Big Changes Ahead: Iconic Sail-Shaped Office Building Sold for $521.8 Million in Downtown Austin

AUSTIN, Texas – Big Changes in the Downtown Skyline!

Hey there, Austin! Exciting news is brewing in our vibrant city as one of the most recognizable buildings is welcoming a new owner! Next up, the iconic sail-shaped office building will soon be part of Cousins Properties’ extensive portfolio, and they’re making quite the splash with an acquisition price hitting more than $521.8 million.

What’s the Sail All About?

This striking 35-story building, located at 601 W. Second St., boasts a whopping 804,000 square feet of space, which is currently fully leased to none other than Google. Developed just last year in 2022, this property not only adds a cocktail of modern architecture to our skyline but also reflects how tech giant Google is positioned in the heart of Downtown Austin.

A Major Deal for Austin

Now, if you think that’s impressive, consider this: the sale is expected to close this month, making it the largest office property sale in Austin for 2023! That’s a big deal, right? With office real estate still shaking off the post-pandemic dust, this transaction represents a notable shift and a vote of confidence in the area.

Still a Google Hub?

It’s worth mentioning that there has been a bit of a delay with Google moving its workforce back into the sail-shaped building. This pause has contributed to rising vacancies in our beloved Downtown area. But fear not! The new ownership might signal a refresh in energy as Cousins Properties takes the reins.

The Cousins Properties Connection

Cousins Properties isn’t new to Austin; in fact, they own 17 million square feet of space in the downtown area alone and are leasing out a substantial 93% of it. Now that’s some serious property prowess! Colin Connolly, the president and CEO of Cousins Properties, shared his excitement about this acquisition stating, “We are thrilled to add this iconic office property, with a strong investment-grade customer, to our Austin portfolio.”

More Than Just a Property

With top-tier tenants already calling them home—think Amazon, Expedia, Adobe, and Fidelity—Cousins Properties has made a name for itself as a leader in the local office space market. Their reach doesn’t stop downtown either; they are also the largest owner of office space at the Domain in North Austin, boasting 2.5 million square feet across an impressive 11 buildings.

What’s Next?

So, what can we expect next? As Cousins moves forward with their new acquisition, the hope is that they’ll breathe new life into the building and help shape the future of the Austin office landscape. With strong demand fundamentals and a bustling tech scene, Austin continues to attract top talent and grow companies, and this development adds fuel to that fire!

Wrap Up

As Austin evolves, it’s thrilling to see our skyline and commercial real estate panorama transforming right before our eyes. Stay tuned, everyone! There are plenty of exciting changes and opportunities on the horizon for our fantastic city!