We presently seek investments in the office sector solely in the dynamic and positively trending Austin, Texas market where our objective is to ultimately be recognized as one of the most innovative and highest office service providers. In support of our investment goals in this sector, we have formed a joint venture with two leading Austin firms providing leasing for and management of Class A office properties.
We are bullish on the Austin office sector for many of the same macro-economic and demographic criteria that support our investing in its multifamily sector; however, the following are additional rationale for our investing in Austin office assets:
- We forecast a growing demand by tenants preferring high-quality office buildings and other facilities in Austin.
- Austin’s lack of available sites and the difficulty of receiving the necessary approvals for development constitute high barriers to the creation of new supply, thereby increasing the value for skill, financial engineering and diligence required to successfully acquire, develop, finance and manage high-quality properties.
- We believe there are and shall be increasingly more complex, and technically challenging office investment opportunities that our local expertise and the skills of our management team shall be uniquely suited to capitalize on.
- Because of Austin’s diverse tenant base, including its growing technology economy, we foresee increasing demand for high-quality office properties designed to meet the demands of today’s tenants who require sophisticated telecommunications and related infrastructure and support services.
- Austin’s strong population and economic growth are expected to foster redevelopment opportunities in the office sector, thereby improving or sustaining returns through repositioning (through a combination of capital improvements and shift in marketing strategy), changes in management focus and re-leasing as existing leases terminate.