Denver, Colorado (April 30, 2021)
Ascentris, a Denver-based real estate private equity firm, announced the sale of Paloma Ridge, a three-building, 376,000 square foot Class A office campus in the Northwest submarket of Austin, Texas.
Recognizing the growth potential in Austin, now one of the largest technology districts in the country and often referred to as “Silicon Hills,” Ascentris acquired the property in 2017. At the time, Buildings A and B, totaling 211,000 square feet, were 70% occupied. Within nine months, Ascentris executed 65,000 square feet of new leasing, bringing the property to full occupancy. Shortly thereafter, the firm commenced development of a third building, Paloma Building C, totaling 165,000 square feet, in partnership with 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 and 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 introduced several amenities unique to the Northwest submarket, including a fitness center, yoga room, a one-mile walking track, outdoor fitness areas and WiFi-enabled outdoor lounge and workspace areas. These features, combined with efficient floorplates and high parking ratios, helped attract strong tenant demand.
Building C was 48% preleased before its delivery in the first quarter of 2020. Following completion and despite the onset of the COVID-19 pandemic, Ascentris executed an additional 86,000 square feet of leasing, bringing the property to full occupancy in the first quarter of 2021. During 2020 alone, the campus recorded 138,000 square feet 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-amenitized 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.
About 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 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 allows investors to access opportunities ahead of the market while receiving a high level of service, transparency and accountability. Ascentris is a privately held and management-owned SEC registered investment adviser committed to putting its investors’ needs first. Additional information is available at www.ascentris.com.
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