Cedar Park, Texas

Medical office buildings clustered near the St. David's hospital campus lease primarily to physician groups and outpatient service providers, and rent rolls here tend to carry longer terms with tenant-specific buildout allowances than general office product elsewhere in the metro. A replacement property buyer should confirm whether existing tenant improvement allowances have been fully amortized into the lease rate, since an unamortized allowance can affect the real economic yield the buyer is underwriting. Several of these buildings were developed in phases tied to hospital expansion milestones, so a buyer should also confirm whether any planned future phase carries a right of first refusal that could affect the parcel's standalone marketability, since a future phase's right of first refusal can complicate a straightforward resale down the road.

The Bell District development is introducing a mixed-use format to Cedar Park that has not existed in this submarket previously, combining ground-floor retail with office and residential components under a shared master declaration. Identifying a Bell District parcel as replacement property means reviewing the master declaration's cost-sharing formula and any use restrictions tied to the district's design guidelines before relying on projected retail rents. Because the district is still under construction in phases, a buyer should also confirm the build-out schedule for adjacent parcels, since occupancy and foot traffic in an early phase can differ substantially from what the finished district is expected to support.

Power-center and grocery-anchored retail along the 183A corridor generally trades on stabilized rent rolls with national or regional anchors, making it a common landing spot for exchangers using the three-property rule to name a handful of specific candidates. A due-diligence file for Cedar Park replacement property typically includes:

• Tenant improvement allowance amortization schedule for medical office
• Master declaration and cost-sharing formula for mixed-use parcels
• Anchor lease and co-tenancy clauses for corridor retail
• Phase I environmental site assessment
• Tenant estoppel certificates
• Subordination, non-disturbance, and attornment agreements

Completing this file before the 45-day identification deadline avoids delay later when a lender requests the same documents during the 180-day closing period.

Because much of Cedar Park's retail delivery is still catching up to rooftop growth, lenders underwriting acquisitions here sometimes ask for market-absorption data alongside the standard rent roll, particularly for newer centers that have not yet reached stabilized occupancy. Starting lender preflight conversations before the identification deadline, rather than after, gives the exchange more time to resolve any conditions tied to lease-up risk. A lender may also ask for a comparison against nearby 183A corridor centers in Leander and Round Rock to gauge whether a specific Cedar Park property's lease-up pace is keeping stride with the broader corridor or falling behind it.

The qualified intermediary holds the exchange proceeds and directs them to the replacement closing, keeping the investor from taking actual or constructive receipt of the funds at any point in the transaction. Assembling exchange documentation, the identification letter, the assignment of purchase agreement, and the closing statement, in the sequence the QI requires reduces the odds of a timing conflict between the identification deadline and the closing date. Investors trading a smaller relinquished asset into a larger Cedar Park replacement property, or vice versa, should also confirm with the QI how any resulting cash difference will be handled at closing, since that difference is a common source of unplanned boot. This content describes process and coordination only; investors should confirm tax treatment with their own advisor.