DivcoWest Lands $103M for Austin Office Asset

Bouldin Creek

After a year of ownership, DivcoWest has secured a $103 million financing package for Bouldin Creek, a LEED Gold-certified office building totaling 167,130 square feet in Austin. TIAA provided the variable interest rate loan, Travis County records show.

In the first half of 2022, 79 office properties totaling nearly 4.4 million square feet across Greater Austin received more than $4.4 billion in the form of acquisition loans or refinancing, CommercialEdge data shows.

Earlier this year, DivcoWest also landed $145 million to refinance a 24-story office high-rise in Glendale, Calif. CBRE arranged the five-year loan originated by Deutsche Bank, which retired a $120 million loan provided by AXA Equitable Life Insurance Co.

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Bouldin Creek came online in 2021 at 2043 S. Lamar Blvd. The Class A, five-story property features floorplates that average 50,000 square feet, 2,500 square feet of retail space and a parking ratio of 3.9 spaces per 1,000 square feet, CommercialEdge data shows.

Designed by Michael Hsu Office of Architecture and Studio8 Architects, Bouldin Creek includes outdoor terraces, a rooftop deck, a fitness center with lockers and shower facilities, bike storage and electric vehicle charging stations. The multi-tenant property also encompasses more than 2 acres of shaded green space with open-air workspaces, walking trails and a creek.

The boutique office building is within 2 miles of Interstate 35 and less than 3 miles from downtown Austin. The Republic, a 48-story office tower developed by DivcoWest, Lincoln Property Co. and Phoenix Property Co., and 6th & Guadalupe, a 66-story mixed-use tower developed by DivcoWest, Lincoln Property Co. and Kairoi Residential, are both within a 3-mile radius of the property.

A leading market for office construction

Greater Austin had 8.4 million square feet of office projects under construction as of June, according to CommercialEdge. The value represents 9.4 percent of total inventory, more than four times the national average of 2.2 percent.

In addition, the metro was among the top markets for office starts (2.7 million square feet) in the first half of the year. One of the projects kicked off construction in April, when Ivanhoé Cambridge teamed up with Greystar to develop 1121 at Symphony Square, a 175,000-square-foot office project in downtown Austin.