KBS has completed the sale of 515 Congress, a 26-story Class A office tower totaling 267,956 square feet at the corner of Congress Avenue and Sixth Street in downtown Austin, Texas. The property was acquired by a joint venture comprising Palmatum Ventures, AQUILA and Glendon Capital Management. JLL represented KBS in the transaction. The tower was held by KBS Real Estate Investment Trust III prior to the sale.
The office building is situated in the heart of downtown Austin, within walking distance of the Texas State Capitol as well as nearby dining, retail, hotel and cultural amenities. Its location at Congress Avenue and Sixth Street places the asset in one of the city's most active urban corridors, with direct access to surrounding commercial and civic destinations.
During its ownership of 515 Congress, KBS invested more than $15.5 million in capital and base-building improvements. Those upgrades included renovations to the building's lobby, enhancements to the tenant lounge and conference facilities, and modernization of the elevator systems. The investment program was aimed at refreshing common areas and tenant-focused spaces to maintain the tower's Class A positioning within the downtown office market.
JLL Capital Markets handled the sales assignment for KBS, with brokers Mike McDonald, Jonathan Napper, Ryan Stevens and Drew Fuller representing the seller in the disposition of 515 Congress. The involvement of a dedicated capital markets team underscores the institutional profile of the asset and the transaction.
The change in ownership at 515 Congress marks a new phase for the property following KBS Real Estate Investment Trust III's multi-year hold and improvement program. With a newly completed capital investment and a prime downtown Austin location, the tower now transitions into the hands of a new joint venture ownership group.
