A fully leased office campus in Southeast Austin is hitting the market, offering investors a rare mix of stabilized income and infrastructure-heavy design.
Austin-based Zydeco Development is selling its MetCenter A&B campus, a two-building, 138,850-square-foot property at the corner of Metropolis Drive and MetCenter Road, completed in 2020, with an asking price of $65 million. The deal pencils out to a low-7 percent initial yield, according to the Austin Business Journal.
According to marketing materials, the buildings are 100 percent leased to three tenants with long-term commitments stretching well into the next decade. The Austin American-Statesman’s lease runs through 2031, while Texas Reliability Entity and the U.S. Department of Veterans Affairs are locked in through 2037 and 2039, respectively. The weighted average lease term sits at roughly 10.5 years, positioning the campus as a bond-like income play, according to the outlet.
The $65 million asking price is more than double the property’s $31.9 million appraisal by the Travis Central Appraisal District.
Zydeco’s sales strategy relies heavily on the project’s infrastructure. The 14.1-acre campus includes dual on-site electric substations tied to separate grid sources, redundant telecom systems with multiple fiber providers and triple-redundant water service, according to the publication.
The property sits just west of Austin-Bergstrom International Airport and within a short drive of downtown, placing it in a corridor that has attracted a mix of industrial, flex and back-office users priced out of the urban core.
The Cushman & Wakefield listing is the latest chapter in Zydeco’s decadeslong buildout of MetCenter, a 550-acre master-planned business park it has been developing since the early 1990s, according to the publication. The firm has periodically monetized pieces of the project, including a 2021 sale of more than 600,000 square feet to San Francisco-based Graymark Capital and Miami-based BentallGreenOak.
Even as broader office demand remains uneven, fully leased, newer buildings with durable tenancy might draw investor interest.
— Eric Weilbacher
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