CenterPoint Buys Suburban Austin Industrial Park

CenterPoint Properties has acquired Innovation Business Park I & II, a two-building, Class A logistics park totaling 361,467 square feet, in Hutto, Texas, in northern metro Austin.

JLL Capital Markets marketed the property on behalf of the sellers, Ledo Capital Group, of Los Angeles, and St. Clair Commercial Real Estate. JLL will continue to handle leasing of the project for the buyer.

Innovation Business Park I & II. Image courtesy of CenterPoint Properties

The property was built in 2019 and 2020 using concrete tilt-wall construction. Ledo acquired the first, then newly completed, partially leased distribution building of 148,000 square feet and structured a forward commitment on an adjacent parcel to develop the second building, a speculative 212,000-square-foot cross-dock distribution facility, bringing the property to its current configuration.

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The buildings, at 1050 and 1070 New Technology Blvd., feature clear heights ranging from 30 to 32 feet, 96 dock-high doors, a shared 200-foot-deep truck court, 536 parking spaces and ESFR sprinkler systems.

The property is currently leased to Western Industries, Three Way Logistics and Barnsco.

The 20-some-acre park is on the northeast corner of the U.S. 130 and State Highway 79 intersection, close to State Highway 45 and I-35, providing both north-south and east-west connectivity.

The JLL Capital Markets Investment Sales and Advisory team that represented the seller was led by Trent Agnew, Dustin Volz, Dom Espinosa, Josh Villarreal and Matthew Barge.

The JLL Leasing team responsible for leasing the project consists of Ace Schlameus and Kyle McCulloch.

Set through 2023?

CenterPoint made its first industrial acquisition in Austin just this past December, purchasing a low-coverage infill distribution facility at 3830 Promontory Point. The 6-acre property currently has just 68,427 square feet of coverage.

Earlier this month, Titan Development broke ground on a nearly 300,000-square-foot fifth building at its NorthPark35 Industrial Park, in Georgetown, Texas.

The Austin industrial space market continues to enjoy strong tenant demand, which has pulled overall vacancy down to a 20-year low of 2.9 percent, according to a first-quarter report from JLL. Further, there’s enough demand, especially from advanced manufacturing and automotive companies, to soak up the more than 10 million square feet of deliveries anticipated over the next two years.