AUSTIN – (Realty News Report) – Tishman Speyer, a prominent Manhattan-based developer, has entered the Austin market with the acquisition of The Foundry office complex in East Austin.
Tishman Speyer, known for owning Rockefeller Center in New York, has holdings across 28 major markets in the United States, Europe, Asia and Latin America.
“This is our first investment in Austin, but we expect it won’t be our last,” said Tishman Speyer President & CEO Rob Speyer. “Austin is taking its place as one of America’s most desirable locations, especially for tech talent. 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.”
Over the past year, Austin has attracted numerous tech companies relocating from California, including Oracle’s headquarters. Samsung has purchased land northeast of Austin for a planned $17 billion manufacturing facility, and Tesla is building a 4 million square-foot vehicle factory in East Austin. Tesla CEO Elon Musk recently moved his residence to Austin from California.
“Tishman Speyer is focusing on markets where leading tech entrepreneurs collaborate with top academic institutions,” Mr. Speyer added. “Going forward, Austin will be part of our portfolio alongside Boston, San Diego, the Bay Area and other key tech hubs.”
The Foundry is a two-building office campus totaling approximately 240,000 square feet in East Austin, near the intersection of Fourth and Comal streets. The project sits a block from the MetroRail stop at Plaza Saltillo and adjoins the Lance Armstrong Bikeway.
The Foundry buildings were developed by Austin-based Cielo Property Group, which recently completed the 29-story Third + Shoal office tower in downtown Austin, a building occupied by Facebook.
Foundry I was designed by Sixthriver Architects and Foundry II by Michael Hsu, an Austin-based architect selected for several recent Texas mixed-use and retail projects, including the food hall at the new Bank of America tower in downtown Houston.
The Foundry delivers large floor plates and a range of on-site amenities, including fitness centers, bike storage and outdoor terraces on every floor—features that appeal to technology and creative tenants seeking flexible workspace and commuter-friendly facilities.
Cielo will serve as property manager for Tishman Speyer, 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.
Tishman Speyer closed on the purchase of the Foundry I building on Wednesday. The acquisition of Foundry II is scheduled to close upon delivery of the building in May 2021.
“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,” said Ryan Botjer of Tishman Speyer. “Foundry I leased up quickly after completion, and Foundry II has already been partially pre-leased.”
Tishman Speyer has previous experience in Texas, having developed the 20-story Briar Lake Plaza office building in Houston years ago.
Feb. 4, 2021 Realty News Report Copyright 2021
Caption: The Foundry in Austin. Courtesy Tishman Speyer
File: Tishman Speyer Entering Austin
File: (2) Cielo. CBRE. Tishman Speyer Entering Austin with Foundry purchase. Michael Hsu. Cushman & Wakefield. Austin, Texas 2021. Office.