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ATX 130. Image courtesy of Jackson-Shaw
Jackson-Shaw is planning to answer the ongoing call for premier industrial accommodations in Austin, Texas, with the development of ATX 130, a business park that will offer approximately 602,400 square feet of office, warehouse and distribution space. The project’s estimated development cost is $50 million, according to the Texas Department of Licensing and Regulation.
Greystar, Whitman Peterson and Marketplace Real Estate Group are the project’s equity partners, while Comerica and Veritex provided construction financing. The development team also includes Burton as general contractor and Westwood as the appointed civil engineering firm. Groundbreaking is scheduled for March, with completion expected in early 2024.
READ ALSO: What’s Next for Industrial Development
ATX 130 will occupy a site spanning more than 67 acres in Austin’s Southeast submarket. Carrying the address of 6807 Elroy Road, the park will sit just off Highway 130 and roughly 5 miles from Austin-Bergstrom International Airport and Tesla’s 2,500-acre Gigafactory.
Jackson-Shaw is not hanging its hopes of success solely on ATX 130’s coveted location; the company has tapped architecture firm Method to design a flexible park that will allow it to cater to a wide range of potential tenants. The park’s four buildings will range from roughly 80,400 to 202,300 square feet and will be divisible to accommodate tenants requiring as little as 16,000 square feet or as much as 395,000 square feet.
Early buzz
Aquila Commercial’s Leigh Ellis and Blake Patterson are spearheading the leasing of ATX 130 on Jackson-Shaw’s behalf, and the team is welcoming robust interest in the property. Construction has yet to commence on the park and already, the project has attracted a commitment from Ferguson Enterprises. The plumbing supplies distributor preleased the 207,200-square-foot Building 3 in its entirety.
While industrial development in Austin is at an all-time high—new supply increased more than 97 percent year-over-year in the fourth quarter of 2022, according to a Newmark report—the future continues to bode well for the metro. “The market boomed from e-commerce activity following the pandemic, which propelled Austin as a distribution center,” the report states. “Austin has also been at the forefront as a tech manufacturing location, given the market’s reputation as a tech hub with a relative lower cost of living.”
ATX 130 is sprouting up in the right place at the right time. As noted in the Newmark report, with nearby Tesla’s ongoing expansion and Samsung’s growing presence, more companies that work with the manufacturers are entering the Austin market with industrial needs.
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