Press Release: New Office Tower to Change Western Skyline of Austin's Core
Jul 18, 2008
Aquila Commercial
New Office Tower to Change Western Skyline of Austin’s Core
Most of the office space in 115,000-square-foot tower pre-leased
AUSTIN – July 18, 2007 – The skyline of the western edge of Austin’s urban core is about to change as a new, 90 percent pre-leased office building breaks ground on July 18.
Construction on the eight story, 115,000-square-foot, Class A office building named “Capstar at Compass Plaza” is anticipated to take approximately one year to complete. Its location at the southeast corner of MoPac Expressway (Loop One) and Fifth Street lends itself to prominent visibility from both major arteries. The new building marks the first major office tower to begin construction in Austin’s urban core since the Frost Bank Tower broke ground in 2001. The project’s name reflects the major tenants that are on board the new project.
A trio of companies affiliated with Austin-based Capstar Partners, LLC have pre-leased approximately 82,000 square feet in the new building (composed of approximately 27,000 square feet per tenant). The three companies are: Capstar Investment Partners, LP, Harden Healthcare Texas, LP (and its affiliated home healthcare company, Girling Healthcare, Inc.) and DMX Inc. All three lessees are wholly-owned by, or under the control of, R. Steven Hicks, the founder of Capstar Partners, LLC. Compass Bank has pre-leased approximately 20,000 square feet, including a 4,000 square foot branch location on the ground-floor retail area.
With most of the office space spoken for, Capstar at Compass Plaza boasts a net 90 percent pre-leased level – a nearly unheard of statistic in the Austin office market. Aquila Commercial handles the leasing for the property, and executives with the commercial real estate firm say they are presently in discussions with retailers for the remaining 3,000-square-foot of retail as well as several users for the balance of the office space.
“Many unique features led to the market responding so favorably to this project,” said Bart Matheney, Aquila principal and co-founder. “It sends a resounding message to the market that there are tenants in a growth mode that are capable and willing to commit to a high quality project in a stellar location.”
Aquila is currently also working on another preleasing assignment for Hines at Museum Tower, a 30-story, 425,000-square-foot office building being built in downtown in conjunction with the Austin Museum of Art.
Features that attracted the slate of office tenants to Capstar at Compass Plaza include: a significant number of green building features, future signage visible from MoPac Expressway, accessibility to the hike and bike trail, balconies overlooking Lady Bird Lake on three sides of the building, a parking garage underneath the office space and retail shops within walking distance. The developer of Capstar at Compass Plaza is seeking LEED certification through the U.S. Green Building Council, with “green” elements such as energy efficient lighting, native landscaping and use of recycled materials throughout the building, particularly in the structural elements.
The developer is a team of principals with Austin-based real estate companies Sage Land Co. and Capital City Partners. Since 1992, Bill Burrow and Pete Lamy of Sage Land Co. patiently assembled various land tracts for the existing Hartland Bank Building, the parking garage, and the proposed Capstar at Compass Plaza which together make up one of the best office locations in the City of Austin.
“Capstar at Compass Plaza will continue this legacy of great location, good design, local ownership and operation,” said Chris Whitworth, principal with Capital City Partners.
Matheney also says the project is significant because it helps expand the boundary of what Austinites consider “downtown” further west – all the way to MoPac.
Mike Murphy and Chad Barrett, also principals with Aquila, worked along side Matheney on leasing the property. Sage Land Co. is the same developer behind the Hartland Plaza property on the north side of Fifth Street. Sage Land recently completed construction on a 340-space parking garage with 13,000 square feet ground-floor retail space immediately west of Hartland Plaza.
Benjamin M. Hanson and Robert Hicks, each with Capstar Partners, LLC, and Michelle McDonald, founder of Media Realty Partners, Ltd., represented Capstar, Harden and DMX in their respective leases, while Jay Lamy and Sloan Spaeth represented Compass Bank. Financing was procured by Jim Lemos of Texas Capital Realty. The project’s design and construction team is: general contractor Harvey-Cleary Builders, architect firm Susman Tisdale Gayle, building design firm Communication Arts, Inc., project manager Construction Services of Texas, as well as site design from Hanrahan Pritchard Engineering, Inc. and Coleman and Associates.
About Aquila Commercial
Harkening the powerful and noble Aquila eagle, 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 to 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 the Aquila eagle’s reputation for flying higher and maintaining the sharpest vision. For more information, please visit: www.aquilacommercial.com.
About Capstar Partners
Capstar Partners, LLC is a private investment firm based in Austin, Texas. Capstar Partners participates in small and middle market buyouts, real estate development, and public investing. Since 2000, Capstar has invested in a broad range of industries including media and broadcasting, healthcare services, e-commerce, financial services and real estate. For more information, please visit: www.capstarpartners.com.
About Harden Healthcare
Harden Healthcare Texas, LP (and its affiliated home healthcare company, Girling Healthcare, Inc.) is a leading provider of post-acute care to patients with various healthcare needs and medical complexities throughout the following states: Texas, Florida, Illinois, Iowa, Missouri, New York, Oklahoma, Tennessee, and West Virginia. Harden provides a complete post-acute care continuum of care encompassing long-term care, home health, and related ancillary services, including hospice, assisted living, therapy, rehabilitation and pharmacy. For more information, please visit: www.hardenhealthcare.com.
About DMX Inc.
Recognized as an international think-tank that creates brand experiences for commercial environments, DMX uses sight, sound and science as building blocks. The company's services include full motion video, music, messages and environmental scents that provide brand texture for its customers that drive repeat business. For more information, please visit: www.dmx.com.
About Compass Bank
Compass Bank is a Sunbelt-based financial institution which operates 586 full-service banking centers including 318 in Texas, 92 in Alabama, 77 in Arizona, 44 in Florida, 34 in Colorado and 21 in New Mexico. Compass Bank is a subsidiary of Compass Bancshares, Inc., a wholly-owned subsidiary of BBVA (NYSE: BBV) (MAD: BBVA). BBVA is a global financial services company with more than 0 billion in total assets, 47 million clients, 8,000 branches and approximately 112,000 employees in more than 35 countries. For more information, please visit: www.compassbank.com.
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Press Release - New Office Tower to Change Western Skyline of Austin's Core 
