Rastegar Acquires 50-Acre Austin Parcel for Industrial Park Development
Rastegar Industrial, the industrial arm of Rastegar Property Company, has acquired a 50-acre parcel within an Austin, Texas, opportunity zone that will be developed into a new industrial park, the firm announced Tuesday morning.
The roughly 530,000 net rentable square foot property is located a few miles from Tesla’s Gigafactory — Tesla Giga Texas — and the Austin-Bergstrom International Airport. The project is slated for completion by the third quarter of 2022. Eyzenberg & Company arranged a portion of the pre-development financing. Newmark (NMRK) will be leasing the property for Rastegar.
Details on the acquisition price could not immediately be gleaned.
“Austin is one of, if not the fastest growing metro in the United States,” said Ari Rastegar, founder and CEO of Rastegar Property Company. “The world’s greatest tech companies and manufacturers are all moving to the region, creating an imminent need for more industrial space.”
Rastegar anticipates having a tenant in place to collaborate on site development for the parcel located at 11708 McAngus Road, minutes away from State Highway 130. He said the property is well-positioned to meet demand for e-commerce needs, due to the Austin region’s strong demographic trends and a number of other developments in the surrounding area.
In addition to Tesla’s new Gigafactory, luxury fashion and beauty brand Chanel is completing a manufacturing facility a few miles away. Circuit of the Americas, home to the Formula 1 United States Grand Prix, as well as concerts and other events, is also planning massive redevelopment that featuring a hotel and water park.
“State Highway 130 stretches all the way down to San Antonio and provides an alternative route to heavily congested Interstate 35, making it appealing to industrial facilities for distribution,” Rastegar said. “Between Tesla, Chanel, this property and the many other developments, it is the most active corridor in the entire region.”
The Austin acquisition is one of several successful opportunity zone purchases Rastegar has executed, including a multifamily high-rise lot in Downtown Phoenix in June 2019. The opportunity zones program, which founded as part of the federal tax overhaul enacted by Congress in December 2017, is designed to spark development in economically underserved areas in exchange for a break on capital gains tax.
Austin-based Rastegar has had an active start to 2021 that included launching a new $200 million real estate investment trust (REIT) focused around vintage multifamily properties across the Sun Belt region.