UNUM SELLS 262,000-SF NORTHVIEW BUSINESS CENTER
AUSTIN-A little more than four years after taking receivership of the 262,067-square-foot Northview Business Center, UNUM Life Insurance Company of America sold the class B, multi-tenant office building to TriGate Capital. A lack of value-add investment opportunities in the Austin MSA attracted a great deal of interest: During the marketing period, seller representative Transwestern fielded 65 requests for information and accepted 11 offers.
The sales price was confidential, with the Travis Central Appraisal District assessing it at $16.8 million. The building at 9001 Interstate 35 was once in receivership by Equastone before UNUM stepped in to take ownership from the flailing commercial real estate company. The one-story office building is currently 70% occupied, but there are few properties that can accommodate a tenant larger than 40,000 square feet.
In fact, when Transwestern initially brought Northview Business Center to market earlier this year, there were four office properties throughout the Austin metro area that could accommodate a 40,000-square-foot tenant, while offering a parking ratio of 5+/1,000. As of now, Northview Business Center and one other has that kind of space, and Northview has a strong parking ratio.
“The combination of Austin’s job growth and the lack of available options have created an excellent opportunity for TriGate Capital to add value to Northview Business Center,” says Transwestern’s Leah Gallagher, who partnered with colleagues Hale Umstattd and Luke Wheeler to market the building.
TriGate Capital’s Jason Obenhaus says the company will upgrade the property and offer aggressive rental rates with tenant improvement allowances geared toward renewals and lease-ups.