August 19, 2022 9:30 AM
On behalf of Generational Commercial Properties and Fairway Real Estate, Newmark has arranged the $124 million construction financing of Zilker Point, a 206,000-square-foot future office building at 218 South Lamar Boulevard in Austin’s South Lamar CBD. The project will improve the 1.26-acre site, which is currently occupied by a one-story restaurant and paved parking areas.
Upon completion, the property will offer 192,000 square feet of office space across its top six floors, plus 15,000 square feet of retail and amenities on the ground floor, with 635 parking spaces. The property is designed to be WELL building-certified with shared and private outdoor spaces, a tenant fitness center and advanced building systems.
The Newmark team was led by Dustin Stolly and Jordan Roeschlaub, Vice-Chairmen and Co-Heads of the Newmark Debt & Structured Finance team, Senior Managing Directors Nick Scribani and Chris Kramer, and Directors Chase Tagen and Dan Morin. MSD Partners provided the loan.
The developer is positioning the boutique office product to meet the current tenant demand in a premier location. The property will provide Class A office space while offering a highly commuter-friendly office location for the burgeoning professional population in Downtown and South Austin. This asset is prominently located along South Lamar Boulevard and near Barton Springs Road. Its location serves as a nexus for Austin’s live/work/play lifestyle with immediate access to the South Lamar corridor, the downtown employment hub, Zilker Park, Lady Bird Lake and the iconic Austin neighborhoods of Zilker, Bouldin Creek and Travis Heights.
Austin has become a top choice for company migrations and has experienced a 67% increase in Class A rents since 2008. The highly coveted Central and Southern CBD areas have witnessed Class A occupancy remaining above 91% since 2014, absorbing over 3 million square feet of space. The area has a strong concentration of blue-chip technology companies, driven by Google, Indeed, Amazon, Apple, HP, Dell, Facebook, Tesla and Oracle.
Led by founder Joe Llamas, Generational is a real estate development firm specializing in office, industrial and multifamily projects. Generational develops innovative Class A real estate that incorporates innovative designs, leading technology and culture into the fabric of projects. The firm focuses on functional, institutional quality and infill real estate in Texas. Through a depth of principal knowledge, Generational also provides development management services to corporate clients. Through a unique perspective, based on years of principal transactions, Generational’s approach navigates the governmental, contractual, design, construction and delivery of high-quality real estate with a proven approach to reduce cost, increase quality and improve delivery speed.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.2 billion for the twelve months ending June 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with over 6,500 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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