Office sales continue to recover following multiple years of low-volume sales and several large portfolios exchanged hands in 2022.
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In this article, we take a look at the largest office sales of 2022 in Austin.
1. PS Business Parks Portfolio:
Size: 27,069,015 total square feet, 141,049 square feet of office space
Blackstone purchased a portfolio of 627 properties from PS Business Parks in 3Q 2022 for roughly $7.6 billion. The portfolio includes 27 million square feet of industrial, office, and retail properties scattered across the country, with concentrations in California, Texas, and Virginia. Included in this portfolio is 140,549 square feet of office space in Austin.
As a leading investment firm, this deal added to Blackstone’s already impressive portfolio of properties valued at $565 billion globally.
2. Karlin Portfolio
Size: 816,304 square feet
This portfolio was bought by Transwestern from Karlin Real Estate in 1Q 2022. The portfolio includes eight properties in Austin, totaling 810,931 square feet. At the time of sale, the buildings were 97% leased.
Transwestern is a national real estate firm specializing in development, tenant advisory, investment services, and property management. Transwestern currently owns 8,164,919 square feet across 65 properties nationwide.
3. Texas Public Finance Authority Portfolio
Size: 484,051 square feet
Texas Facilities Commission bought the Texas Public Finance Authority Portfolio from Texas Public Finance Authority in 3Q 2022. The portfolio includes 484,051 square feet of space across five properties in Austin.
Texas Facilities Commission is a state agency that focuses on the management of state government buildings.
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4. Domain Tower
Size: 309,883 square feet
The Carlyle Group purchased Domain Tower from iStar, Inc. in 1Q 2022. The Carlyle Group purchased a total of 58 properties in iStar’s national portfolio but this was the only Austin property. Domain Tower consists of 309,883 square feet out of the 16,857,866 total square feet in this portfolio. At the time of purchase, the tower was fully leased to Indeed.
The Carlyle Group is a multinational private equity company that specializes in asset management and investment solutions.
5. Foundry I & II
Size: 243,196 square feet
Beacon Capital Partners purchased Foundry I and II from Tishman Speyer in 3Q 2022 for roughly $200,000,000, or $833 per square foot. The two properties combined are 243,196 square feet. At the time of sale, the buildings were 96% leased.
Beacon Capital is a tenant-focused real estate investment firm with over 75 years in business. Beacon holds $13 million in investments across the United States.
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