AUSTIN, Texas--(BUSINESS WIRE)--The Bankruptcy Court in Austin, Texas today approved the results of last week’s auction of thirteen single-story office/flex buildings and one retail strip center in one of the city’s hottest markets, The Domain. The $102,250,000 sale, brokered by Keen-Summit Capital Partners LLC, the Bankruptcy Court-approved broker and real estate advisor to Dawn Ragan, the Chapter 11 trustee in the bankruptcy of WC Braker Portfolio, LLC, USBC W.D.TX, Austin Div. Case No 22-10293-TMD, represents a nearly 36% increase over the $75.5+ million stalking horse bid.
In a commercial real estate market marked by uncertainty over interest rates, cap rates, and the viability, in general, of office buildings, Keen-Summit’s marketing efforts generated over 260 prospects who executed non-disclosure agreements and resulted in 8 “Qualified Bids” for this as-is, where-is, no contingency, quick-closing sale. This 550,000+ sq. ft. collection of properties on almost 44 acres represented a unique opportunity to own prime commercial real estate in a promising market. The final sales price represents an astounding Cap Rate of 5.07%, when the average cap rate for similar property sales, based upon the latest figures, was 6.1%.
Harold Bordwin, Principal and Co-President of Keen-Summit, conducted the auction and attributed the high sales price and low cap rate to the competitive auction environment, the upside potential for increasing occupancy rates, and the ability, as of right, to redevelop a portion of the property for multi-family use. “This property had it all, and the bidders knew the potential value, both short- and long-term,” Bordwin noted. “The trustee, Dawn Ragan, and legal counsel at Kelly Hart & Hallman LLP, executed flawlessly. We could not have asked for a better team.”
Ms. Ragan noted her appreciation of Keen-Summit’s efforts, and the success of the auction: “I was delighted with the significant efforts put forth by the Keen-Summit team, the high quality of candidates they brought to the data room and the ultimate auction, the tremendous organization of the process, and our exceptional results. Truly outstanding.”
Even with the slowdown in the Austin housing market, experts are still optimistic for the continued growth of its’ commercial market. “Austin had seen incredible growth for many years, but with the slowdown in the housing market in recent months and the pressures facing office buildings, we weren’t sure what to expect,” says Matthew Bordwin, Principal & Co-President of Keen-Summit. “Even so, we knew this would be an exciting auction, as there was so much to gain from this centrally located property. The outcome was everything we had hoped for and more.”
The portfolio is located on and about the intersections of West Braker Lane, Kramer Lane, and Metric Boulevard in North Central Austin.
