CenterPoint Properties Marks Arrival in Austin, Texas, with Low-Coverage Infill Acquisition
Posted By Staff Writers On December 8, 2021 @ 10:00 am
OAK BROOK, IL – CenterPoint Properties has expanded its Texas investments into the Austin industrial market, acquiring the low-coverage infill distribution facility at 3830 Promontory Point. The company’s first transaction in the fast-growing Austin market comes eight years after it began buying up millions of square feet of space in Houston.
CenterPoint’s Senior Vice President of Investments, Rives Nolen, said the purchase is not a one-off. Instead, he says it reflects the company’s overarching strategy of buying locationally advantaged real estate in the nation’s best markets, and his team considers Austin to be one of them.
“The Southeast Austin submarket has emerged as a premier last-mile location because of its immediate highway access and proximity to central Austin. Industrial land near the Interstate 35 and Highway 71 interchange has become scarce,” he said. “Industrial facilities this close to downtown are attractive to a wide range of users and increasingly difficult to replicate as Austin continues to grow. CenterPoint will be in the Austin market for a very long time making purchases like this,” Nolen added.
The combination of the facility’s amenities and strategic location proved alluring to the CenterPoint Investments team. The 68,427-square-foot facility covers just 26 percent of the nearly 6-acre property, accommodating parking for nearly 200 vehicles. The climate-controlled warehouse has clear heights up to 24 feet.
The Promontory Point site is 6 miles south of downtown Austin and on the cusp of some of the city’s most affluent neighborhoods. It’s located at the intersection of I-35 and Highway 71, giving its long-time tenant outstanding access to its high-end clientele.
Austin is being lauded as one of America’s most desirable cities for both living and business. Its population has grown by more than a third in the past decade and is projected to double by 2050. Austin has also become the tech world’s darling as companies have flocked there in recent years to tap into its well-educated workforce. Tesla made headlines by being the latest to migrate there from the Bay Area. Its Gigafactory Texas facility is under construction approximately 10 miles from the Promontory Point site. Samsung recently announced a $17 billion investment to build a chip plant in Taylor, which will be its second semiconductor plant in the Austin area.
“CenterPoint has made a name for itself by being a long-term investor in high-barrier markets with robust economic fundamentals,” Nolen offered. “Our goal is to continue that tradition as we build our portfolio in Austin.”
Dom Espinosa of JLL Capital Markets brokered the transaction.
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CenterPoint is an industrial real estate company made up of dedicated thinkers, innovators and leaders with the creativity and know-how to tackle the industry’s toughest challenges. And it’s those kinds of problems—the delicate, the complex, the seemingly-impossible—that we relish most. Because with an agile team, substantial access to capital and industry-leading expertise, those are exactly the kinds of problems we’re built to solve. For more information on CenterPoint Properties, visit centerpoint.com, follow @CenterPointProp on Twitter or engage with us on LinkedIn.