Stephen Ross’ Related Companies has officially closed on 500 South Congress Avenue — a former asset of Nate Paul’s World Class Holdings.
The New York-based real estate titan’s bid of $65 million was approved by a bankruptcy judge on September 15 — provided Related closed on the deal by the end of the month. Related followed through and closed on the purchase on the morning of September 28, according to the Austin Business Journal.
The six-acre site along South Congress encompasses two commercial buildings with more than 70,000 square feet of office space, plus apartments and the popular bar Ego’s.
Rising Tide Investment, a shell company tied to Paul’s World Class Holdings, originally won the bankruptcy auction with a bid of $95.1 million, but opted out in late August. Then it was NIA ATX LLC’s chance to follow through with its $95 million bid, but the firm reportedly tried to extend the closing deadline. As a result, Chapter 7 Trustee Randolph N. Osherow expressed concerns about the Austin-based NIA ATX LLC’s ability to close on the property, and approved Related’s much lower third-place bid of $65 million.
The proceeds will be divided into several shares, says ABJ. The senior secured lender, New York-based Kennedy Lewis Investment Management, gets about $47.8 million. Travis County was paid about $1.1 million for allowed 2021 taxes with an additional $705,063 reserved for proration and reconciliation of 2022 ad valorem taxes as of the closing date. The trustee’s sales agent will receive a court-ordered 1 percent commission of $650,000, while the estate receives $14.9 million.
Read more
Commercial
Austin
Stephen Ross’ Related swoops in on Nate Paul’s South Congress site
Commercial
Austin
La Corsha moves forward with $24M South Austin hotel
— Maddy Sperling