AUSTIN, TEXAS — Cousins Properties Inc. (NYSE: CUZ) has acquired 816 Congress Avenue, a 434,000-square-foot, Class A office building located in downtown Austin. The company purchased the office tower for a net purchase price of $102.4 million, which equates to $236 per square foot. The acquisition was funded with cash proceeds from Cousins’ recent follow-on stock offering.
“This represents another attractive acquisition for Cousins as we continue to target quality urban office assets in the best Southeastern submarkets at valuations below replacement cost,” says Larry Gellerstedt, president and CEO of Cousins. “We have a long, successful history in Austin and are very excited about the opportunity to create value at 816 Congress Avenue.”
Cousins has played a prominent role in the Austin real estate market for more than 20 years, with a list of notable projects including Frost Bank Tower and Palisades West.
816 Congress Avenue is currently 78 percent leased to a diverse tenant base, including Teachers Retirement System of Texas, Lloyd Gosselink and AT&T Services. With overall office occupancy in the Austin CBD submarket at 89 percent, the building is well positioned for future occupancy growth, the company says.
Cousins intends to utilize its market expertise and strong local relationships to drive new leasing momentum. The company also plans on leveraging 816 Congress’ attractive location and recent capital improvements, which include a 12,000-square-foot terrace on the 15th floor with unobstructed views of the Texas Capitol Building. The building also offers a top-quality fitness facility and state-of-the-art conference center.
As of Dec. 31, 2012, the Atlanta-based company owned directly, or through joint ventures, 14 operating office properties totaling 7.8 million square feet. The company also owned directly, or through joint ventures, 16 operating retail centers totaling 3.7 million square feet.
The company’s stock price closed at $10.91 per share on Thursday, up from $7.70 per share a year ago.
— Matt Valley