Virtua Partners Completes $41M Refi, Recap of Austin Office Property
- Feb 21, 2020
Virtua Partners has completed a $41 million refinancing and recapitalization of Met Center 15, a 257,600-square-foot office and flex commercial building in Austin, Texas.
According to Yardi Matrix information, the Class B property went through the same process in 2016 and 2018, most recently with the help of a $32 million bridge loan held by Narrative Capital. Virtua purchased the asset in 2016 from Newmark Knight Frank for $28 million.
Located at 7301 Metro Center Drive, the one-story building was developed in 2001 on a 27-acre site. The property is fully occupied by two Fortune 500 companies. One of the tenants recently renewed its lease through the efforts of Virtua affiliate Clear Vista Management, thus facilitating the refinancing.
Met Center 15 is less than 10 miles southeast of downtown Austin and less than 10 miles west of Austin-Bergstrom International Airport. The property is also adjacent to a five-building, 404,800-square-foot industrial and office portfolio that traded in December for $100 million.
Following the refinancing, two classes of preferred equity will be retired, as Class 1 investors realized a 15 percent internal rate of return while Class 2 investors obtained a 30 percent internal rate of return. Virtua expects the process will also allow future distributions to common equity lenders.