AUSTION, TX – Shorenstein Properties, LLC has entered into a new venture to capitalize the development of two office buildings located within a 304-acre mixed-use community known as The Domain in northwest Austin, Texas. The venture, terms of which were not disclosed, was completed with Deutsche Asset & Wealth Management (formerly RREEF Real Estate) and its developer, Austin-based Endeavor Real Estate Group. The transaction includes an option to participate in the development of a third building. This represents Shorenstein’s first investment in Austin.
The two fully designed and entitled office buildings, to be known as Domain 2 and Domain 7, are five and six stories and total 139,675 s.f. and 221,886 s.f., respectively. The venture will break ground on Domain 2 later this month and has preleased 100 percent of the office space to HomeAway, Inc., the world's leading online marketplace of vacation rentals. HomeAway is headquartered in downtown Austin and will expand its operations to Domain 2 upon completion in 2014. Domain 2 includes just over 25,000 s.f. of ground floor retail, which is available for lease, as well as adjacent structured parking.
The venture will commence construction of Domain 7 later this summer. The building has been designed to feature 33,000 s.f. floor plates, includes structured parking, and is available for lease.
Commenting on the purchase, Douglas Shorenstein, Chairman and CEO, Shorenstein Properties, LLC, said: “We see this as an excellent opportunity to make our first investment in Austin, a market which we have considered for some time due to its strong employment growth and office demand drivers. The opportunity to participate, with highly regarded partners and substantial preleasing, in a multi-building development in a unique, mixed-use environment such as The Domain was highly attractive,” he added.
Shorenstein completed the capitalization on behalf of Shorenstein Realty Investors Ten, L.P.
About Shorenstein Properties LLC
San Francisco-based Shorenstein Properties LLC (www.shorenstein.com) is one of the oldest and most successful private real estate investment companies active throughout the United States in the acquisition, development, ownership and management of office and mixed-use properties. Since its beginning in 1924, the company has evolved from a regional real estate operating company to an active national investor and manager of co-mingled institutional capital. Shorenstein provides asset management, leasing, property management and construction services to the properties in its portfolio through its wholly owned property services affiliate, Shorenstein Realty Services.
About Endeavor Real Estate
Endeavor is an Austin-based, full service commercial real estate firm formed in 1999 by former executives of Trammell Crow. The company is focused on the acquisition and development of retail, office, industrial, and multi-family properties. With more than 70 employees, Endeavor is one of the largest real estate firms in central Texas.
About Deutsche Asset & Wealth Management – Real Estate
Deutsche Asset & Wealth Management’s real estate investment business (formerly RREEF Real Estate) has been investing in real estate assets for more than 40 years. As part of the Alternatives and Real Assets platform, this business today has more than 450 employees located in 21 cities around the world and $48.8 billion in assets under management*as of December 31, 2012, and offers a diverse range of strategies and solutions across the risk/return and geographic spectrums, including core and value-added real estate, real estate securities, real estate debt and opportunistic real estate. The real estate investment business employs a disciplined investment approach and aims to deliver superior long-term risk adjusted returns, preservation of capital and diversification to its investors, which include governments, corporations, insurance companies, endowments, retirement plans, and private clients worldwide. To learn more about Deutsche Asset & Wealth Management's real estate investment capabilities, go to www.rreef.com.
About HomeAway, Inc.
HomeAway, Inc. (NASDAQ:AWAY), based in Austin, Texas, is the world's leading online marketplace of vacation rentals, with sites representing over 742,000 paid listings of vacation rental homes in 171 countries. HomeAway® offers an extensive selection of vacation homes that provide travelers with memorable experiences and benefits, especially more room to relax, for less than the cost of traditional hotel accommodations. The company also makes it easy for vacation rental owners and property managers to advertise their properties and manage bookings online. The HomeAway portfolio of websites includes HomeAway.com, VRBO.com and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; HomeAway.es, Toprural.com in Spain; AlugueTemporada.com.br in Brazil; and HomeAway.com.au in Australia.
In addition, HomeAway operates BedandBreakfast.com, the most comprehensive global site for finding bed-and-breakfast properties, providing travelers with another source for unique lodging alternatives to chain hotels. For more information about HomeAway, please visit www.HomeAway.com.
* Excludes infrastructure securities assets under management, which were previously reported under the RREEF Real Estate business.