While it's a sizable lease, it's not a net absorption deal. AMD will use the space for its Alchemy semiconductor unit, a startup it purchased earlier this year. AMD workers will relocate from the city's southeast submarket while Alchemy is coming from the north central submarket. Sunnyvale, CA-based AMD has about 3,500 workers in semiconductor manufacturing and chips design operations in Austin.
Jay Lamy and Chris Bachman, both of the Austin office for Dallas-based Staubach Co., were shopping for northwest space on behalf of AMD for several weeks. The deal closed just last week.
The CB Richard Ellis Austin team of Bart Matheney and David Putman represented the building owner, Prentiss/Copley Investment Group LP, based in Portland, OR.
The building was the Austin home of Computer Science Corp. until it moved to two buildings in the CBD. The six-story building's 187,385 sf has been empty since CSC left. Matheney tells GlobeSt.com that the building has been undergoing significant renovations during the vacant period. New granite flooring is being added to the lobby, corridors are being re-carpeted and bathrooms are being remodeled. Matheney says a number of prospects have shown interest in renting the building's office space.
Alchemy, founded in 1999, designs computer chips that run on small amounts of electrical power. They are to be used in portable and communications equipment. The company moves from 20,000 sf at 7800 Shoal Creek Blvd. in the north central submarket.
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