Lakeside at Quarry Oaks Office Building Sold
Houston-based DML Capital purchased the 123,272-square-foot property after occupancy reached 98 percent.
Updated on Oct. 30, 2026 in Commercial
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A 123,272-square-foot office building in the Quarry area has been acquired by Houston-based private equity firm DML Capital. The purchase marks a transition for the Lakeside at Quarry Oaks property, which saw its occupancy surge from 36 percent to 98 percent over the last 16 months.
Why it matters
The sale highlights the shifting dynamics in the Austin office market, where active leasing strategies are transforming once-underutilized commercial assets. As tenants like HeartFlow and York Space Systems settle into the space, local workers will see continued activity near the Braker Lane and Seton Center Parkway intersection.
The Lakeside at Quarry Oaks building reached a 98 percent occupancy rate at the time of sale, up from 36 percent in June 2025. This 123,272-square-foot facility is now fully integrated into the market with major tenants including HeartFlow, York Space Systems, and UBEO.
The players
DML Capital
A private equity firm based in Houston that recently acquired the Lakeside at Quarry Oaks office building.
Brick Row Holdings
The previous owner of the office building that successfully increased its occupancy to 98 percent.
JLL Capital Markets
The firm that brokered the sale of the building and arranged the acquisition financing.
HeartFlow
A major tenant currently leasing space in the Lakeside at Quarry Oaks office building.
York Space Systems
A major technology tenant occupying space within the office building.
The details
Completed in 1998, the three-story office building was sold by Brick Row Holdings to DML Capital. JLL Capital Markets brokered the transaction and secured acquisition financing through a life insurance company. The property remains notable for its local amenities, including an underground parking garage and access to a one-mile waterfront trail.
Timeline
1998: The office building was originally completed.
June 2025: Brick Row Holdings acquired the property.
October 2026: DML Capital finalized the acquisition.
2030: The UT Dell Medical Center is scheduled to open.
The Texas Context
The rapid lease-up of this building contrasts with broader office trends, such as the 46.2 percent vacancy rate at downtown properties like Lavaca Plaza. This acquisition shows that while some local office towers struggle, well-located sub-market assets are seeing high demand.
Workers based in the Quarry micro-market can expect continued high activity levels at the property following this transition. The building remains a key site for firms like UBEO and HeartFlow as the broader Austin office sector continues to evolve.
The takeaway
Commercial real estate investors are currently prioritizing buildings with high occupancy rates over those struggling with post-boom vacancy. Watch the surrounding Quarry area for continued ripple effects as the UT Dell Medical Center project approaches its 2030 opening date.
Further reading
For more news on local property developments, visit the Commercial section.
Source note: This article includes information reported by Commercial Property Executive.
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