Kilroy Realty’s first buy in Austin is a big one.
The firm is in contract to pay $580 million for the newly completed Indeed Tower, according to the Austin Business Journal. The deal for the 730,000-square-foot tower would be the priciest office transaction in the city since the start of the pandemic.
Trammell Crow developed the 36-story building at 200 W. Sixth Street., which stands as Austin’s tallest and largest. Work was completed last month. The building occupies a full city block in the central business district and includes 10,000 square feet of ground-floor retail space.
Austin is drawing real estate investors, in part because of the city’s growing tech economy. Tishman Speyer made its first push into the city in February with a $150 million office purchase.
Kilroy said Indeed Tower is 57 percent leased, primarily to Indeed Inc., the job listing behemoth. The firm has the top 10 floors through 2034, according to the report.
Other tenants include the law firm Vinson & Elkins, Heritage Title, and Brown Advisory. The Teachers Retirement System of Texas signed a 100,000-square-foot lease at the tower in 2019, but backed out in February 2020.
The Indeed Tower deal is Kilroy’s second major transaction of the year. In March, it agreed to the $1 billion sale of a Dropbox-leased San Francisco office complex.[ABJ] — Dennis Lynch