AUSTIN – (Realty News Report) – Kilroy Realty Corp. has agreed to acquire the Indeed Tower in downtown Austin for $580 million.
Indeed Tower, completed in May, is a 36-story office project totaling 730,000 SF.
“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
Situated on a full city block bounded by West Sixth, West Seventh, Colorado, and Lavaca, the site includes a 35,000 SF historic post office building and a private park.
The project, subject to a long-term ground lease. The building’s developer, Trammell Crow, leased the site from the University of Texas. Principal Real Estate Investors is a partner with Trammell Crow in the building.
The tower is currently 57% leased with 42% of the space leased through 2034 to Indeed.com, a subsidiary of the Japanese publicly traded company, Recruit Holdings. Indeed is an Internet job-search company.
Vinson & Elkins is Major Tenant
The Vinson & Elkins law firm (50,273 SF) and Heritage Title also are tenants in the new building, which is leased by CBRE.
The Indeed building features 30,000 SF floor plates, 10,000 SF of ground-floor restaurant space and 30,000 SF of outdoor deck space.
With a walk score of 99, the project is surrounded by abundant amenities, including 175 restaurants and retail stores, 8,000 hotel rooms, 7,000 residential units, 60 plus event venues and is walking distance to the popular 10-mile Lady Bird Lake. Downtown Austin is home to a growing number of technology companies, including, Facebook, Google and Box.
Eastdil Secured and Allen Matkins advised the California company on the Indeed Tower acquisition, which is expected to close this fall.
Trammell Crow is also constructing a 35-story downtown office tower for Google, a few blocks from the Indeed building.
June 18, 2021 Realty News Report Copyright 2021
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File: New Austin Skyscraper Sold
Photo: Courtesy Kilroy Realty
File: (2) New Austin Skyscraper Sold to Kilroy. CBRE, Eastdil. Indeed. Vinson & Elkins