Tishman Speyer enters Texas market with $150M buy

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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.

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