Tishman Speyer Properties LP announced Aug. 26 the sale of The Foundry, a two-building office development in East Austin, to Beacon Capital Partners.
New York-based Tishman Speyer purchased The Foundry in two phases for $150 million. The acquisition of Foundry I was completed in January 2021, while the Foundry II acquisition was completed in July 2021. Both buildings were purchased from developer Cielo Property Group.
A purchase price was not disclosed, but, for tax purposes, Foundry I was most recently appraised at $54 million and Foundry II at $100 million, according to Travis Central Appraisal District. Properties often sell for more than the appraised value.
Mike McDonald and Jonathan Napper of Cushman & Wakefield represented the seller in the transaction. The buyer’s representatives were not disclosed.
The entire Foundry campus is 96% leased, according to the announcement.
That lease rate is outpacing the rest of the East and Southeast submarket, according to NAI Partners’ latest quarterly office report. In that submarket, total vacancy averaged 17.6% in the second quarter. Availability, which also takes into account space that is occupied but on the market, was even higher at 26.9%.
The submarket also had the second-highest average asking rent in Austin at $42.79 per square foot. That was higher than The Domain’s rate of $39.63 per square foot and trailed only the Central Business District, where the average asking rent was a whopping $59.36.
The Foundry was Tishman Speyer’s first acquisition in Austin. After that deal, Tishman Speyer became co-developer on a 58-floor mixed-use tower with Ryan Companies US Inc. at 321 W. Sixth St., which broke ground earlier this year. That tower will feature 369 residences, 140,000 square feet of offices and street-level retail.
“Tishman Speyer has been laser-focused on growing and diversifying our business,” Tishman Speyer Managing Director Nooshin Felsenthal stated. “In addition to launching new product lines and platforms, we have sought to expand into dynamic, technology-rich markets defined by strong population growth, innovative companies and exceptional academic institutions. Austin is a perfect example, and The Foundry served as the perfect springboard.”
Beacon Capital is a Boston-based real estate investment firm with $13 billion of investment assets under management and a portfolio that spans more than 29 million square feet in 14 markets, according to its website.
Here are some other deals that recently hit our radar:
Epicor Software Corp. leased 45,496 square feet of space at 807 Las Cimas Pkwy. CBRE’s Nate Stricklen and John Gump represented Epicor while Cushman & Wakefield’s Kevin Granger and Brian Liverman represented the landlord, Boston-based Rockpoint.
NAI Partners arranged the sale of 0.97 acres at 2081 S. Hwy. 183 in Leander. NAI Partners’ Aaron Gill represented the seller, MJ Sheridan, in the transaction. The buyer was represented by Gracie Matthews of Seeker Commercial.
MSD Partners, an investment firm started by Dell founder Michael Dell, provided a $124 million construction loan for Zilker Point, a 206,000-square-foot office building at 218 S. Lamar Blvd., for Generational Commercial Properties and Fairway Real Estate. A team from Newmark — comprised of Dustin Stolly, Jordan Roeschlaub, Nick Scribani, Chris Kramer, Chase Tagen and Dan Morin — represented the developers.
A Goldman Sachs Asset Management Real Estate entity purchased Barton Creek Villas, 2716 Barton Creek Blvd., from The Connor Group. Newmark Vice Chairman Patton Jones and Managing Director Andrew Dickson represented the seller in the transaction.
DHA Capital leased 2,285 square feet of office space at One Westlake Plaza, located at 1705 S. Capital of Texas Hwy. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord. Tenant representatives were not disclosed.
The Texas Center for Educator Excellence leased 4,122 square feet of office space at One Westlake Plaza. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord. Tenant representatives were not disclosed.
Law firm Lorenz & Lorenz leased 3,019 square feet of office space at One Westlake Plaza. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord. Tenant representatives were not disclosed.
Bat Bridge leased 5,380 square feet of office space at Oakpointe Office Building, located at 911 Jollyville Road. Thomas Matheny of Aquila Commercial represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
James Roberson leased 1,677 square feet of office space at Oakpointe Office Building. Irulian Dabbs of Don Quick & Associates represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Girling Health Care leased 6,924 square feet of office space at Northpoint I, located at 6836 Austin Center Blvd. Dan Brown of Swearingen Realty Group represented the tenant, and David Stojanik and Graham Trull of The Kucera Companies represented the landlord.
