Kilroy Realty pumped the brakes on an office tower development in North Austin last fall, and it’s spent millions of dollars more on the halted project than was previously known.
The Los Angeles-based firm has invested more than $66 million on Stadium Tower at 10615 Burnet Road, according to Kilory’s second quarter earnings report, the Austin Business Journal reported.
At the end of September, the firm had spent $54.8 million on the project, roughly a month before it halted construction due to concerns about the overall economy and a struggling office sector.
The 2.9-acre development site is next to Q2 Stadium, where the city’s professional soccer team Austin FC plays. Kilroy bought the property for $40 million in March 2022. Since sitework had already begun upon purchasing the land, the development timeline was considerably shorter than a typical high-rise development. Now, there’s an unsightly hole in the ground, and it’s unclear when construction will resume.
Stadium Tower is expected to span 493,000 square feet, with terraces on every floor and ground-level retail space, according to Kilroy’s website. The company has spent about $1.2 billion on developments in the pipeline, according to an Aug. 1 earnings call, the outlet reported.
Kilroy also owns the 36-story, 730,000-square-foot Indeed Tower at 200 West Sixth Street, which it paid $580 million for in 2021. The downtown skyscraper is one of the highest in Austin’s skyline.
The firm’s CEO, John Kilroy Jr., plans to step down from his role by the end of the year.
—Quinn Donoghue
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