Austin investor converts office purchase into new leases overnight

Dec 19, 2014
Austin Business Journal

For real estate investors the rush is on to do some last minute Christmas shopping


Doug Rauls of Kucero Cos. was able to deliver a deal for his long-time client, Cheryl Ogle of Ogle Properties, which now owns 11 office buildings in the Austin area


Earlier this month Ogle purchased a 56,100-square-foot office building at 8920 Business Park Drive and Hyridge Plaza, a 30,300-square-foot office building at 8716 N. Mopac Expressway just 


down the street


Within days of closing the deal, Rauls along with partner Jeff Henley at Kucera, had dramatically improved the occupancy — including a lease with the Tech Ranch business incubator for 


11,000 square feet at the 8920 Business Park Drive Building


In fact, the Kucera team began negotiating the Tech Ranch deal two weeks before closing, largely due to the fact that Ogle already completed tenant improvements before closing on the 


buildings


Bill Roland of Granite Properties of Texas represented the sellers — different entities for each building, but sharing a common address, according to records at the Travis Central Appraisal 


District


The seller of 8920 Business Park Drive was RGK Rentals Ltd. and the seller of Hyridge Plaza was KMS Ventures. Both are located on West 25th Street TCAD records show


At closing on December 5, occupancy for the Business Park Drive building was 46 percent and for Hyridge Plaza was 54 percent


Now with the Tech Ranch deal, occupancy at Business Park Drive is 67 percent


Meanwhile Kucera negotiated a lease with Western Land Services at Hyridge for 2,615 square feet. Occupancy there currently is up to 65 percent


The parties aren't disclosing how much was paid, though TCAD sheds some light on values


The Business Park Drive property is valued at $5,781,472 and Hyridge Plaza at $2,041,669


Rauls said the Tech Ranch deal is translating into more interest by potential tenants who would like to be take advantage of entrepreneurial synergies


Tech Ranch officials in a written statement said they have ambitious programming and expansion goals for 2015 — including a more international reach. The new office space, according to 


founder and CEO Kevin Koym, will help achieve those goals


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