Tishman Speyer Sells Austin Office Complex

1600 E 4th St. Image courtesy of Tishman Speyer.

Tishman Speyer has closed on the sale of The Foundry, a two-building, 240,000-square-foot mixed-use office development located at 310 Comal St. and 1600 E 4th St. in Austin, Texas.

Tishman Speyer, represented by Cushman & Wakefield, sold the property to Beacon Capital Partners for an undisclosed amount.

Cushman & Wakefield Vice Chairman Michael McDonald and Executive Managing Director Jonathan Napper represented Tishman Speyer in the transaction. Before the sale, the firm had worked alongside the property’s previous owner, Cielo Property Group and CBRE, leasing 96 percent of space within both buildings.

Tishman Speyer’s acquisition of the office complex in two phases in 2021 marked its entry into the Austin market. The transaction was subject to a $110.5 million loan, according to CommercialEdge data.

The two buildings of the LEED-certified campus, divided as Foundry I and Foundry II, were constructed in 2019 and 2021, respectively. Current tenants include Cloudflare, DPR Construction and the Integral Group, CommercialEdge data shows. The buildings’ construction was completed with sustainable materials. Amenities include a rooftop terrace, a bike room and 5,000 square feet of retail space. Situated at the intersection of Austin’s 4th and Comal streets, the campus is within 1 mile of downtown Austin, with quick access to many restaurants and cultural sites.

Austin’s office market acceleration

Austin currently ranks among the nation’s top markets for office construction starts, with 8.4 million square feet of space underway and 830,000 coming online as of the second quarter of 2022, following over $1 billion in sales, according to CommercialEdge data. Furthermore, two-fifths of the space is concentrated within Austin’s downtown district, the same data shows. The region continues to see an influx of companies to Austin and other Sun Belt cities, fueling a high demand for office space.

Acknowledging these trends, Tishman Speyer Managing Director Nooshin Felsenthal said in prepared remarks that in addition to launching new product lines and platforms, the company has sought to expand into dynamic, technology-rich markets defined by strong population growth, innovative companies and exceptional academic institutions.

Elsewhere in Austin, the firm is developing 321 West, a 58-story, 561,000 square-foot mixed-use tower in the city’s central business district, scheduled to open in 2024.