Atlanta-based publicly traded real estate investment trust Cousins Properties (Cousins) recently announced it acquired the remaining 50% in 300 Colorado for a gross purchase price of $162.5 million. The company also received a credit of $15.7 million at closing for its partners’ — Riverside Resources and Ironwood Real Estate — share of tenant improvements and allowances for future leasing costs. Moreover, Cousins prepaid the construction loan in its entirety and without penalty.
This acquisition is the latest move in the company’s portfolio restructuring activity in 2021. According to prepared remarks by Cousins President and CEO, Colin Connolly, the company has invested $1 billion in ground-up developments and acquisitions nationwide, and has also sold several hundred million dollars’ worth of older assets. This includes the recent sale of 816 Congress, another of the company’s trophy Austin office assets, for $174 million.
Unlike the class A+ property on Congress Avenue that was built in 1982, 300 Colorado is a new development that was completed early this year. Per the official statement of acquisition, the 32-story high-rise on Colorado Street incorporates 369,000 square feet of state-of-the-art Austin office space. The company release also noted that 88% of the property was leased at the time of remaining stake purchase.
“We’ve had a highly productive year at Cousins, during which we invested over $1 billion in new development starts and acquisitions while selling over $600 million of primarily older vintage, capital-intensive assets,” Connolly said. “We are excited to consolidate our ownership in 300 Colorado. This newly constructed trophy property offers a dynamic environment, which is a differentiator with today’s growing customers.”
Indeed, the property continues to attract tenants with plans to expand its Austin presence. For example, software company Miro signed a 72,000-square-foot lease at the location in November, with a move-in scheduled for next year. The firm will occupy floors 17 through 19, filling in for the lease with Atlassian, which expires in January.
The brand new tower features floor plates ranging from 21,256 square feet to 22,917 square feet. On-site amenities include: nearly 900 parking spaces across 14 levels; a fitness center; locker rooms; first- and second-floor retail totaling roughly 10,000 square feet; six high-speed passenger elevators; controlled access; and a conference center and lounge.