501 Studios began as a film, music and entertainment oriented community of four repurposed warehouse buildings housing over 100 companies in 60,000 square feet of space. The project enjoys a spectacular location on the east side of Austin’s downtown, fifteen minutes from the airport, directly on Interstate 35 and embedded in an extremely walkable neighborhood. When Pegalo acquired the first property in 1976, the area was considered to be industrial, undesirable and red lined by most of the banks in town. Over the next forty years, as Austin enjoyed remarkable growth, this close-in development transformed into the gateway to one of Austin’s most valuable and desirable infill mixed use areas. Pegalo Properties’ 501 Studios project perfected a contrarian operating formula thirty years before WeWork. The project offers short term leases, minimal tenant improvement allowances, supplies receptionist and communications services to all its tenants and consistently enjoys occupancy rates 15 percentage points above the market.