AUSTIN – (Realty News Report) — Rastegar Industrial is developing a 530,000-square-foot industrial project near the new Tesla Gigafactory in east Austin.
The facility is scheduled for completion in the third quarter of 2022. Newmark has been retained to handle leasing for Rastegar Industrial.
Tesla is investing more than $1.1 billion in its Austin factory, a project expected to encompass roughly 5 million square feet and employ about 5,000 people to assemble the Cybertruck and other electric vehicles.
Last year, Tesla — led by Elon Musk — acquired 2,000 acres along Highway 130 for the car plant, which is progressing quickly. The riverfront parcel on the Colorado River was purchased from Martin Marietta, a North Carolina-based building materials company, for $97 million.
Rastegar Industrial, the industrial division of Rastegar Property Company, is developing the new project at 11708 McAngus Road, near State Highway 130, a key industrial corridor for the Austin area. The development sits on a 50-acre parcel located within an Opportunity Zone, just a few miles from Austin-Bergstrom International Airport.
Rastegar expects to secure a tenant partner to collaborate on site development and build out. The location is well positioned to meet growing e-commerce and distribution demand driven by the region’s strong population and employment growth, and it will benefit from extensive new development and redevelopment nearby.
In addition to Tesla’s Gigafactory, luxury fashion and beauty brand Chanel is completing a manufacturing facility a few miles away. Circuit of the Americas — home to the Formula 1 United States Grand Prix as well as concerts and large events — is planning significant redevelopment that includes a hotel, water park and other amenities.
“Austin is one of, if not the fastest growing metros in the United States. The world’s leading tech companies and manufacturers are all moving to the region, creating an urgent need for more industrial space,” said Ari Rastegar, founder and CEO of Rastegar Property Company. “State Highway 130 extends south toward San Antonio and provides an alternative to the frequently congested Interstate 35, making it attractive for distribution facilities. Between Tesla, Chanel, this property and numerous other projects, this is the most active corridor in the region.”
Investing in land within Opportunity Zones can offer investors a way to generate value while supporting development in economically underserved areas. The Austin acquisition is one of several Opportunity Zone investments made by Rastegar, including a recent purchase in Phoenix.
Feb. 16, 2021 Realty News Report. Copyright 2021.
File: Tesla Gigafactory Getting Neighbor
Rendering courtesy Rastegar
File: (2) Elon Musk. Tesla Gigafactory Getting Neighbor. Rastegar. Highway 130. Austin