Tishman Speyer has completed its acquisition of The Foundry, a two-building office development totaling 240,000 s/f in East Austin, the Texas capital’s premier mixed-use submarket.
The property is 96 percent leased as Tishman Speyer takes ownership of the newly-completed second building.
Earlier this year, Tishman Speyer closed on the Foundry I building, which had opened in 2019. At the time, it was announced that the follow-up acquisition of Foundry II would be executed once construction was completed. The sale prices was reported then at $150 million.
During the period between the initial acquisition agreement and the transaction closing announced today, Tishman Speyer worked closely with Cielo Property Group and CBRE to complete 128,195 square feet of new leasing at Foundry II, which is now 99 percent leased.
“This confluence of events that we have announced today is everything we could have hoped for when we reached our initial acquisition agreement with the developer, Cielo Property Group,” said Tishman Speyer Senior Managing Director Ryan Botjer. “We certainly recognized that Austin is one of the nation’s emerging technology centers, and we envisioned great potential for this property. We are pleased that everything came together so well.”
He continued, “We greatly appreciate the way that Cielo, CBRE and Cushman & Wakefield worked collaboratively with us through three processes – Foundry II’s construction completion, its lease-up and the acquisition transaction.”
CBRE represented Cielo and Tishman Speyer in its recent leasing activity. Cushman & Wakefield represented Cielo in the sale of The Foundry.
The acquisition marks Tishman Speyer’s entrance into the Austin market. The firm has indicated it will seek additional opportunities locally as part of its strategy to increase its investment presence in emerging technology-rich centers around the U.S. and overseas.
The Foundry buildings were designed by Sixth River Architects (Foundry I) and Michael Hsu (Foundry II) for Cielo in accordance with LEED Gold and WELL certification standards.
Tishman Speyer plans to introduce its ZO suite of lifestyle, convenience and amenity services to employees of companies at The Foundry.