Karlin Proposes Revamp at Former 3M Campus in Austin

A long-dormant office campus in Northwest Austin is emerging as the center of a high-stakes tech leasing mystery — and the latest clues point to AI and energy operators.

New filings tied to the redevelopment of Highpoint 2222, the former 3M campus at 6801 River Place Boulevard, near the intersection of RM 2222 and RM 620, suggest Silicon Valley-based SB Energy may be involved in a massive revamp of the 1.1 million-square-foot property. The connection comes via a recent fiscal surety filing linked to an SB Energy affiliate, adding weight to speculation about the identity of a previously unnamed tenant tied to a $610 million project at the site.

The Austin Business Journal first reported the link.

The campus, owned by Los Angeles-based Karlin Real Estate, has been the subject of intense industry chatter since late last year, when state filings with the Texas Department of Licensing and Regulation revealed plans for extensive interior buildouts and infrastructure upgrades to accommodate a 234,000-square-foot user, codenamed “Cosmos.” At the same time, a separate site plan application outlined sweeping electrical improvements that might indicate a data center, according to the outlet.

SB Energy’s involvement could help decode the project. The SoftBank-backed firm is a major player in large-scale energy infrastructure and recently partnered with OpenAI, Oracle and others on a Stargate AI venture. That initiative includes a planned $18 billion data center campus elsewhere in Central Texas, according to the publication.

At Highpoint, the proposed work includes upgrades to substations, private electrical systems and utility connections running across the campus, all pointing to a tenant with outsized power needs, the outlet reported. The improvements would complement an existing on-site utility plant, potentially transforming the aging office park into a high-capacity digital infrastructure hub.

Another potential player has also surfaced. Multiple sources have indicated that semiconductor firm Arm Holdings is scouting space at the campus, raising the possibility of a hybrid tech project with multiple tenants. Arm already has a significant presence in Austin and is expanding nearby, though it has declined to comment on the Highpoint site.

Karlin acquired the 107-acre campus out of foreclosure in 2021 and has been repositioning it for life sciences and office users. Plans include a major amenity overhaul, featuring a 58,000-square-foot hub and a 75,000-square-foot atrium, alongside extensive renovations to the 1980s-era buildings.

But the scale of the infrastructure work now underway suggests an expansion into more power-intensive uses. With construction timelines stretching into 2027 and key permits still under review, the full scope of the transformation remains unclear.— Eric Weilbacher