AUSTIN, Texas, (February 28, 2022) – iBorrow, a nationwide private direct lender for commercial real estate, has provided a $13.9 million loan to support the acquisition and value-add renovation of a three-story, 86,910 square-foot office building situated on a 3.66-acre site in Austin, Texas, according to Brian Good, CEO of iBorrow.
“Our financing assists the borrower in acquiring and implementing a $7 million capital improvement plan at the property,” explains Good. “Based on the sponsor’s deep experience in the robust Austin market, we are confident that the strategic upgrades to the interior and exterior of the office property, which has not been renovated since 2011, will lead to significant value creation upon lease up.”
Good notes that demand for quality office space in Austin is strong and poised for continued growth, as the market saw substantial net occupancy gains in recent months, bringing overall positive absorption for 2021 to 700,999 square feet, according to a recent JLL report.
“The Austin metro has experienced one of the quickest recoveries from the pandemic-induced downturn and, despite the challenges still faced by the office sector, this property is well positioned to thrive based on its prime location,” says Good. “Between 2010 and 2020, Austin added more than 579,000 residents, making it the fastest-growing major city in the United States. The property is located within the Northeast submarket, which at this stage in the region’s growth is gaining popularity among businesses and residents seeking more accessible suburban locations at a value to urban core pricing, creating the opportunity to further capitalize on this rising demand.”
The building is currently 100% leased with a maturity date of September 30, 2022.
Good adds: “The property provides in-place cashflow and an opportunity to bring rents up to market after the current tenant vacates. The borrower plans a comprehensive renovation beginning in May, with a target completion date of October 2023.”
The property, situated adjacent to State Route 183 and Interstate 35, is located at 1200 East Anderson Lane in Austin, Texas.