Austin’s Plaza on the Lake Changes Hands
Plaza on the Lake, a historic three-story office edifice known for its picturesque vista of Lake Austin and the iconic Pennybacker Bridge, has changed ownership. The acquisition was made by Endeavor Opportunity Partners III, a fund managed by the local Endeavor Real Estate Group.
New Ownership, Continued Management
The Endeavor Real Estate Group, based in Austin, has assumed ownership through an entity affiliated with their discretionary fund. The property was previously owned by an institutional investor, identified in records as CP/IPERS Austin Lake LLC. The real estate acquisition process was intercepted by the Newmark representatives, Chris Murphy, Robert Hill, and Gary Carr. The property’s purchase price remains undisclosed.
Competitive Bidding and Property Value
Chris Murphy reported that the property attracted in excess of 20 offers during a highly competitive sale process, necessitating multiple bidding rounds. Recently, the Travis Central Appraisal District placed the property’s value at $44.1 million for 2024, marking a notable rise from last year’s $36 million.
The Iconic Asset: Plaza on the Lake
With a sizeable 120,789 square feet of space and a captivating frontage of Lake Austin, Plaza on the Lake is one of Southwest Austin’s most unmistakable structures. Its popularity and prime location are reflected in its 68% occupancy rate, with some of its tenants including prominent names like Sony Interactive Entertainment and Capital Factory. Spanning 4.5 acres, the building enjoys a prime position along the Capital of Texas Highway (Loop 360) and Lake Austin. Delighted with securing this iconic asset, Murphy suggested, Endeavor “will achieve significant upside through lease-up of existing vacancy.”
Capital Improvements to the Building
First constructed in 1985 and later rejuvenated in 2021, Plaza on the Lake has benefited from over $5 million in capital advancements in the last few years. The group shows no signs of slowing down, with plans to further develop, own, and operate the building as a superior office asset. Remarkably, 89% of the current tenant cohort secured their leases within the previous three years, a testament to the building’s desirability.
A Look at the Endeavor Real Estate Group
Endeavor is one of Central Texas’ most recognized commercial real estate companies, with impressive developments under their belt, ranging from retail and office spaces to residential and mixed-use projects. Since launching in 1999, Endeavor has been able to develop or purchase a staggering 29.7 million square feet of real estate projects. The firm also manages more than 9.2 million square feet of commercial space and has over 4.3 million square feet of space currently in development.