case study

Mixed-Use Purchase: Seaholm Power Plant

Seaholm District view from Ladybird Lake area

​​​​City/State​: Austin, TX​

The Seaholm Power Plant, originally built in the 1950’s, closed in 1989 and sat vacant for ove​​r 25 years until it was redeveloped in 2015. Clarion Partners saw great potential and untapped value in this unique asset and purchased the Class A, three-building, mixed-use development of over 208,000 square feet on behalf of a separate account client.

During the acquisition process, the Clarion team considered the property’s mix of uses, LEED Gold certification, and role as a public gathering space among positive factors within the overall investment analysis. Clarion’s internal analysis also highlighted the asset’s walkability and alternative transportation access, calling it a “walker’s and biker’s paradise” with a Walk Score of 92 and a Bike Score of 97. A Metro Rail stop, bus transit, car sharing services, a 10-mile hike-and-bike trail, and a five-mile cross-city route that connects with the Lance Armstrong Bikeway are all easily accessible from the property.

The redevelopment preserved and repurposed many historical elements, renovating the power plant into four stories of mixed-use creative office and retail space. It also converted the plant’s original water intake systems into a 325,000-gallon rainwater harvesting system for landscape irrigation. The modernized building retains t​he​ Art Deco architecture and classic appearance of the original structure. Tenants include Trader Joe’s, Under Armour’s Connected Fitness digital team, and True Food Kitchen.

As the heart of the Seaholm EcoDistrict, one of ten projects in North America participating in the EcoDistrict 1 Pilot Program, the project has been applauded by National Geographic​ for furthering Austin’s status as a pioneer of the green building movement. In addition, the property is a Texas Historic Landmark, is listed on the National Register of Historic Places, and has been named a global finalist for the Urban Land Institute’s Global Awards for Excellence.​​

Seaholm District view of office building






Definitions

Footnotes

Disclosures

The investments describ​ed herein were selected based on non-performance-based criteria and are not necessarily representative of any particular Clarion Partners fund or portfolio. It should not be assumed that any of these properties are or will prove to be profitable.

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This material does not constitute investment advice, nor does it constitute an offer in any product or strategy offered by Clarion Partners LLC or Clarion Partners Europe, and should not be viewed as a current or past recommendation to buy or sell any securities. Any specific investment referenced may or may not be held in a Clarion Partners client account. It should not be assumed that any investment, in any property or other asset, was or will be profitable. Investment in real estate involves significant risk. Investors should consider their investment objectives, and it is strongly suggested that the reader seek his or her own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory risks and evaluate their own risk tolerance before investing.

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