The deal our team has been working on for months officially closed on 6/30/22. Closing documents have been signed, the ink has dried, and the loan has been funded. We’re thrilled about this acquisition of the Temple, Texas skyline. It was historically used as a financial building for Extraco Bank in the middle of downtown, but we have other plans in mind. Let’s take a look at why we were so interested in this property and what we intend to do with it in the future.
What you need to know?
There is huge business interest in Temple.
The property is currently Class B but in the perfect location for a Class A conversion.
We’ve partnered with the City of Temple and Economic Development Corporation to be part of their revitalizing project.
WHY DID WE WANT THIS PROPERTY?
The building is a striking 83,201 sq ft with 10 floors plus a basement too. It currently sits at 62% occupancy and has plenty of parking spread across 3 lots. The property is Class B but in the perfect location for a Class A conversion with some renovation. This asset had 3 key factors that made it a slam dunk deal for us to pursue.
Location
We were first highly impressed with the location of this building. It features quick access to Austin, San Antonio, DFW, and Houston, on top of the fact it is located in the coveted Temple Downtown area. Data shows at least 12,000 vehicles per day pass by. The prime location provides all the potential to move it from a Class B property to Class A. We are also excited to own an asset in the city’s beautiful skyline.
Business Interest
It’s no secret companies all across the nation are picking up and heading to Texas. This transition started with the major cities of DFW, San Antonio, Austin, and Houston but has quickly grown to include Temple too. Currently, there are over 30 major businesses providing employment. The city touts 10 company headquarters and 6 international business locations within its borders. These companies operate in the key industries of business support services, distribution and logistics, advanced manufacturing, and health and life science. The number of companies operating is increasing every year. During the buying process, this acquisition became even more lucrative when Facebook’s parent company Meta announced they were opening up an $800 million data center in none other than Temple. The city boasts a 14% job growth in the last 10 years. All these metrics point to Temple being a true business hub now and even more so in the future.
Revitalization
The City of Temple is committed to supporting the growing business interest by creating an infrastructure to increase the quality of life for all residents. There are more than 40 local parks, 18 miles of trails, and over 60 sports facilities. Temple touts a 20% lower cost of living than the national average and a 17.5-minute average commute. The population has continued to grow by close to 20% in the last decade, showing that Temple is a place that people want to be. There is also significant revitalization in the downtown area. We are thrilled to be part of making that desire come to fruition. We’ve partnered with the Temple Economic Development Corporation and the City of Temple to create a coalition of like-minded individuals all devoted to the same goal of creating a thriving Temple community through real estate development. Temple is primed and ready for future growth, and we are leading the way in that innovation through the transformation of commercial real estate and communities.
WHAT ARE OUR PLANS FOR THE FUTURE?
We looked at this building and saw a huge opportunity to alter it from the current office space model. We’re exploring multiple ways to remodel and revitalize it, with our top choice being office building to hospitality conversion. Downtown Temple has an infrastructure gap with hospitality or options in the area. As the city continues to grow into more and more of a business hub, lodging accommodations will become an ever-present need. We seek to fill that need with this building and support the city’s desire to revitalize downtown into a thriving metropolis.
We’re happy to add this asset to our portfolio and create yet another asymmetric return for our investors, and truly transform local communities. We look forward to serving our investors in the future by finding more opportunities that deliver asymmetric returns - just like we did with this building on the beautiful Temple Skyline.
If you are interested in partnering with us in the future, we’d love to connect with you. To learn more about Redeem Investments and how to have your own commercial real estate deals, email ashten@redeeminvestments.com with “Next Steps” in the subject line.
