Tishman Speyer has completed the acquisition of The Foundry, a 240,000-square-meter office complex of two buildings in East Austin, the main mixed-use submarket for the capital of Texas.
96% of the property is leased as Tishman Speyer takes over the newly built second building.
Earlier this year, Tishman Speyer closed the Foundry I building, which opened in 2019. At the time, it was announced that a subsequent Foundry II acquisition would take place after construction was completed. The selling price was then $ 150 million.
Between the initial acquisition agreement and the closing of the deal announced today, Tishman Speyer worked closely with the Cielo Property Group and CBRE to complete the new 128,195 square foot Foundry II lease that is now 99 percent leased.
“This confluence of events that we announced today is all we could have hoped for when we reached the initial acquisition agreement with the developer, Cielo Property Group,” said Ryan Botger, senior managing director of Tishman Speyer. “We definitely recognized that Austin is one of the nation’s emerging technology hubs and foresaw great potential for this property. We are glad that everything worked out so well. ”
He continued, “We appreciate the way Cielo, CBRE and Cushman & Wakefield have worked with us in three processes: Foundry II completion, lease and acquisition.”
CBRE has represented Cielo and Tishman Speyer in their recent leasing activities. Cushman & Wakefield represented Cielo at the sale of The Foundry.
The acquisition marks Tishman Speyer’s entry into the Austin market. The firm said it will seek additional opportunities locally as part of its strategy to increase its investment presence in new technology centers in the US and abroad.
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 present its ZO package of lifestyle, convenience and convenience services to company employees at The Foundry.
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