Tishman Speyer has made its first move into the Texas marketing with the acquisition of a two-building office property totaling 240,000 s/f in East Austin for between $145 and $150 million, according to sources.
The transaction is being executed in two steps. Tishman Speyer’s acquisition of Foundry I, which was opened in 2019, was completed on February 3, 2021. The acquisition of Foundry II will close when the building is delivered in May 2021.
Tishman Speyer President & CEO Rob Speyer commented, “This is our first investment in Austin, but we expect it won’t be our last. Austin is taking its place as one of America’s most desirable locations, especially for tech talent. And within the market, East Austin is the fastest growing and most dynamic mixed-use community. That’s exactly where we want to be the landlord of choice.”
He continued, “Tishman Speyer is focusing on markets where the best tech entrepreneurs are collaborating with leading academic institutions. Going forward, Austin will be in our portfolio alongside Boston, San Diego, the Bay Area and more.”
Senior Managing Director Ryan Botjer, who oversaw the acquisition, added, “The Foundry is the most exciting new property in the East Austin submarket, in a city where tech companies have been relocating their headquarters or adding facilities at an unprecedented rate. Foundry I was nearly leased up quickly after completion and Foundry II has been partially pre-leased. We are very excited about the potential for this investment, and the prospects for further growth in Austin.”
The Foundry buildings were designed by Sixth River Architects (Foundry I) and Michael Hsu (Foundry II) for Austin-based developer/investor Cielo Property Group in accordance with LEED Gold and WELL certification standards. The Foundry offers large floorplates, onsite amenities such as fitness centers in each building, bike storage, outdoor terraces integrated on every office floor, lush, ground-level outdoor paseo areas, and considerable underground parking. It is surrounded by some of the area’s most extraordinary restaurants, inspiring arts and cultural destinations, nightlife and hospitality offerings, and is strategically located near mass transit and highways.
Tishman Speyer plans to introduce its ZO suite of lifestyle, convenience and amenity services to employees of companies at The Foundry.
Cielo will act as property manager on Tishman Speyer’s behalf, while leasing responsibilities will be handled by CBRE.
Vice Chairman Mike McDonald and Managing Director Katy Jane Jenevein of Cushman & Wakefield represented the seller in the transaction.