Iconic Mixed-Use Asset for Sale on Austin’s Most Famous Street

Tuesday, June 4, 2019

HFF, on behalf of the owner, is marketing an adaptive mixed-use building totaling 19,870 square feet in the historic South Congress District of Austin, Texas. The newly constructed building, which is known as Saint Vincent, is 95.5% leased and features 9,060 square feet of high-street retail and 10,810 square feet of creative office space.

Situated on nearly two acres at 1329-1222 Congress Avenue, the retail portion of the property was designed by Lake Flato and is leased to nationally recognized tenants, including Tecovas, Madewell, Marine Layer and Garrett Leight California Optical. The office portion of Saint Vincent is leased to Tecovas and features a creative office finish inspired by renowned designer Michael Hsu with balconies on each floor providing panoramic views of Downtown Austin. Saint Vincent’s pristine architecture, unrivaled tenant base and dynamic location in Austin’s South Congress District combine to make it one of the most compelling mixed-use offerings in the United States.

South Congress is the nexus of Austin’s live, work, play lifestyle with immediate access to the world-renowned South Congress corridor, the downtown employment hub and iconic Austin neighborhoods. “SoCo” is Austin’s only truly walkable strip of shopping and entertainment venues featuring an extensive mix of shops, restaurants, bars, food trailers, music venues and galleries, making it one of the strongest retail destinations in the country. The property is walking distance to many of the area’s finest recreational destinations, including Lady Bird Lake, Auditorium Shores, Barton Springs Pool, Zilker Park, Butler Hike and Bike Trail and bat viewing on Congress Avenue Bridge.

Austin Mixed-Use Building for Sale Investment Highlights

  • Irreplaceable Asset:  The newly built mixed-use asset has frontage on South Congress Avenue and direct access to Downtown Austin. The property has attractive first floor retailers, high quality creative office space and innovative architecture, filling a distinct tenant demand for the district. Its unique location on the hard-corner of a city block allows for seamless accessibility via a lighted intersection and crosswalk in the heart of the South Congress District in addition to having available parking on-site for tenants, which serves as a competitive advantage for both retail and office tenants and allows for additional transient revenue.
  • Unrivaled Tenancy:  Saint Vincent is 95.4% leased to four quality, nationally recognized tenants, Tecovas, Madewell, Marine Layer and Garrett Leight, which represent a variety of industries and a weighted average lease term of 8.3 years. There is consistent value creation due to long-term in-place leases, locational attributes, mark-to-market opportunities, on-site parking, favorable BOMA considerations and a staggered roll profile. Retail tenants in the district have historically achieved market-leading sales, providing justification to landlords for charging top of the market rental rates.
  • Strong Submarket Fundamentals:  Boasting the highest sales in the city, the South Congress retail corridor comprises approximately 415,000 square feet of established street front shops, restaurants, cafés and entertainment venues. Due to immense barriers to entry, the retail corridor has an average occupancy level of 99% since 2010. Encompassing nearly 140,000 square feet, the South Congress office corridor is collectively 94.7% leased. The office corridor has seen substantial rent growth of 42% over the last two years.
  • High Barriers to Entry:  Restrictions to future development in the area are a direct function of the challenges associated with the corridor’s longstanding municipal and state-owned sites and the lack of substantial contiguous space with street frontage. The fragmented nature of South Congress’ privately-owned sites require mass assemblage of multiple parcels to achieve developable scale. Permitting and approval for new development is further hindered by the notoriously recalcitrant neighborhood associations of the surrounding area, positioning Saint Vincent as a truly irreplaceable development. The South Congress Retail District continues to evolve with transformative projects like River South, 801 Barton, Music Lane and The Austin American Statesman.

Saint Vincent offers a rare generational opportunity for an investor to acquire a trophy retail asset in the heart of Austin’s South Congress Entertainment District. For more information on this commercial real estate listing, please contact Cathy Nabours or Walter Saad in HFF’s Austin office.  To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

Holliday GP Corp. ("HFF") is a Texas licensed real estate broker.

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