AUSTIN, TX / LOS ANGELES, CA — Arc Capital Partners (“Arc”) announced today the successful exit of its investment in Chapman 71, an approximately 126,000-square-foot industrial outdoor storage portfolio in Southeast Austin, Texas, through the property’s sale to Sagard Real Estate.
Arc invested in Chapman 71 in February 2024 through a recapitalization led by its local Austin-based operating partner, PlaceMKR. Arc’s structured capital solution enabled PlaceMKR to complete its value-add business plan, focused on renewing and upgrading the tenant roster and enhancing long-term value across the asset as a premier industrial and outdoor storage destination in Southeast Austin.
“We are proud of our partnership with PlaceMKR and the successful recapitalization of Chapman 71. This exit validates our conviction in Southeast Austin’s industrial market.”
— Neville Rhone, Co-Founder and Managing Partner, Arc Capital Partners
Arc recapitalized the off-market portfolio, which was 100% leased at the time but carried below-market rents, creating significant mark-to-market upside. The investment reflects both Arc’s sourcing capabilities in high-growth Sunbelt markets and PlaceMKR’s strong hands-on operational execution.
“Chapman 71 is a strong example of our strategy in action: partnering with experienced local operators in supply-constrained markets to unlock value. We are proud of what this team delivered for our investors.”
— Quincy Allen, Co-Founder and Managing Partner, Arc Capital Partners
“Chapman 71 is a testament to what’s possible when local operational expertise meets the right capital partner. Arc’s conviction in the Southeast Austin thesis aligned perfectly with ours, and together we delivered a best-in-class industrial and outdoor storage asset that attracted institutional attention. We’re proud of the outcome and the tenants we’ve served along the way.”
— Christopher Cortese, Co-Founder and Managing Principal, PlaceMKR
PROPERTY DETAILS
Originally built in phases between 1970 and 1999 and renovated in 2023, spanning approximately 13 acres and including a significant outdoor storage component, Chapman 71 is situated along the Ben White/Burleson Road industrial corridor in Southeast Austin, offering direct connectivity via E. Ben White Boulevard and proximity to Austin-Bergstrom International Airport and IH-35. The property’s strategic location positions it at the heart of Austin’s industrial growth corridor, providing tenants with efficient access to regional logistics infrastructure and a dense, rapidly expanding labor market.
The portfolio is 100% leased to a diverse mix of industrial and commercial tenants, including Holt Truck Centers of Texas, Ace Contractor Supply, South Austin Speed Shop, Casa Moreno Restaurant, and Stainless Steals, Inc. The tenant roster represents a broad cross-section of the industrial and service-oriented businesses that anchor Southeast Austin’s economy.