AUSTIN, TEXAS — Kilroy Realty Corp. (NYSE: KRC) has acquired Indeed Tower, a 36-story office development in Austin’s Central Business District for $580 million in an off-market transaction.
Completed in May 2021, Indeed Tower is situated on a full city block at the intersection of 6th and Colorado streets. The 730,000-square-foot property was 57 percent leased at the time of sale, with 42 percent of the building occupied by online employee recruiting platform Indeed.com.
The property features 10,000 square feet of ground-floor food and beverage space; 30,000 square feet of outdoor deck space; a 35,000-square-foot historic post office building that can accommodate a variety of uses; and a private park. Eastdil Secured and Allen Matkins advised Kilroy Realty on the acquisition of the tower, which is targeting LEED Platinum certification.
“I can’t overstate how well Indeed Tower fits with our strategic and property objectives,” says John Kilroy, chairman and CEO of the Los Angeles-based buyer. “It provides us with scale that will support future growth, is anchored by an investment-grade technology tenant and provides a value-add opportunity through lease-up in an office market that is strengthening.”
Austin has the fourth largest concentration of tech talent behind San Francisco, Seattle and New York and is ranked number one in tech workforce in-migration, according to research by Kilroy. With this acquisition, the company will be the fifth largest owner of Class A office space in the city’s Central Business District.
Also announced at the same time, Kilroy is in escrow to purchase a land site directly adjacent to its 2100 Kettner project in the Little Italy neighborhood of San Diego for $42 million; and has acquired the ground lease underlying its 488,000-square-foot Key Center project in Bellevue, Wash., for $47 million. The company plans to develop up to 275,000 square feet of office space at the San Diego site.
Kilroy Realty Corp. is a landlord and developer primarily based on the West Coast. The company has a major presence in San Diego, the Greater Los Angeles area, the San Francisco Bay Area and the Pacific Northwest. The company’s stock price closed on Wed., June 16, at $72.39 per share, up from $63.88 on the same date last year.
—Katie Sloan