Generational, Aquila scoop office building
Buyers plan renovations to Hartland Plaza in downtown Austin
A downtown Austin office building recently sold, and the buyer has plans to add amenities to the site.
Generational Commercial Properties and Aquila Commercial bought the four-story, 184,000-square-foot Hartland Plaza, located at 1717 West 6th Street, from Los Angeles-based CIM Group, the Austin Business Journal reported. Terms of the deal weren’t disclosed, but the property was valued for tax purposes at $88 million last year, according to Travis Central Appraisal District.
JLL brokered the deal, representing both sides. JLL helped the buyers secure acquisition financing with a $50 million loan from VeraBank.
The four-story building, constructed in 1984, sits on 3.4 acres off Mopac Expressway, just west of downtown. Hartland Plaza is 92 percent leased, including tenants such as Aquila, Zello, Rev and Discovery Practice Management.
Joe Llamas, president of Generational Commercial Properties, plans to build upon the previous renovations made in 2017, which included a communal lounge, gym, conference center, restaurant, salon, health spa and upgraded heating and air conditioning systems. The property also has underground parking and a four-story garage adjacent to the building, totaling 633 spaces, the outlet reported.
Generational is known as Apple’s real estate developer in Austin, and it has a seven-story office project under construction, called Zilker Point, which is expected to be completed in August 2024.
Austin has led the way in bringing workers back to the office as commercial markets across the country struggled to rebound from remote work trends. In May 2022, it was reported that the city had the highest rate of return for its downtown buildings in the United States, with a roughly 59 percent occupancy rate.
Austin’s office market dealt with recent setbacks as tech companies decamped and the city got overzealous with new development projects.