Ascentris Sells Suburban Austin Office Campus, Paloma Ridge
Denver, Colorado (April 30, 2021) – Ascentris, a Denver-based real estate private equity firm, announced today the sale of Paloma Ridge, a three-building, 376K sf Class A office campus in the Northwest Submarket of Austin, TX.
Recognizing the potential for growth in Austin, which is now one the largest technology districts in the country and aptly known as “Silicon Hills,” Ascentris acquired the property in 2017. At the time, Buildings A & B (211K sf) were 70% occupied. Within nine months, Ascentris executed 65K sf of new leasing to bring the property to 100% leased. Shortly after that, Ascentris commenced construction of a third building, Paloma Building C (165K sf), with developer Stream Realty Partners.
“Austin’s growth story is obvious, but the northwest had previously been overlooked despite strong demographic trends pushing both employers and employees north,” said Ascentris Associate Baird Elam. “The strong demand experienced with the lease-up of Buildings A & B made the decision to develop Building C an easy one, although we understood the race to attract and retain talent meant we needed to differentiate the Campus from its peers.”
Ascentris created amenities at Paloma Ridge that are unique to the Northwest Submarket, adding a fitness center, yoga room, a one-mile walking track, outdoor fitness nodes, and WiFi-enabled outdoor lounge and workspaces. These amenities paired with efficient floor plates and high parking ratios attracted significant tenant demand. Building C was 48% preleased before delivery in 1Q-2020. Following construction completion, and despite the onset of the COVID-19 pandemic, Ascentris executed an additional 86K sf of new leasing, bringing the property to 100% leased in 1Q-2021. During 2020 alone, the property experienced 138K sf of new leasing.
“Ascentris is thrilled with the outcome of this investment,” said Ascentris CEO Gabe Finke. “Paloma Ridge is a great case study for what we continue to pursue in the suburban office sector. The leasing velocity and tenant profile at the property demonstrate continued demand for new, high-quality, well-amenetized office space in the right markets and submarkets,” added Finke.
Brad Philp, Scott Deskins, and Connor Atchley of Stream Realty Partners leased the property on behalf of Ascentris, while Eric Herron and David Blackbird led the development of Building C for Stream Realty Partners. Mike McDonald, Celeste Fowden, Ryan Stevens, and KatyJane Jenevein of Cushman & Wakefield marketed the property for sale on behalf of Ascentris.
Ascentris is a real estate private equity firm based in Denver, Colorado. With over $2.1 billion in assets under management, Ascentris manages a series of fully discretionary institutional vehicles targeting both core and value-add investments across the major property types and geographic regions within the United States. Since 2003, Ascentris’ management team has relied on an investment philosophy and organizational structure that results in its investors getting to opportunities ahead of the market while receiving an unmatched level of service, transparency and accountability. Ascentris is a privately held and management-owned SEC registered investment adviser that maintains an unwavering commitment to put its investors’ needs first. Additional information is available at www.ascentris.com.