Market Overview

HFF Announces The Luzzatto Company's Acquisition of Austin Oaks in Austin, Texas


HFF announces The Luzzatto Company's acquisition of Austin Oaks, a
12-building office park totaling 445,322 square feet in Central Austin.

The HFF team marketed the offering on behalf of the seller, Spire Realty
Group LP. An affiliate of The Luzzatto Company, Inc. (TLC), a Los
Angeles-based investment firm, purchased the asset and was assisted by
HFF in securing the 10-year acquisition loan through a life company

Situated on 31.4 acres along MoPac (Loop 1), Austin Oaks is Austin's
largest infill office park and is currently home to 140 tenants
representing a diverse mix of industries, including financial services,
healthcare, legal and technology. TLC has acquired the property as a
long-term investment with plans to reposition it into a more creative,
tech-friendly campus akin to modern creative office campuses in the Los
Angeles area that have attracted the entertainment, media and tech
industries throughout the past several years.

Originally constructed throughout the 1970's and 80's, the redevelopment
will be designed by Austin-based Michael Hsu Office of Architecture and
will place an emphasis on green initiatives and aesthetic elements such
as art and landscaping. TLC also plans to add café and fitness amenities
to the campus. While the property is currently entitled to add more than
800,000 square feet of office, multi-housing and retail space, TLC
intends to focus on the value that exists in the current improvements
and on its efforts repositioning the existing buildings into what it
believes will be a world-class creative office campus. Most
redevelopment will be deferred to much longer-term plans for the
property. TLC hopes that its approach to Austin Oaks will be well
received by the City Council, adjacent property owners and current
tenants. TLC's immediate plans also include working in conjunction with
the Austin office of Peloton Commercial Real Estate to lease and
co-manage the property. Together, they look forward to offering tenants
medium- and long-term leasing opportunities.

"I am excited to return to Austin, where I spent my law school years,
and give something back to the community in the form of a wonderful and
creative home for the dynamic business community that has evolved since
my time at the University of Texas," Luzzatto said. "I see a lot of
similarities between the vibe in Austin and in Santa Monica/Silicon
Beach, and we want to provide the same kind of creative environment at
Austin Oaks that we have created in some of our properties in Silicon

"We are thrilled to work on what may be the single most significant
repositioning opportunity in Austin, if not all of Texas," Hsu said.
"The existing buildings create a perfect backdrop to transform this
development into a modern reflection of Austin, which will blend with
the city's physical and business landscape."

Holliday GP Corp. ("HFF") is a Texas licensed real estate broker.

About Spire Realty Group LP

Spire Realty Group is a privately held real estate investment and
management company based in Dallas. The company, which has extensive
redevelopment experience, currently owns and manages a diverse
portfolio, including commercial office buildings, retail centers,
multifamily projects, parking facilities and land development sites.

About The Luzzatto Company, Inc.

The Luzzatto Company, Inc. and its affiliates ("TLC") invest in real
estate and real estate related debt, with a national portfolio that
includes retail, office, multi-family, industrial and film and
television studio properties. TLC has a long history of success in
creative conversions and development with a focus on distressed,
underdeveloped, poorly designed, inefficient, vacant or otherwise
impaired properties. TLC has developed and managed space for tenants
like Red Bull, Yahoo!, NPR, The Honest Company, FedEx, Quixote Studios,
CAA and other industry leaders. Today, TLC remains one of the premier
creative office operators in the nation.

TLC ensures that all of its investments perform well despite market
fluctuations through its property management, asset management and
brokerage services as well as its in-house legal expertise.

In addition to its own portfolio of assets, TLC manages the real estate
assets of Welk Real Estate, Inc. (the real estate subsidiary of The Welk
Group, Inc., the Lawrence Welk family holding company), and a number of
Luzzatto family-affiliated real estate ventures.

About Michael Hsu Office of Architecture

Michael Hsu Office of Architecture was formed in 2005 with the goal of
producing locally engaged, design driven architecture and interiors in
Austin. MHOA endeavors to create livable, neighborhood-oriented urban
spaces. The firm's work includes diverse projects ranging from mixed-use
developments to original commercial interiors and residences. MHOA
advocates a simple, edited design palette, using available materials and
techniques to create unexpected results. MHOA believes in the innate
beauty of unadorned natural materials, carefully chosen, composed and

About HFF

HFF and its affiliates operate out of 26 offices and are a leading
provider of commercial real estate and capital markets services to the
global commercial real estate industry. HFF, together with its
affiliates, offers clients a fully integrated capital markets platform,
including debt placement, investment advisory, equity placement, funds
marketing, M&A and corporate advisory, loan sales and loan servicing.
HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities
Limited are owned by HFF, Inc. (NYSE:HF). For more information, please
or follow HFF on Twitter @HFF.

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