Major Retail Property Acquisition on Austin’s Popular South Congress Avenue
In the heart of the always bustling South Congress Avenue in Austin, a significant piece of real estate has changed hands. An announcement stemming from JLL (Jones Lang LaSalle Inc.), among the top-tier commercial real estate and investment management companies, has indicated the acquisition of Saint Vincent, a mixed-use project on South Congress and E. Gibson St.
Substantial Retail Occupancy in Saint Vincent
Since its construction in 2018, Saint Vincent has boasted a 100% lease rate. Among its retail tenants are King Ranch Saddle Shop, Madewell, Marine Layer, Howler Bros, and Garrett Leight while office spaces are occupied by John Deere. Located at 1329-1333 S. Congress, the property stretches over 21,185 square feet, representing a highly sought-after real estate asset in the district. The area has consistently maintained retail occupancy levels above 95% for the past decade, according to the recent press release from JLL.
Changes Before and After
Over the years, South Congress has witnessed a wave of transformations, evolving from a neighborhood known for its night life into a popular shopping, dining, and entertainment district. However, escalating rent prices have forced a number of local businesses to relocate.
The Travis Central Appraisal District valued the Saint Vincent property at $11.6 million this year. However, market values often significantly exceed appraised values.
The Unnamed Buyer and Seller
JLL’s retail capital markets team which includes Chris Gerard, Ryan West, Erin Lazarus, Shea Petrick, Megan Babovec, and Ben Pollack, represented the seller and found a buyer for the Saint Vincent deal. The purchase price has not been disclosed publicly.
A cursory peek into the appraisal district records suggests that the previous owner had an address listed in New York for Clarion Partners. However, the new buyer, according to reliable real estate sources, is Austin-based Pennybacker Capital. Pennybacker Capital is an extensive investment firm, managing $3.9 billion in assets and having raised $250 million to date.
The Pennybacker Vision
Pennybacker has a penchant for acquiring and revitalizing underperforming properties in key growth markets. With offices in North Carolina, Denver, and New York in addition to its Austin headquarters, Pennybacker’s influence crosses multiple regions. From this exciting acquisition, it is clear that the firm is looking to extend its successful streak in property redevelopment.