COVER STORY, JULY 2008

BOOMING BUSINESS
A look at a few of Central Texas’ new and growing business parks.
Lindsey Walker

Business continues to grow in Texas, and with that growth comes the need for more office space. Not all companies want to be located in high-rise office building downtown, so business parks are a great alternative for those seeking a park-like setting with nearby (and sometimes on-site) restaurants and retail amenities. Take a look at three business parks in Central Texas that are offering companies unique space in stellar locations.

Chandler Creek Business Park
Round Rock, Texas

Chandler Creek Business Park

Located near the intersection of Interstate 35 and University Boulevard (FM 1431), Burke Real Estate Group’s master-planned Chandler Creek Business Park benefits from a high-profile site in Round Rock’s fastest growing sector.

“Chandler Creek is the largest block of undeveloped land in this corridor,” says David Sour, vice president of development for Burke Real Estate Group.

The I-35 corridor is booming with construction, specifically at its intersection with University Boulevard. A new 252,000-square-foot IKEA opened at the southeast corner of the intersection in 2006, and Endeavor Real Estate Group is building University Oaks Shopping Center, a 330,000-square-foot project that wraps around IKEA. In addition, three projects are in various stages of development at the intersection’s northeast corner: the University Commons shopping center, which will include a major grocery chain; a 440,000-square-foot outlet mall by Simon Property Group and Chelsea Property Group that recently opened; and Scott & White Memorial Hospital, which has opened a 30,000-square-foot medical office building and an adjoining 120-bed hospital.

Within the 150-acre business park — which is targeting high-tech office, service, medical office, specialty hospital and senior living tenants — construction activity is booming as well. Health Care Realty Trust recently broke ground for a $33 million, 135,000-square-foot medical office building, and Burke Real Estate Group is planning a $6 million, 40,000-square-foot medical office building, which it will deliver in 2010. Burke also is plating several 4- to 6-acre tracts that will allow for medical uses, largely office. Currently, over 300,000 square feet has been developed in the park, which either has been sold or held for lease.

“Most of Chandler Creek’s projects are either built or under construction,” Sour says. “Ultimately, the park will be complete in 5 years.”

Travesia Corporate Park
Austin, Texas

Travesia Corporate Park

Adding to the office offerings near Round Rock, North Austin’s newest business park is under way near the intersection of four major roadways: IH-35, the new SH-45 North Toll Road, the new North 1 Loop Toll Road and MoPac Expressway. Called Travesia Corporate Park, Travesia meaning “crossroads” in Spanish, the 26-acre development is a joint venture between Dallas-based Champion Partners, Newport Beach, California-based Buchanan Street Partners and Stream Realty Partners in Austin.

The total project will comprise 256,000 square feet in two different phases. Phase I will feature three buildings totalling 175,950 square feet and Phase II will feature a two-story 80,000-square-foot building.

Instead of adding to the abundance of Class A space in the market, Travesia Corporate Park will offer “value” office space. By targeting the value tenant, the park will give companies another, more affordable, option to what’s currently in the area.

“Travesia offers precisely the kind of space the market is hungry for at this time: new product in a prime location at an affordable cost,” says Tom Wiegand, partner with Champion Partners.

Matt Frizzell, senior associate with Stream Realty Partners, believes the project is ahead of an emerging market trend. Stream Realty Partners is handling the leasing for Travesia Corporate Park.

“Instead of bringing ‘more of the same’ to the market, Travesia is positioned to offer something new and unique, and I think that will serve both the market and tenants well,” Frizzell says.

Tenants at the park also will benefit from a central location to a number of amenities. La Frontera shopping center is only 1.2 miles away; Boardwalk Shopping Center sits just 1.5 miles from Travesia; Round Rock Crossing is at a distance of 1.4 miles; and numerous other restaurant and retail options at Sky Ridge Plaza, Vintage Plaza and Hester’s Crossing are no more than 2 miles from the park.

Travesia Corporate Park is part of a 200-acre mixed-use development that ultimately will include retail, multifamily and industrial space as well as single-family homes. Construction of the first phase of new flex/office space is expected to be complete by year’s end.

Brass Gateway
San Antonio

San Antonio-based Magi Development is planning more than 500,000 square feet of Class A office space for San Antonio’s Far Northwest submarket. The project, known as Brass Gateway, will comprise five office buildings, ranging in size from 80,000 square feet to 250,000 square feet.

“We are targeting tenants that need great visibility and access,” says Rick Rodriguez, president of Magi Development. “We expect some buildings to be mainly medical tenants, and a lot of space is for the financial services industry.”

The company chose the 25-acre location, off of Interstate Highway 10 and Heuermann Road, because of the shortage of Class A office space in the area. The development’s office space will be 50 percent pre-leased and 50 percent speculative, and the first building will be delivered in the last quarter of 2009.

Magi Construction is the project’s general contractor, and Magi Realty will handle leasing. As of press, no architect had been selected.

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