The recapitalization of an East Austin office complex paid off in the form of a recent 20,000-square-foot lease from furniture wholesaler Four Hands.
Fenway Capital Advisors, Lincoln Property Company and the KOR Group built out 46,000 square feet of spec office suites at Eastbound, a two-building office complex at 3232 East Cesar Chavez Street, earlier this year. The cost wasn’t disclosed.
Austin-based Four Hands took the Eastbound lease to accommodate 142 workers, because it had outgrown the office space at its headquarters showroom, at 2090 Woodward Street, according to a news release from Lincoln. Four Hands has about 300 employees in Austin.Â
Lincoln’s Trish Williams handles leasing at Eastbound.
The four-story complex includes rooftop terraces, a fitness center with yoga room, a bike-storage area and a dog run. It also has a restaurant space, which is for lease. The office spaces feature private balconies, and the parking garage has direct access to every floor.
Lincoln and Kor delivered the building in 2022. Fenway was a minority investor until this year, when it became the 234,000-square-foot complex’s primary equity partner. Fenway injected capital that allowed the ownership to pay down a construction loan and take on an aggressive leasing strategy that included the spec buildouts.
Other tenants of the building include landscape architecture firm TBG, and Furniture Marketing Group.
The Austin office market is experiencing record-high vacancy rates, reaching 25.2 percent in the second quarter, due to development deliveries and decreasing demand, particularly from the tech sector. PayPal notched one of the biggest office leases of the year, signing for 90,000 square feet in Stonelake Capital Partners’ Domain Tower 2 recently.
As is the case with markets across the country, newer, high-quality office spaces have a leg up in leasing as companies vie for top workers and attempt to lure employees back to the office. That trend is evident in law firm Pillsbury Winthrop Shaw Pittman’s recent deal to occupy 28,000 square feet in The Republic, at 401 West 4th Street, which is being developed by Lincoln Property Company, Phoenix Property Company and DivcoWest.
—Rachel Stone
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