823 Congress Street

Austin, TX


Property Overview

Brickman acquired a 66.6% fee simple and 33.3% leasehold interest in 823 Congress, a 100% fee simple interest in the Garage located at 900 Brazos, and a leasehold interest in the Surface Lot located at 109-117 E 9th Street. The Property, totaling 187,794 square feet , was constructed in 1970 and is located in Downtown Austin, Texas. The Garage at 900 Brazos is a 5-story structure with 196 spaces. The Surface Lot is a 9,400 square foot site with 24 striped spaces.

Property type: Office

Investment type: Equity

Size: 187,794 SF

Investment date: October 2016
 

Investment Thesis

823 Congress Street is located in Austin’s thriving CBD market which, at the time of acquisition, had a 5.6% vacancy for Class A & B office. The property includes a 196 space parking garage located at 900 Brazos and a 24 spot surface lot located at 109-117 East 9th Street in a parking-constrained CBD with increasing parking needs. In addition, there is conference space, permanent food truck service, 24/7 security and a 7-Eleven convenience store in the lobby level.

Brickman’s $63.0 million acquisition price represented a favorable basis relative to recent transactions in the market.  Brickman’s $335 per square foot purchase price was 28% lower than the average $467 per square foot price of comparable Class B sales.

823 Congress Street