NEWMARK GROUP, INC. April 10, 2024 11:00 AM
Newmark announces the sale of Plaza on the Lake, a 120,789-square-foot office asset in Southwest Austin with direct frontage to Lake Austin.
Newmark Vice Chairmen Chris Murphy, Robert Hill and Gary Carr represented the seller, an undisclosed institutional investor, in the sale to the buyer, an entity affiliated with Endeavor Opportunity Partners III, a discretionary fund managed by Endeavor Real Estate Group.
Plaza on the Lake is a three-story, Class A office building situated on an expansive 4.56-acre site along the Capital of Texas Highway and Lake Austin. The building-originally constructed in 1985 and renovated in 2021-has undergone $5-plus million in capital improvements in recent years. With direct frontage to Pennybacker Bridge, the desirable West Austin location has continuously attracted a diverse range of tenants over the decades.
"Plaza on the Lake is uniquely positioned to capture future office leasing demand by capitalizing on the ongoing tenant desires for affluent adjacent locales with differentiated settings and amenity bases," said Murphy.
Within Austin's premier suburban destination workplace, the property is 68% leased to a diverse base of credit-worthy tenants generating a strong in-place cash flow. A remarkable 89% of the current tenant roster at the property has been secured within the past three years, reaffirming the allure of this iconic asset. New ownership will achieve significant upside through lease-up of existing vacancy and mark-to-market of in-place rents.
Murphy added, "Our team is proud to have advised our preeminent client in the disposition of Plaza on the Lake through a highly competitive sale process which garnered 20+ offers and multiple rounds of bidding. Through that process, the ideal buyer emerged, and we are pleased to have worked with Endeavor through their acquisition process and look forward to witnessing the asset's next iteration under their ownership."
The continued strength and growth in the Southwest Austin market's office employment reflect an enduring appetite for office assets, according to Newmark Research. The office market's long-term outlook remains positive and competitive given the strong economic fundamentals, such as a diversified labor pool and continued office-using jobs growth.
About Endeavor Real Estate Group
Endeavor Real Estate Group is an Austin, Texas-based full-service commercial real estate firm that enhances value with a creative approach to investment, design, management, and leasing of retail, office, industrial, self-storage, mixed-use, and multifamily properties. Since its inception in 1999, Endeavor Real Estate Group has acquired or developed more than 29.7 million square feet of realized real estate projects; has more than 9.2 million square feet of office, industrial, and retail space under management; and over 4.3 million square feet currently under construction. For more information, visit: endeavor-re.com/.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2023, Newmark generated revenues of approximately $2.5 billion. Newmark's company-owned offices, together with its business partners, operated from approximately 170 offices with 7,400 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
Newmark announces the sale of Plaza on the Lake, a 120,789-square-foot office asset in Southwest Austin with direct frontage to Lake Austin.
Newmark Vice Chairmen Chris Murphy, Robert Hill and Gary Carr represented the seller, an undisclosed institutional investor, in the sale to the buyer, an entity affiliated with Endeavor Opportunity Partners III, a discretionary fund managed by Endeavor Real Estate Group.
Plaza on the Lake is a three-story, Class A office building situated on an expansive 4.56-acre site along the Capital of Texas Highway and Lake Austin. The building-originally constructed in 1985 and renovated in 2021-has undergone $5-plus million in capital improvements in recent years. With direct frontage to Pennybacker Bridge, the desirable West Austin location has continuously attracted a diverse range of tenants over the decades.
"Plaza on the Lake is uniquely positioned to capture future office leasing demand by capitalizing on the ongoing tenant desires for affluent adjacent locales with differentiated settings and amenity bases," said Murphy.
Within Austin's premier suburban destination workplace, the property is 68% leased to a diverse base of credit-worthy tenants generating a strong in-place cash flow. A remarkable 89% of the current tenant roster at the property has been secured within the past three years, reaffirming the allure of this iconic asset. New ownership will achieve significant upside through lease-up of existing vacancy and mark-to-market of in-place rents.
Murphy added, "Our team is proud to have advised our preeminent client in the disposition of Plaza on the Lake through a highly competitive sale process which garnered 20+ offers and multiple rounds of bidding. Through that process, the ideal buyer emerged, and we are pleased to have worked with Endeavor through their acquisition process and look forward to witnessing the asset's next iteration under their ownership."
The continued strength and growth in the Southwest Austin market's office employment reflect an enduring appetite for office assets, according to Newmark Research. The office market's long-term outlook remains positive and competitive given the strong economic fundamentals, such as a diversified labor pool and continued office-using jobs growth.
About Endeavor Real Estate Group
Endeavor Real Estate Group is an Austin, Texas-based full-service commercial real estate firm that enhances value with a creative approach to investment, design, management, and leasing of retail, office, industrial, self-storage, mixed-use, and multifamily properties. Since its inception in 1999, Endeavor Real Estate Group has acquired or developed more than 29.7 million square feet of realized real estate projects; has more than 9.2 million square feet of office, industrial, and retail space under management; and over 4.3 million square feet currently under construction. For more information, visit: endeavor-re.com/.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2023, Newmark generated revenues of approximately $2.5 billion. Newmark's company-owned offices, together with its business partners, operated from approximately 170 offices with 7,400 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
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Newmark Group Inc. published this content on 10 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 April 2024 18:50:05 UTC.
