Drawbridge Realty Trust sells property to TCEA in novel deal

Apr 11, 2014
Austin Business Journal

Drawbridge Realty Trust LLC found a creative solution for Texas Computer Education Association by subdividing a two-building campus and selling the organization one of the buildings


The San Francisco real estate investment trust owned the campus at 3100 Alvin Devane Blvd, and the education association wanted to own its own building. In a process that took about five months, Drawbridge engaged Kristi Stotts and Bob Burton of Winstead PC and Talley Williams of Metcalfe Wolff Stuart & Williams LLP to assist with the legalities of dividing the property


“The sale of this building to an owner-user demonstrates the tightening fundamentals of the Austin office market and lack of available options for owner-users,” said Chris Elmendorf, vice president of investments for Drawbridge


TCEA paid $2.9 million for the 37,297-square-foot building. Andy Thomas of HPI Corporate Services represented Drawbridge in the transaction, and Victor Young of Capital City Partners Inc. represented TCEA


The association, which promotes the use of technology in the classroom, plans to renovate the space and move from its current facilities at 8134 Exchange Drive. The new site is on East Ben White Boulevard near Montopolis Drive southeast of downtown


Drawbridge will continue to market the adjacent 81,116-square-foot building, either for lease or sale


Drawbridge has been increasing its footprint in Austin in recent year. It purchased the Alvin Devane property in September 2012 and has been a leader for developing wet lab space in a market where that specialty niche is rare


Elmendorf said more acquisitions are in the pipeline, but declined to disclose details. Drawbridge currently owns Stonecreek Park at 3300 Duval Road, 3208 Red River St. — which the Austin Business Journal wrote about recently— and 1624 Headway Circle


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