JV Makes $1.1B Bet on Nearly 4M SF of Office

AUSTIN-Proving that persistence pays off, Thomas Properties Group Inc. has realized its wish to build a stronger presence in the city, entering into a $1.15-billion contract to buy 3.5 million sf in the CBD and northwest submarket. The 10-piece portfolio includes more than half of the CBD’s class A office space.

Thomas and some unidentified institutional partners are expected to close the deal within 60 days with affiliates of Blackstone Real Estate Advisors. John R. Sischo, executive vice president of Thomas Properties, tells GlobeSt.com that his company has worked for years to find this type of portfolio. “We think of Austin as one of those cities that will continue to expand at a great level,” he says. “The econometric models and demographers have reinforced that thought process.”

Thomas Properties’ goal was to add to its single asset, the 333-acre Four Points Centre near Lake Travis in the northwest submarket. Earlier this month, the Los Angeles-based developer broke ground on two office buildings in a 275,000-sf first phase for the mixed-use Four Points development.