February 20, 2019
Joint venture partners TIER REIT Inc. and Cielo Property Group announced an intent to market the 29-story, 345,000-square-foot Third + Shoal office building. The tower at 601 W. Third St. in Austin is still under construction, with tenant finish-out underway. HFF has the listing.
Area sources suggest that the property, which is already leased to tenants such as Facebook, could draw bids in excess of $600 per square foot, representing the most paid for an office property so far in Austin.
The announcement was made by TIER REIT CEO Scott Fordham, who suggested that significant capital looking for high-quality Austin properties was the motive for putting the building on the sales block. “We believe the sale of the property would allow us to capitalize on the value created, and use this attractive source of capital to fund expansion of our development pipeline, reduce leverage or rebalance the portfolio across our target markets,” he added.
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