Cousins Properties has entered into an agreement to purchase Sail Tower, also known as 601 West 2nd Street, in Austin for a net price of $521.8 million. This office property spans over 804,000 square feet and is currently under contract for acquisition.
During a recent investor presentation, Cousins highlighted that the rents at Sail Tower are currently below market value and the purchase price is significantly lower than its replacement cost.
Sail Tower boasts an ideal location near Downtown Austin’s Second Street entertainment district with stunning views of Lady Bird Lake. It is conveniently situated just blocks away from Cousins’ existing portfolio of office spaces totaling 1.7 million square feet in Downtown Austin which are currently leased at a rate of 93%. The tower was developed in the year 2022 and all its office space has been fully leased to a Fortune-20 company until the year2038.
According to Colin Connolly from Cousins Properties,”Austin continues to experience strong demand growth due to its attractive talent pool and growing businesses.” He further added that this acquisition will not only enhance their already impressive lifestyle office portfolio but will also have an immediate positive impact on their earnings.
The tower was previously known as Block185 before being developed by Trammell Crow Co., one of America’s leading real estate developers.
Founded back in1958,Cousins primarily focuses on acquiring and owning assets located within Sun Belt markets such as Charlotte where they recently acquired Vantage South End for $328.5 million.Their stock prices closed at$30.99 per share on Monday December9th,a significant increase comparedto last year when it stoodat$22 .52per share showinga37 .6%growthoverthe pastyear.
