Austin Office Asset Lands Extension on $63M Loan
The note was initially issued in 2020 as a construction mortgage.
Schlosser Development has secured an extension on its $63 million loan for an 83,839-square-foot office building in Austin, Texas, according to CommercialEdge information.
The mortgage was originated by Prosperity Bank in 2020 as a construction loan and since then has been modified in 2022 and earlier this year as well, when the maturity date was pushed for 2027. The loan is backed up by the Class A office building, which is located at 1111 W. Sixth St.
The four-story building came online in 2024 and is on a nearly 3-acre lot in the West Central submarket of Austin. It is situated close to Austin Train Station on Lamar Boulevard, near multiple bus stops. Austin-Bergstrom International Airport is 14 miles away, while the nearby Interstate 35 allows easy access to Waco, Texas, and San Antonio, Texas.
READ ALSO: Austin’s Office Market Ranked Second for Development
The building is part of Treaty Oak Square, a two-property mixed-use redevelopment of the former Austin Independent School District headquarters. Schlosser Development tapped American Constructors as general contractor and Nelsen Partners as architect of record.
Redevelopment plans for the North Building, or Building B, called for the renovation of the four-story property. Construction started in 2020 and the project came online in January 2024. The low-rise also includes 13,000 square feet of retail space and is anchored by law firm McGinnis Lochridge. Other tenants include Alliance Residential Co., VeraBank, Edelman Financial Engines and Walker & Dunlop.
A hyperlocal owner
Schlosser Development owns 10 properties in Austin, with nine of them being in the same area between downtown and the Clarksville neighborhood, CommercialEdge shows. Four of those office buildings were developed between 2004 and 2018, ranging between 25,000 to 285,000 square feet.
Among Schlosser’s recent completed buildings was also Shoal Creek Walk, a 16-story, 215,000-square-foot office asset at 835 W. Sixth St. The property is anchored by Cirrus Logic, while other tenants include Vida Capital, Central National Bank and Ovation Partners, among others.
As of February, the Austin office market had 3.6 million square feet under construction, representing 3.7 percent of stock, 300 basis points higher than the national figure, which clocked in at 0.7 percent, according to a recent report. The metro’s construction pipeline was placed only second after Boston, which led with 6.5 million square feet.
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