USAA, Patrinely Sell Austin Office Development

Aspen Lake Three office development. Image courtesy of Patrinely Group

A partnership of USAA Real Estate and a Patrinely Group investment fund announced it has sold a recently completed office development in Austin, Texas, to an unnamed buyer.

The 128,990-square-foot property in northwest Austin, known as Aspen Lake Three, was completed last month and will be 100 percent leased by financial software company Q2 Holdings Inc. In May, the venture obtained a $28.5 million construction loan from Frost Bank for the development, according to CommercialEdge.

A representative for Patrinely Group did not respond to a request for information on the sale price or the identity of the buyer.

READ ALSO: KBS Sells South Austin Industrial Park

Patrinely and USAA first acquired the vacant, 205,000-square-foot Aspen Lake One building and two adjoining sites in 2011. Last May, the venture launched construction on Aspen Lake Three. The Class A property is the third building to rise at the Aspen Lake development. In addition to Aspen Lake Three, Q2 Holdings also leases space in the Aspen Lake One and Aspen Lake Two office buildings.

The Austin development isn’t the first office project for the joint venture. In April, USAA and Patrinely topped out a speculative office development in downtown Salt Lake City. The 332,000-square-foot building is slated to be completed in the first quarter of 2022.

Q2 Holdings has had a big year so far. In addition to the new office lease, the company entered into an agreement in January for naming rights of the city’s new soccer stadium that serves as the home for Major League Soccer franchise Austin FC. The $240 million stadium officially opened this week in north Austin, hosting the U.S. women’s national team in its 2-0 win over Nigeria.

Market on the rise

Austin’s office market performance is gradually recovering, with the most recent data showing that vacancy improved by 20 basis points month-over-month from March to April of this year. Earlier this week, real estate firm Kilroy Realty announced the blockbuster $580 million purchase of the Indeed tower in downtown Austin, the tallest and largest office building in the city. The acquisition marked Kilroy’s first foray into the Austin market and comes on the heels of Carr Properties’ own entrée into the metro with the $293 million purchase of 100 Congress Avenue last month.