Cielo Property Group recently purchased an 181,000 square foot office building at 823 Congress Ave. in downtown Austin. The purchase price was not disclosed, but the Travis Central Appraisal District values the building and parcel at $21.9 million.
Located just two blocks from the Texas Capitol, the 15-story high-rise, built in 1970, is 94 percent occupied. Tenants include IBM, Texas Tribune, Amerigroup and Cielo Wind Power.
“The opportunity to purchase an asset of this size on the most recognizable street in Texas does not come along too often,” said Rob Gandy, co-founder and managing partner of Cielo. “The Texas market in general has seen a steady rise in rental rates, and we like the underlying fundamentals for the Austin office market on a long-term basis. We believe assets like 823 Congress will perform well in the coming years.”
Cielo Property Group, formerly Cielo Realty Partners, purchased the property from Amstar/Stacy 823 LP, a partnership between Denver-based Amstar and Austin-based CapRidge Partners, which acquired the property in 2006. Todd Mills of CBRE Autin marketed the building on behalf of Amstar.
Kevin Black, director of CapRidge, said the call-for-offers deadline was Nov. 1st and several bids were submitted.
Cielo invests in undervalued commercial real estate primarily in Texas and currently owns 15 assets including retail, office and multi family properties. Founded in 2010 by Gandy and Bobby Dillard, the company has been very active in the last 18 months.
Last April the group acquired three historic office and retail buildings in the 300 block of Congress Avenue, which have since been combined into one address at 325 Congress Ave.
In July the company bought the 240,000-square-foot Chase Bank/Neuhaus Tower in McAllen, Texas. The 17-story building is the tallest building in the Rio Grande Valley.