Iodine Software expanded into 5,419 square feet of office space at Northpoint II, located at 6850 Austin Center Blvd. Nathan Smith of Austin Tenant Advisors represented the tenant, and David Stojanik and Graham Trull of The Kucera Companies represented the landlord.
Keller Williams leased 7,134 square feet of office space at Stonebridge I, located at 9606 N. MoPac Expy. Jeffrey Slanker of Keller Williams represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
First National Bank of Bastrop leased 2,626 square feet of office space at Stonebridge II, located at 9600 N. MoPac Expy. Gracie Matthews of Seeker Commercial represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Semi-Stow leased 3,492 square feet of office space at Lakeshore Tower, located at 210 Barton Springs Drive. Jonathan Durham of Stream Realty represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Momentum Capital Funding leased 806 square feet of office space at Northland Office Building, located at 3307 Northland Dr. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord. Tenant representatives were not disclosed.
Law firm Riggs & Ray leased 1,561 square feet of office space at Northland Office Building. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord. Tenant representatives were not disclosed.
EJ Health leased 1,593 square feet of office space at Northland Office Building. Andres Contreras of Cushman & Wakefield represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Accounting firm RBSM leased 643 square feet of office space at Balcones North, located at 8920 Business Park Dr. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord. Tenant representatives were not disclosed.
Kizen leased 2,948 square feet at Balcones North. Holmes Onwukaife and Ford Alexander of Cushman & Wakefield represented the tenant. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Engineering and surveying firm McKim & Creed leased 2,628 square feet of office space at Balcones North. Ted Rohan of Avison Young represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Max Homes Inspection Group leased 2,885 square feet of office space at 9130 Jollyville Road. Steve Gillespie of Texas Office Advisors represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Apex Senior Management leased 1,489 square feet of office space at Greystone I, located at 3415 Greystone Drive. Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord. Tenant representatives were not disclosed.
Austin Design leased 1,997 square feet of office space at Great Hills Corporate Center I, located at 9020 N. Capital of Texas Hwy. Jason Steinberg of ECR represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
Dr. Bristol leased 1,633 square feet of office space at Park Forest, located at 4201 W. Parmer Lane. Cam Longmire of CARR represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
SEC Planning leased 4,111 square feet of office space at Park Forest, located at 4201 W. Parmer Lane. David Dawkins of ECR represented the tenant, and Jeff Henley and Jeff Henley Jr. of The Kucera Companies represented the landlord.
ASAP Veterinary Care leased 3,319 square feet at Parmer Lane Plaza, 12400 N. I-35. Todd Stanley of Practice Real Estate Group represented the tenant and Michael Noteboom of Resolut RE represented the landlord.
Hookah Lounge leased 2,355 square feet at Shops at Wells Branch, 13717 Burnet Road. Angela Lopez of All City Real Estate represented the tenant, and Michael Noteboom and Joey Mendez of Resolut RE represented the landlord.
Maudie’s Café has renewed its lease at The Exchange at 10205 N. Lamar Blvd. Joey Mendez of Resolut RE represented the landlord. Tenant representatives were not disclosed.
Hutto Brows and Spa leased 1,000 square feet at Hutto Plaza, 525 Chris Kelley Blvd. in Hutto. Davis Paone, Michael Noteboom and Austin Aguilar of Resolut RE represented the landlord. Tenant representatives were not disclosed.
Texas Southwest Floors Inc. leased 15,147 square feet of industrial space 1000 New Meister Lane in Pflugerville. NAI Partners’ Troy Martin represented the tenant in the transaction. Sam Owen at Stream Realty Partners represented the landlord, IDI Logistics.
Uptown Cheapskate leased 6,000 square feet of retail space at 11066 Pecan Park Blvd. in Cedar Park. NAI Partners’ Kevin Murphy represented the tenant in the transaction. Michael Noteboom and Joey Mendez with Resolut RE represented the landlord, Washington Prime.
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