Bastrop Economic Development Corporation opens call for offers for Downtown building

Colleen DeGuzman, Austin American-Statesman
·2 min read
The Bastrop Economic Development Corporation is looking for a buyer for its two-story, 9,000-square-foot building at 921 Main St. that is leased by the Art Institute of Austin.
The Bastrop Economic Development Corporation is looking for a buyer for its two-story, 9,000-square-foot building at 921 Main St. that is leased by the Art Institute of Austin.

A call for offers for the two-story building at 921 Main St. in Downtown Bastrop is open.

The Bastrop Economic Development Corporation is looking for a buyer of its building which currently houses the Art Institute of Austin under a 10-year lease. The BEDC spent $2.9 million to construct the 9,000-square-foot building on a vacant lot.

The call for offers will be open for 40 days, closing on Dec. 15, said Joseph Blanga, an associate of Marcus & Millichap, the BEDC’s real estate agent. Blanga spoke to the BEDC in a special meeting on Nov. 5., in which the corporation's board unanimously approved the plan to find a buyer for the building.

After the call for offers closes, Blanga said, Marcus & Millichap will have five days to sift through the applications and present their choices of qualified and valid offers to the BEDC.

Once an offer is accepted, the building will undergo an inspection and feasibility period, which takes about a month to complete.

The BEDC will pay between 5% and 6% of the sale commission and 0.75% of the title insurance policy, according to BEDC interim Director Genora Young. The recording fees will be split between the BEDC and the buyer.

The art institute moved into the building in December after having announced plans in August 2019 to shutter its Round Rock campus and relocate to Bastrop. Under the terms of its lease, the institute will pay $14,250 per month for the first five years and about $15,000 per month the second five years.

The BEDC constructed the building at 921 Main St. after that lot had remained vacant for more than 15 years following several fires that burned down previous buildings at that site. The last fire occurred in 2003.

The city of Bastrop purchased the vacant lot in 2009 as an effort to expand downtown parking. The lot was used for special events until the city closed it in 2016 due to structural problems with the adjoining walls. Unwilling to spend money on repairs, the City Council sold the lot to the BEDC for $4 in 2016.

After soliciting public input, and with the recommendation from the state’s Historical Commission, the BEDC decided to construct a building at the site and seek a tenant.

This article originally appeared on Austin American-Statesman: Commercial real estate: Bastrop EDC looks for Downtown building buyer