AUSTIN – (Realty News Report) – Kilroy Realty Corp. has agreed to acquire Indeed Tower in downtown Austin for $580 million.
Completed in May, Indeed Tower is a 36-story office building encompassing approximately 730,000 square feet.
“I can’t overstate how well Indeed Tower fits with our strategic and property objectives. It is arguably the best building in Austin, is in one of the best locations, provides us with scale that will support future growth, is anchored by an investment-grade technology tenant and provides a value-add opportunity through lease-up in an office market that is strengthening,” said John Kilroy, chairman and chief executive officer of the Los Angeles–based company.
Trammell Crow Development
Located on a full city block bounded by West Sixth, West Seventh, Colorado and Lavaca streets, the site includes a 35,000-square-foot historic post office building and a private park.
The project sits on land subject to a long-term ground lease. Trammell Crow developed the building on property leased from the University of Texas, with Principal Real Estate Investors partnering with Trammell Crow on the development.
The tower is currently 57% leased. Indeed.com, a subsidiary of Japan’s publicly traded Recruit Holdings and an internet job-search company, occupies roughly 42% of the building’s space through 2034.
Vinson & Elkins Is a Major Tenant
The Vinson & Elkins law firm (50,273 square feet) and Heritage Title are also tenants in the new building. CBRE is handling leasing for the property.
Indeed Tower features floor plates of approximately 30,000 square feet, about 10,000 square feet of ground-floor restaurant space and roughly 30,000 square feet of outdoor deck space.
With a Walk Score of 99, the development is surrounded by abundant amenities, including more than 175 restaurants and retail stores, about 8,000 hotel rooms, some 7,000 residential units and more than 60 event venues. It’s also within walking distance of the popular 10-mile Lady Bird Lake trail. Downtown Austin continues to attract technology companies and now hosts operations from firms such as Facebook, Google and Box.
Eastdil Secured and Allen Matkins advised Kilroy Realty on the Indeed Tower acquisition, which is expected to close this fall.
Trammell Crow is also building a separate 35-story downtown office tower for Google a few blocks from the Indeed building.
June 18, 2021 Realty News Report. Copyright 2021.
For more about Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available in print and ebook editions.
File: New Austin Skyscraper Sold
Photo: Courtesy Kilroy Realty
File: (2) New Austin Skyscraper Sold to Kilroy. CBRE, Eastdil. Indeed. Vinson & Elkins