Developer will turn former Freescale site in East Austin into data center, offices.
Developer buys vacant campus, plans to offer plenty of office space.
An Austin-based developer has big plans for nearly 1 million square feet of mostly vacant office space on the city’s east side.
The complex at 3443 Ed Bluestein Blvd., once occupied by technology company Freescale Semiconductor, was acquired by developer IDM last week, a spokeswoman said. A purchase price was not disclosed.
Headed by CEO and President Chris Milam, IDM has developed projects across the United States and beyond. Locally, the company is currently working on reviving The Backyard, an outdoor concert venue in the Bee Cave area.
The sellers were a group of local investors who had rebranded the project as the One83 Office Park but hadn’t had much luck landing new tenants. Last year, they tried unsuccessfully to auction the 109-acre site online. The site’s appraised value is $7.2 million, according to the Travis Central Appraisal District.
IDM’s plans call for office space, too, but the focal point will be a data center in one of the buildings, according to Natalie Roberts, the company’s director of marketing and public relations.
The data center should open by early 2017, Roberts said, relying on an Austin Energy substation in the area and fiber lines that were installed to serve a nearby Hewlett-Packard facility. At least initially, IDM said it plans to hire an outside company to handle leasing for the data center.
“We looked at the site and vetted it to see what we thought was possible,” Roberts said. “When we saw Aus-
tin Energy has the power required to run a data center, our plan became clear. Typically, it would take years to get something like this done.”
Construction on the data center has already started. IDM worked with the original architect for the 1970s-era buildings, Roberts said, helping speed the process.
Once the data center comes online, Roberts said IDM plans to turn its attention to the remaining buildings on the site, giving them “a quick rehab” before marketing them as affordable Class B office space.
“We’re looking for those companies that can’t afford to pay $55 per square foot downtown,” Roberts said. “It’s a no-brainer from a corporate perspective.”
IDM said it expects strong interest from tech firms because of the nearby data center, but a variety of other companies are expected to join the tenant mix. With lab space available, health companies looking to be near the soon-to-open Dell Medical School at the University of Texas will likely find the site appealing, too, Roberts said.
Leasing for the office space hasn’t started yet.
“Years ago, this site was considered too far out and really wasn’t considered attractive,” she said. “Now, with all the new roads, it’s become a hub that’s just 10 to 15 minutes from the center of the city.”