Austin, TX – Travis County has completed its purchase of a 15-story office tower and adjacent parking garage in downtown Austin, a building intended to serve as the government’s new county seat. Closing documents were signed today. The Commissioners Court unanimously voted in January to pursue the purchase of 700 Lavaca, to address the long-standing and well-documented space shortage needs of its downtown government campus.
700 Lavaca is well-positioned to become the new county seat. Strategically located at 7th and Lavaca, the building’s current vacant space is the largest contiguous block available in the Central Business District. It re-confirms the county’s intent to keep certain critical county services in the heart of downtown Austin near other seats of government. It is within walking distance of current county operations, and is co-located in a district occupied by city, state and federal government courts and offices. It is conveniently located along two public transit corridors served by Capital Metro bus routes, and provides easy access for the public to conduct business with the county and participate in its public meetings.
Travis County initially will be sharing space in the 315,000 square-foot office building. Approximately one third of the building is occupied by private and public sector tenants. Those leases and contracts in the adjacent parking garage will remain in place until leases expire, providing cash flow for the county to offset ongoing operational expenses. County Judge Samuel T. Biscoe called this an example of “just in time occupation of space,” adding, “This will allow the county to further accommodate growth needs in the downtown business and courts operations and will provide phased-in occupation of office space as needed over the next decade and beyond.”
The Commissioners Court last week approved a contract with Sentinal Lavaca Management Corporation to handle property management services, to ensure a seamless transition of ownership and handling of maintenance issues. County staff will next begin to execute renovation contracts for the building to accommodate public meeting spaces, the relocation of Commissioners Courtroom as well as general office space in anticipation of relocating county offices in early 2011.
Travis County took advantage of still record-low interest rates for long-term financing and its long-held and highest ranked Triple-A bond rating. The approximate $195 per square foot cost to purchase the office tower for county occupancy is significantly below buying land and current new construction costs in Travis County, especially in the downtown area.
The negotiated final purchase price for the 315,000 square foot building and 675-vehicle parking garage is $61,250,000 plus closing costs and fees. The seller is Travis Realty Corporation. UGL Equis Corporation, represented by Keith Zimmerman, was selected through a competitive process as the exclusive broker for Travis County’s downtown central campus.
Travis County is one of the largest public employers in Austin with over 4,700 employees working in the civil, criminal and juvenile justice systems including the county jails, transportation and mobility infrastructure, parks, public safety, EMS and health and human services and general government functions. It is one of the 5 largest urban counties in Texas, with an estimated population over 1-million. Many of the mandated services provided by county government systematically have been de-centralized to place services closer to residents being served. But other core mandated services remain centralized within the downtown Central Business District. County government structure is spelled out in the Texas Constitution, which makes counties functional agents of the state.
More information about the Travis County Central Campus study is available on the County website at: http://www.co.travis.tx.us/facilities/central_campus_study/default.asp
Media Contacts:
Travis County Judge Samuel T. Biscoe (512-854-9555)
County Commissioner, Pct 1, Ron Davis (512-854-9111)
County Commissioner, Pct 2, Sarah Eckhardt (512-854-9222)
County Commissioner, Pct 3, Karen L. Huber (512-854-9333)
County Commissioner, Pct 4, Margaret J. Gomez (512-854-9444)
