Plaza on the Lake changes ownership
Plaza on the Lake, a prominent threestory office building overlooking Lake Austin and the landmark Pennybacker Bridge, has a new owner.
The buyer is an entity affiliated with Endeavor Opportunity Partners III, a discretionary fund managed by Austinbased Endeavor Real Estate Group.
Newmark’s Chris Murphy, Robert Hill and Gary Carr represented the seller, an institutional investor listed in property records as CP/IPERS Austin Lake LLC. The records list the mailing address as Clarion Partners LLC, a New York-based real estate investment firm.
Murphy said that “a highly competitive sale process” netted more than 20 offers and multiple rounds of bidding.
The purchase price was not disclosed.
In its newly released numbers for 2024, the Travis Central Appraisal District values the property at $44.1 million, up from $36 million last year.
With 120,789 square feet of space and direct frontage to Lake Austin, Plaza on the Lake is one of the most recognizable buildings in an affluent part of Southwest Austin. The building is 68% leased to tenants including Sony Interactive Entertainment, ePayPolicy, Capital Factory and SiFive Inc.
The building sits on 4.5 acres along Capital of Texas Highway (Loop 360) and Lake Austin. Originally built in 1985 and renovated in 2021, Plaza on the Lake has undergone more than $5 million in capital improvements in recent years.
Endeavor had been leasing and managing Plaza on the Lake under its prior ownership and plans to continue to own and operate the building as an office asset.
“A remarkable 89% of the current tenant roster at the property has been secured within the past three years, reaffirming the allure of this iconic asset,” Murphy said, adding that Endeavor “will achieve significant upside through leaseup of existing vacancy.”
Endeavor is among the most prolific and high-profile commercial real estate firms in Central Texas, having developed retail, office, residential and mixed-use projects, from the Domain in North Austin to Southpark Meadows in South Austin.
Endeavor also is working on plans to redevelop the former Austin AmericanStatesman newspaper site, just south of Lady Bird Lake, into a large mixed-use project with multiple high-rises.
Since its founding in 1999, Endeavor has acquired or developed more than 29.7 million square feet of real estate projects; has more than 9.2 million square feet of office, industrial and retail space under management; and has more thaan 4.3 million square feet of space under construction.