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Being a local, active manager, Black Creek was in tune with the market’s needs and was aware of the shifting demands of the Austin workforce, who were increasingly prioritizing work-life balance.
With this awareness, Black Creek recognized that in order for the space to appeal to new, high-quality tenants it would need to offer desirable amenities that would attract and retain top talent. Black Creek focused on adding amenities that would draw in the highly educated workforce of Austin, including a conference center, fitness facility, outdoor courtyard and BBQ pits all available for tenant use.
Within 24 months from the start of repositioning, Black Creek’s office team executed approximately 120,000 square feet of new and renewal leases at premium rents bringing occupancy to approximately 91 percent. After renovating the property, increasing rents to market price, and stabilizing occupancy, Black Creek determined it had maximized value and listed the asset for disposition, which resulted in a quick sale at a value accretive to net asset value, further delivering returns for investors.
While the primary focus at that time was to add value through leasing, Black Creek was aware that adding new, desirable amenities would lead to long-term value creation when the company determined it was time to dispose of the asset.