Encino Trace

 

A 320,342 square foot office campus located in Austin, TX.

 
 
 

Deal Highlights

Status

Active

Building Area

320,342 SF

Location

Austin, Texas

Property Type

Class A Office

Expected Hold Period

3 years

 

Investment Summary

Encino Trace is a Class A, 2015-vintage office campus located in Austin’s supply-constrained Southwest Parkway corridor, acquired at an attractive basis of approximately $251 per square foot. The property generates durable cash flow anchored by high-credit tenancy, led by ARM, which occupies 52% of the net rentable area under a lease extending through 2033. The business plan includes targeted tenant improvements currently underway, with phased deliveries expected in the second half of 2026, partial certificates of occupancy secured for Building 2 lab space, and a refreshed marketing strategy focused on demising suites for 10,000–20,000 RSF users while preserving expansion optionality for ARM. Acquired on an all-cash basis, the investment offers meaningful exit flexibility, and the execution of a Simmons Bank term sheet enhances returns, underwriting to approximately an 18% unlevered IRR through post-closing financing, supported by hands-on local execution and vertically integrated construction oversight.

Property Location

5707 Southwest Parkway
Austin, TX 78735

 
 
 
 
 
 
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