AUSTIN, TX – September 15, 2016 – CIM Group and Seaholm Power LLC announced today that they have sold the Seaholm Power Plant mixed-use development located on the waterfront at the southwestern edge of downtown Austin, bounded by Cesar Chavez Street, West Avenue, 3rd Street, Seaholm Drive and the A&NW rail line. The centerpiece of the project is the repurposed and formerly long-dormant, 126,000-square-foot historic art deco power plant constructed in the 1950s.
The redeveloped Seaholm Power Plant is comprised of four floors of open, creative office space designed for its major tenant, athenahealth. Boiler Nine Bar + Grill, a 10,000-square-foot restaurant spanning all four levels, is also part of the redevelopment. Boiler Nine’s concept at Seaholm includes Deck Nine Observatory Bar, a roof top bar with expansive views of Austin and Lady Bird Lake, and The Boiler Room, a subterranean den located on the lowest level of the power plant near the original boiler room.
The five acres surrounding the power plant were transformed into a mixed-use urban oasis offering 1.5 acres of public open space and a plaza. A newly-constructed two-story, 68,000-square-foot low-rise contemporary glass and steel building includes 35,000 square feet of office space for MapMyFitness, a wholly-owned subsidiary of Under Armour®, and 33,000 square feet of ground floor retail space anchored by a Trader Joe’s grocery store.
The ground floor retail space below the 30-story, 280-unit Seaholm Residences featuring the new 7,000-square-foot True Food Kitchen was also included in the sale. The Seaholm Residences, the condominium units above True Food Kitchen that were fully-reserved within a week of offering and are completely sold, were not a part of this transaction.
Construction began on the Seaholm Power Plant project in April 2013, with athenahealth opening its doors in February 2015. The low-rise office and retail building were also completed in 2015.
Seaholm Power LLC consists of: a joint venture comprised of principals from Southwest Strategies Group, Centro Development, State Street Properties, La Corsha Hospitality, and Capital Project Management. The team was selected by the City of Austin to redevelop the site. CIM Group joined Seaholm Power LLC as co-developer and worked together with the city in a public-private partnership to accomplish all objectives.
“It is a wonderful feeling when the vision becomes a reality, and the reality is extraordinary,” John Rosato, Principal with Southwest Strategies Group and managing partner for Seaholm Power LLC. “We listened to the community and the market – and together, saved a historic icon. Today, I see nearly every aspect of life being lived on Seaholm’s grounds and it’s the most incredible feeling.”
CIM, an investor in communities throughout North America, has been an investor in Austin since 2007 when it identified Austin as a Qualified Community, possessing the attributes that fit CIM’s investment criteria. CIM’s Austin area investments include the Penn Field office campus at 3601 S. Congress, the District at SoCo apartment community, the Hartland Plaza office complex, The Independent condominium tower currently under construction and across the street from the Seaholm residences, and the creative office building located at 1645 E. 6th Street at Eastside Village.
“We are very pleased that the Seaholm redevelopment is meeting the expectation of being the fulcrum development that is transforming the Seaholm district in southwest Austin into a vibrant urban community,” said Avi Shemesh, Principal and Co-founder of CIM Group. “The City of Austin’s foresight and commitment to invest in this project provided the mechanism to repurpose this iconic property into a landmark office, residential, and retail destination.”
The City of Austin notes the sale signifies the materialization of a double bottom line for citizens: saving a historic structure while significant city contributions are reimbursed.
“The City of Austin congratulates CIM Group and Seaholm Power, LLC on the sale of the Seaholm development,” said Kevin Johns, Director of the City of Austin’s Economic Development Department. “The transaction concludes the obligations under the Master Development Agreement, including the repayment of 100% of eligible incentives the city provided to make the long-planned project a reality. In the end, we regard this as a very successful project in that it achieved the goal of preserving the historic power plant for future generations at little or no cost to the city, while bringing new energy, jobs and economic development to a once derelict industrial district.”
About CIM Group
CIM Group is a leading real estate and infrastructure investment firm that since 1994 has systematically and successfully invested in dynamic and densely populated communities throughout North America. CIM Group draws on its experienced team of real estate, investment and finance professionals to identify and pursue investment opportunities in five strategic categories: repositioning and development projects, well-positioned operating properties, value-add properties, debt, and infrastructure. Headquartered in Los Angeles, CIM maintains regional offices in New York, the San Francisco Bay Area, Washington D.C. Metro Area, and Dallas. For more information, please visit www.cimgroup.com
About Seaholm Power LLC
Seaholm Power LLC, a joint venture comprised of principals from Southwest Strategies Group, Centro Development, State Street Properties, La Corsha Hospitality, and Capital Project Management, was selected by the City of Austin to oversee the redevelopment of the Seaholm Power Plant site. Together with its partner, CIM Group, a leading real estate and infrastructure investment firm, Seaholm Power LLC worked in conjunction with the City of Austin to save the iconic power plant structure and create a mixed-use, multi-model hub that will provide new options for residents to eat, shop, work and play. For more information visit: www.seaholm.info.
For CIM Group
For Seaholm Power LLC
Mary Alice Kaspar