Kilroy Realty buying Indeed Tower in Austin for $580M

Trammell Crow completed work on city’s tallest building in May

National Weekend Edition /
Jun.June 20, 2021 02:00 PM
John Kilroy and the Indeed Tower (Getty, Page Southerland Page)

John Kilroy and the Indeed Tower (Getty, Page Southerland Page)

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 





    Related Articles

    arrow_forward_ios
    Steve Roth and renderings of 260 11th Avenue (Getty, Profile New York)
    Vornado lays out vision for Otis Elevator Building complex
    Vornado lays out vision for Otis Elevator Building complex
    Savills' Nick Farmakis with 655 and 767 Third Avenue (Loopnet, Getty, Savills)
    Third Avenue: The land of “leave-behind”
    Third Avenue: The land of “leave-behind”
    One Soho Square with Stellar Management’s Larry Gluck and Yotpo CEO Tomer Tagrin (LoopNet, Twitter, Gluck Family Foundation)
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    Cohen Brothers Realty’s Charles Cohen and 750 Lexington Avenue (Getty Images, Cohen Brothers Realty, Council on Tall Buildings and Urban Habitat)
    Cohen Brothers’ Midtown tower back in special servicing
    Cohen Brothers’ Midtown tower back in special servicing
    (Photo Illustration by The Real Deal with Getty Images and Americasroof at English Wikipedia, CC BY-SA 3.0 - via Wikimedia Commons)
    Chinese firms bailing on US commercial market
    Chinese firms bailing on US commercial market
    Office Market, Subway, work from home
    Nearly 50% of workers return to office post-Labor Day
    Nearly 50% of workers return to office post-Labor Day
    NYU president Andrew Hamilton and 3 Metrotech Center (NYU, JLL)
    NYU buys MetroTech Center office building for $122M
    NYU buys MetroTech Center office building for $122M
    SL Green's Marc Holliday and 245 Park Avenue (Getty Images, SL Green, Google Maps)
    SL Green takes over 245 Park Avenue
    SL Green takes over 245 Park Avenue
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...