PUBLICATION: AUSTIN AMERICAN-STATESMAN
A developer is set to start work on a seven-story office building that will rise on South Lamar Boulevard just south of Lady Bird Lake.
Demolition has begun on a one-story former Schlotzsky’s restaurant on the property, and construction of the office building, called Zilker Point, will follow. The 1.26-acre site, at 218 S. Lamar Blvd., is just south of downtown Austin and next to Zach Theatre.
The developer, Austin-based Generational Commercial Properties, led by founder Joe Llamas, has obtained a $124 million construction loan from New York-based MSD Capital. MSD Capital is a private investment firm that manages the assets of Dell Technologies founder Michael Dell and his family.
When it is completed in two years, Zilker Point will have 192,00 square feet of office space, 15,000 square feet of retail space and amenities on the ground floor, and 635 parking spaces. Designed by the architecture firm of Runa Workshop, the office project will have a tenant fitness center, a rooftop terrace and a community art gallery.
Generational Commercial Properties is partnering on the project with San Francisco-based DivcoWest. Generational Commercial Properties also developed 801 Barton Springs, a midrise building on Barton Springs Road across from the Palmer Events Center.
Work is starting on Zilker Point as the Austin-area office market continues rebounding from the COVID-induced slump and benefiting from growth in its technology sector by companies including Google, Indeed, Amazon, Apple, Facebook, Tesla and Oracle.
In the part of town where Zilker Point will rise, “demand has been strong for Class A (top-tier) office space in neighborhoods south of the river on a consistent basis,” said Matt Frizzell, executive director in Austin at Cushman and Wakefield, a global commercial real estate services firm… READ MORE.