Press Release: Aquila tapped to market SW Austin expansion by Stratus
Jul 20, 2007
Aquila Commercial
Stratus plans 180,000 sf office expansion in SW Austin
Company taps Aquila Commercial to handle marketing efforts
AUSTIN - July 20, 2007 - Two new office buildings will dot the Southwest Austin office landscape by next year, thanks to Stratus Properties Inc. (NASDAQ: STRS).
Stratus is planning to add two office buildings with a combined total of 180,000 square feet to its Lantana campus off Southwest Parkway. Construction on the project is expected to begin later this year and take approximately 10 months to complete.
The Class A office buildings will be three stories each, and feature dramatic lobby finishes, structured parking and be weaved into the beautiful setting on Southwest Parkway with an abundance of existing and added, natural Hill Country landscaping. The 180,000 square feet will join four other office buildings with a combined total of 290,000 square feet - bringing the total amount of office space in Lantana up to 470,000 square feet.
Two new office buildings wrapped up construction in Southwest Austin during the last quarter of 2006, namely Stratus' 7500 Rialto II and Hill Partner's San Clemente - adding a combined 167,500 square feet to the sector. Despite those additions, Southwest Austin continued to post one of the lowest vacancy rates in the city at just 8.5 percent at the end of the second quarter, according to a market study by Oxford Commercial. The report also found the sector posted the region's second highest rental rates at .32 per square foot, behind the Central Business District.
To help market the property, Stratus turned to its long-time Austin broker, Bart Matheney, and his new company, Aquila Commercial. Matheney left CB Richard Ellis at the beginning of the year to launch his new company in conjunction with other local heavyweights from the offices of The Staubach Co. and Trammell Crow.
"I am extremely excited to be continuing a long-term relationship with Stratus. Lantana has been a hugely successful project with the incubation and dramatic growth of Silicon Laboratories, the home of AMD's world-class, environmental showcase headquarters facility and ArthroCare's recent relocation of its headquarters to the property," Matheney says. "We're excited about the next phase of this project and continuing with Lantana's legacy of responsible, sensible and quality development in the booming southwest market."
In April 2006, Stratus sold 58 acres to Advanced Micro Devices Inc. (NYSE: AMD), where the company is building an 825,000-square-foot corporate campus. In August 2006, ArthroCare Corp. (Nasdaq: ARTC) announced a 10-year lease to occupy 40,000 square feet on the first floor of 7500 Rialto, Building Two, which is in Lantana. Matheney handled the lease negotiations on behalf of Stratus.
Lantana is a 500-acre, mixed-use development located on Southwest Parkway, immediately south of the Barton Creek community. It offers convenient access to retail centers, area highways and the Austin Bergstrom-International Airport. The property is fully entitled for more than 2 million square feet of office and retail development on the 19 existing tracts.
Currently, the Lantana development features four buildings developed by Stratus Properties, two luxury apartment complexes, 139 condominium units and 330 single family home sites.
About Stratus
Stratus is a diversified real estate company engaged in the acquisition, development, management and sale of commercial, multi-family and residential real estate properties located primarily in the Austin, Texas area. For more information, visit: www.stratusprop.com.
About Aquila Commercial
Aquila Commercial LLC is a full-service commercial real estate firm based in Austin, Texas. Launched in January 2007, a group of six core founders have a combined total of more than 80 years of direct industry experience working for major national companies from CB Richard Ellis, Staubach and the Trammell Crow Co. Recognized by their peers and publications as some of the top producers in their respective disciplines, Aquila Commercial seeks to emulate Aquila, Zeus's eagle, known for flying higher and having the sharpest vision of any creature on earth. For more information, visit: www.aquilacommercial.com.
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