP Residential Properties Inc., Equity Residential Property
  • Valuation: More than $150 million
Read 733 times

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds