On behalf of Travis County in Austin, Texas, CBRE and the Travis County Commissioners Court announce a 99-year ground lease with Lincoln Property Company and Phoenix Property Company for 308 Guadalupe, a prime downtown Austin infill site comprising a full city block.
The County sought proposals that maximize value for the 77,215-square-foot site, which could potentially be developed to a 25:1 floor to area ratio (FAR) based on the City of Austin’s density bonus program. The selected firm proposed a mixed-use development that could encompass office, residential, hotel, retail and parking.
“We listened to the community when they told us that this downtown block was an asset that should be available for private development,” said Travis County Judge Sarah Eckhardt. “By establishing a smart, competitive procurement process, we are unlocking the potential of this block to contribute hundreds of millions of dollars in revenue to Travis County and its taxpayers.”
The site is bounded by Third and Fourth Streets to the south and north, and Guadalupe and San Antonio Streets to the east and west. Previously considered for public use, the site was repositioned to leverage its substantial value.
CBRE orchestrated a deep international investor outreach during the marketing phase of the engagement. Following a rigorous procurement process established by Travis County and conducted by the County Purchasing Office, a significant ground lease was negotiated with the winning bidder.
“It’s a win-win scenario for the County and for its residents—the transaction provides substantial monetization value to the County, while generating long-term tax revenue that can be used for County services needed by our community. It was an honor for the CBRE team to represent the financial and strategic interests of Travis County, and the County personnel involved were highly focused and dedicated to this cause,” said Jerry Frey, Senior Vice President, CBRE.
Jerry Frey, Eric DeJernett, Burke Kennedy and Todd Mills with CBRE’s Capital Markets and Advisory & Transaction Services teams in Austin, teamed with Peter Jansen and Michael McShea, with CBRE’s Public Institutions and Education Solutions (PIES) Group, to represent the Travis County Commissioners Court in the solicitation process and transaction negotiations. Additional consultants on the project included AECOM and Alvarez & Marsal.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.