Tishman Speyer has entered the Austin market by acquiring The Foundry, a two-building office property totaling 240,000 square feet in East Austin, Texas.
“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,” said Rob Speyer, Tishman Speyer President & CEO.
“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,” he added.
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“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,” said Ryan Botjer, Senior Managing Director.
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.
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 plans to introduce its popular ZO suite of lifestyle, convenience and amenity services to employees of companies at The Foundry.
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.
Cielo will act as property manager on Tishman Speyer’s behalf, while leasing responsibilities will be handled by CBRE.
