New Capital and Ownership Restructuring Better Positions Eastbound to Capture Austin Office Leasing Demand

The recent recapitalization of the East Austin office building Eastbound is spurring more aggressive leasing efforts, including spec tenant improvements that will provide small-to-midsize companies with move-in ready space.

Fenway Capital Advisors, formerly a minority investor in the 233,550-square-foot East Austin project, recently became the primary equity partner of co-developers Lincoln Property Company and The KOR Group.

With offices in Dallas and Solana Beach, Calif., Fenway focuses on creating value through acquiring and repositioning under-invested assets in markets across the southwest with strong fundamentals and positive growth characteristics.

“A high-quality building with best-in-class amenities and workspaces, Eastbound was delivered into a market that was far different than the one the original ownership team anticipated,” said Fenway Capital Advisors Managing Partner Patrick Tribolet. “By injecting new capital and resetting expectations, we’re confident that Eastbound is now well positioned to compete more effectively and succeed long-term.”

The ownership group is already underway with plans to build out approximately 46,000 square feet of spec suites with high-end finishes, providing move-in ready suites ranging from 5,000-41,000 square feet. Work is expected to be completed in early 2025.

“We’ve secured new capital and paid off our construction loan, which allows us greater flexibility to meet the market,” said Lincoln Executive Vice President Seth Johnston. “We are now in a position to fund tenant improvements, offer move-in ready space, and execute leases.”

Lincoln and KOR broke ground on Eastbound in May 2020 and delivered the project’s two, four-story buildings in mid-2022. Located at 3232 E. Cesar Chavez St., portions of the buildings are currently occupied by landscape architecture firm TBG and Furniture Marketing Group.

East Austin has traditionally attracted technology and creative service firms, which often don’t have the in-house resources to manage tenant build outs and often want to move in more quickly than the time required for permitting and construction allows. This makes move-in ready spec suite space particularly advantageous.

Eastbound offers high-end design features and amenities unmatched in the East Austin submarket such as a fitness center with a yoga room and spa showers, conditioned bike storage, tenant lounge, a fenced-in dog run, and potential restaurant space with outdoor seating. The LEED Gold certified building provides an abundance of natural light and multiple outdoor work areas that include a lush courtyard, rooftop terraces and private balconies. An attached parking garage offers direct access to every office floor.

Located less than 10 minutes from downtown Austin and the Austin Bergstrom International Airport, Eastbound’s neighbors include numerous popular East Austin restaurants and hangouts including Central Machine Works, De Nada Cantina, Jacoby’s Restaurant and Mercantile, and Lustre Pearl East.

Johnston and Lincoln Vice President of Leasing Trish Williams are overseeing leasing at Eastbound.

About Lincoln Property Company

Lincoln Property Company (“Lincoln”) is one of the largest private real estate firms in the United States. Offering a fully integrated platform of real estate services and innovative solutions to owners, investors, lenders and occupiers, Lincoln supports the entire real estate lifecycle across asset types, including office, life science, retail, industrial, data center, production studio, healthcare, government, universities, and mixed-used properties, throughout the United States, United Kingdom, and Europe. Lincoln’s combined management and leasing portfolio on behalf of institutional clients includes more than 557 million square feet of commercial space. In addition to providing third-party real estate services, Lincoln has completed over 150 million square feet of development since its inception in 1965 and has another $20 billion currently under construction or in the pipeline. For more information, visit: www.lpc.com.

About Fenway Capital Advisors

Founded in 1998, FCA is managed by principals who have over 60 years of institutional real estate investment and management experience across a variety of product types to include office, multifamily, hospitality, industrial, single tenant net lease, self-storage, and data centers throughout the United States and Europe. Primarily targeting value-add and opportunistic investments, FCA’s successful track record can be attributed to its flexible capital capabilities, creativity, and deep industry relationships to source undervalued opportunities and generate attractive risk-adjusted returns for its investors.

About The KOR Group

The KOR Group is an international real estate investment and management company with extensive holdings and development experience in commercial and residential properties. Since its inception in 1999, Kor has acquired and developed hospitality, residential, and commercial assets valued in excess of $3 billion. Central to KOR’s investment strategy is value creation through distinctive design and branding.  By fusing creative design with an agile investment and development discipline, KOR has amassed a portfolio of high performing assets and has built a signature brand translatable across its properties. KOR has acquired, repositioned and managed over 15 million square feet of residential, mixed use, hotel, office and retail space, including approximately 12,000 apartment/condo units. KOR has over 2 million square feet in the acquisition, asset management, development, or construction stage, including ground-up development, value-add repositioning, and adaptive reuse.