The overview
The University Park office building and parking garage sits on 1.58 acres at 3300 N. I-35, Austin, just off the highway north of St. David's Medical Center. The city first moved to acquire the 17-year-old building late last summer before negotiations fell through, according to Financial Services Department spokesperson Kimberly Moore. Talks restarted in February leading to this spring's acquisition approval.
City Council authorized the $26 million property acquisition, plus $95,000 for closing costs and $58,186 for due diligence, on April 24. The city will back the purchase by issuing $26.2 million in bonds. An independent appraisal supports that cost, according to the city, and property is publicly assessed at $58.07 million.
The nearly 207,000-square-foot building is currently about 15% occupied, according to the city and its listing on AQUILA Commercial. Current tenants are expected to remain and generate some revenue for Austin until their leases end.
University Park is one of several multi-million dollar, debt-backed acquisitions recently approved made to upgrade city facilities including a Southeast Austin office campus, new public safety headquarters and training center expansion.
The details
No specific city departments have been approved for relocation to the new offices yet, although the space may house most or all employees currently at the One Texas Center as both facilities are roughly the same size. Capital Delivery Services, which oversees city infrastructure projects, would likely be the first department to occupy the office building as the lease for its current Southeast Austin space expires in September.
Move-in at University Park is anticipated later this year following some renovations and furnishing, including the installation of the Greater Austin Area Telecommunications Network, Moore said.
Emptying out the city's offices at the One Texas Center could unlock that site in the South Central Waterfront for redevelopment. City officials had previously discussed the potential of building new affordable housing on that 4.61-acre site off South First Street and East Riverside Drive, although Moore said more review is needed before finalizing a new plan for that property.
"Multiple redevelopment options have been considered over the years but the prospect of being able to completely vacate OTC will require a fresh look at options to bring to council for review and consideration," she said.
One more thing
The site just off I-35 is not expected to be affected by the Texas Department of Transportation's highway widening and lowering project taking place over the next several years. I-35 crossings north and south of the property will be upgraded without affecting the University Park building, Moore said.
"The city is aware of the TxDOT construction. The city also contacted the TxDOT for confirmation that there are no plans to take the current or future property that is part of the University Park segment," she said.
