News Release
AMSTAR GROUP COMPLETES STRATEGIC ACQUISITION IN RESURGENT DOWNTOWN AUSTIN OFFICE MARKET
Private Equity Firm, Local Partner To Implement ‘Value-Add’ Strategy for Congress Avenue Building
AUSTIN, TX (December 21, 2006) – Amstar Group LLC announced today the acquisition of 823 Congress Avenue, a 180,000-square-foot office building in the heart of downtown Austin. In an off-market transaction, the Denver-based private equity firm partnered with T. Stacy & Associates (TSA), an experienced Austin real estate operator, to complete the acquisition. TSA will manage and lease the building going forward.
The Congress Avenue building is three blocks south of the Texas State Capitol and two blocks north of the intersection of Sixth Street and Congress Avenue, “main and main” for downtown Austin. The location was a key driver of Amstar’s interest in the asset, as the partnership intends to participate in Austin’s strengthening office market.
To date, 823 Congress has been under-capitalized, creating an immediate value-add opportunity for Amstar and TSA’s team to dramatically improve the building’s image and operations. The partnership expects to spend more than $2.5 million to enhance the building’s exterior, common areas, parking facilities and new tenant spaces.
“Tom Stacy and his team have a great reputation and record of success in Austin, and we’re fortunate to have them as partners,” said Amstar Executive Director Doug Wiley. “This investment is well positioned to benefit from our strategic infusion of much needed capital in order to take full advantage of the improving Austin office market.”
The current market fundamentals suggest Austin’s office market is improving rapidly – net absorption is strong, rent growth is accelerating, new supply is not a significant threat and the economy is growing.
“Amstar and TSA negotiated the purchase of 823 Congress in a complicated, off-market transaction. Throughout the process, the Amstar team was fast, fair and team-oriented, just what we would want in an equity partner,” said TSA CEO Tom Stacy.
“823 Congress is a perfect fit with Amstar’s value-add acquisition strategy,” said Amstar CEO Gabe Finke. “We target well-located assets in strong markets where we are rewarded for speed and certainty. This building’s Congress Avenue location is great and we are working with the best operator in the city. We are excited about 823 Congress and looking forward to doing more deals in Austin with TSA.”
About Amstar Group
Established in 1987, Amstar is a leading real estate private equity firm headquartered in Denver. The company invests nationally and internationally in value-add acquisition and development opportunities, often with local partners. In its history Amstar has acquired, developed and sold more than $2.2 billion of real estate. Amstar’s current portfolio includes office, industrial, multifamily, retail and hospitality holdings in major markets across the United States. For more information about Amstar Group visit the company’s website at www.amstargroup.com.