Austin, Texas-based Independence Title Co. is moving up in the world. The agency opened its doors in 2005 and has worked to become the largest independently owned and operated title company in Texas. The company added an exclamation point to this growth by officially purchasing the building that will serve as the company’s headquarters starting in 2013.
The decision to become owner/operator of the 45,000-square-foot office building in Northwest Austin comes at the same time the company is expanding into the Houston market, which was marked by the recent hiring of a title industry veteran in the Houston metro area.
From its start in 2005 with two offices and 18 employees, Independence Title today has 32 offices and more than 250 employees. Revenues grew from $12.5 million in 2005 to more than $33 million last year. Expanding to the Houston market is part of the company’s strategic plan for spurring additional growth.
“We’ve grown to a point where we know who we are and where we’re going to be for the long term, so it was time to find a permanent home for our main office and statewide headquarters,” said Jay Southworth, chief executive officer of Independence Title Co. “This opportunity is a great fit for that.”
The purchase price was undisclosed, but brokers on both sides say a good deal was struck.
“Independence Title Company is growing and has a good plan for utilizing the building. Further, the seller was able to reach its sales goal providing upside for both parties in the transaction,” said Matt Levin with Equitable Commercial Realty.
Locally, there has been a trend of tenants turning into owners, according to Levin.
“The market is ripe for more of these types of transactions,” said Victor Young, an investment advisory services representative with Aquila Commercial. “There’s an increased sense of optimism being felt by a number of businesses in terms of their economic futures, and owning real estate can be a stabilizing force for their bottom line.”
Levin said that’s exactly what happened in this case — that at least 10 viable contenders and five serious offers came in for the property, but Independence Title was selected for two reasons. First, the partnership that was assembled to buy the building was the highest bidder. The other reason: knowing there was a company that wanted to occupy space within the building gave the seller greater confidence in the buyer’s ability to close. For a property that had previously been under contract, but failed to close, that was meaningful.
Independence Title intends to move its current Arboretum-area headquarters into approximately half the building in 2013. Over time, Southworth hopes his firm continues to grow and ultimately needs the entire building.
“This represented a good long-term strategy for us in terms of our real estate needs,” Southworth said. “Hopefully 10 years from now we’ve grown to the point where we need it all. I’d like to think that could happen.”