An ownership restructuring of Eastbound, a project planned for a pre-pandemic office market and delivered to a much-changed one in 2022, has brought an influx of new capital and a repositioning plan.
The 233,550-square-foot property at 3232 East Cesar Chavez Street, across the road from Jacoby's Restaurant & Mercantile in East Austin's Govalle neighborhood, was developed for small-to-midsize companies seeking move-in ready space.
California-based Fenway Capital Advisors, formerly a minority investor in Eastbound, recently became the primary equity partner of co-developers Lincoln Property Company and the KOR Group, hoping to better position the property with a new strategy aimed at the current market.
“We’ve secured new capital and paid off our construction loan, which allows us greater flexibility to meet the market,” said Lincoln's Seth Johnston. “We are now in a position to fund tenant improvements, offer move-in ready space, and execute leases.”
The recapitalization of the East Austin office is spurring more aggressive leasing efforts, including spec tenant improvements already underway, according to a Thursday press release.
The ownership group 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.
Lincoln and KOR broke ground on Eastbound in May 2020 and delivered the project’s
two four-story buildings in mid-2022. Landscape architecture firm TBG and Furniture
Marketing Group are tenants in parts of the site.
Eastbound has a fitness center with a yoga room and spa showers, bike storage, a tenant lounge, a fenced-in dog run, an attached parking garage with direct access to every office floor, and potential restaurant space with outdoor seating. The buildings also have outdoor work areas that include a courtyard, rooftop terraces, and private balconies.
