Tishman Speyer, one of the world's leading real estate developers and owners, today announced the acquisition of The Foundry, a two-building office property totaling 240,000 square feet in East Austin, the Texas capital's premier commercial submarket. The acquisition marks the firm's entrance into the Austin market, which has emerged as one of the nation's leading technology centers.
The transaction announced today 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 popular 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 this transaction announced today. .
About Tishman Speyer (www.tishmanspeyer.com)
Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in 28 key markets across the United States, Europe, Asia and Latin America. We develop, build and manage premier office, residential and retail spaces for industry-leading tenants, as well as state-of-the-art life science centers through our Breakthrough Properties venture. With global vision, on-the-ground expertise and a personalized approach, we are unparalleled in our ability to foster innovation, quickly adapt to global and local trends and proactively anticipate our customers' evolving needs. By focusing on health and wellness, enlightened placemaking and customer-focused initiatives such as our tenant amenities platform, ZO., and our flexible space and co-working brand, Studio, we tend not just to our physical buildings, but to the people who inhabit them on a daily basis. Since our inception in 1978, Tishman Speyer has acquired, developed, and operated 453 properties, totaling 210 million square feet, with a combined value of approximately $113 billion (U.S.). Our current portfolio includes such iconic assets as Rockefeller Center in New York City, The Springs in Shanghai, TaunusTurm in Frankfurt and the Mission Rock neighborhood currently being realized in San Francisco.
