Austin’s Bustling South Congress Avenue Welcomes New Ownership for Key Retail Project
Outfitted with a myriad of attractions such as live music, dining, diverse shopping, enthusiastic street musicians and vibrant locals, South Congress Avenue in Austin never lacks in flair or dynamism. The latest headline to be churned out of Austin’s trendy avenue is a huge sale – The Saint Vincent retail project has been bought by a new owner.
About Saint Vincent and its New Owner
Jones Lang LaSalle Inc. (JLL), an industry giant in the commercial real estate and investment management sector, shared this news in its latest press release. The Saint Vincent property, an active commercial hub, stands in the middle of South Congress and E. Gibson St., right opposite Perla’s, and is currently prominent for its retail tenants including Madewell, King Ranch Saddle Shop, Howler Bros, Garrett Leight, and Marine Layer, as well as the corporate office of John Deere.
A beacon in the South Congress district heart, Saint Vincent was constructed in 2018 and currently hosts 21,185 square feet of space, boasting an impressive 100% lease. Over the past decade, the South Congress district has maintained impressive retail occupancy levels, even exceeding 95% at times, according to sources from JLL.
Although the district underwent significant transformations over the years, shifting from a red-light district to a bustling & upscale shopping, dining, and entertainment hub, the Saint Vincent property’s value has remained consistent. This year, the Travis Central Appraisal District valued the property at an astounding $11.6 million. However, the true market value of the property could be even higher.
The details regarding the transaction, including its price, were closely guarded. JLL’s retail capital markets team, consisting of Chris Gerard, Ryan West, Erin Lazarus, Shea Petrick, Megan Babovec, and Ben Pollack, were involved in representing the seller and procuring the buyer for the Saint Vincent property.
Detailing the Parties Involved
While further specific details about the buyer and seller were withheld from the public, it is rumored that the property’s previous owner was Clarion Partners, a New York-based entity. The buyer, on the other hand, is believed to be Pennybacker Capital, a well-known investment firm based in Austin.
With a staggering $3.9 billion assets under management and $250 million raised in equity till date, Pennybacker Capital’s portfolio shows its proclivity for underperforming properties in key growth markets. Apart from their headquarters in Austin, Pennybacker runs offices in Charlotte, N.C., Denver, and New York. The firm has yet to return inquiries regarding the recent property purchase.
Historical Significance
Prior to its transformation into a mixed-use project, this site served as a thrift store and collection center for St. Vincent de Paul until 2016. As South Congress continues to develop and evolve, it begs the question – will the funky, distinctive character that the district is known for remain intact, or will it morph into something entirely different in the face of modernization?
Conclusion
No matter the transformation, the property acquisition of Saint Vincent promises to usher in a new era of growth and development for the South Congress district. The impact and influence of this acquisition are sure to be felt in the coming months as South Congress’ landscape continues to evolve in exciting and dynamic ways.