#USA #Austin #Cousins Properties #Sail Tower

Cousins Properties Expands Its Portfolio with a Strategic Acquisition

Cousins Properties, a reputable name in the real estate investment trust sector, is poised to make a significant addition to its portfolio by acquiring the Sail Tower, located at 601 West 2nd Street in downtown Austin, Texas. The property, a striking trophy lifestyle office space, spans 804,000 square feet and is under contract for an impressive net purchase price of $521.8 million. This acquisition is set to close in December, pending customary closing conditions.

Prime Location and Tenancy

The Sail Tower is strategically positioned close to the bustling Second Street entertainment district—a prime location that is likely to attract both visitors and tenants. Moreover, it boasts unobstructed views of Lady Bird Lake, enhancing its appeal as a workspace. Currently, the property is fully leased to a Fortune 20 company, providing a stable and reliable income stream as the lease extends until 2038.

Cousins Properties already has a substantial presence in Austin, with an existing office portfolio in the area totaling 1.7 million square feet, which is currently 93% leased. This acquisition not only strengthens its foothold in a thriving market but also aligns with the demand-driven growth Austin is experiencing.

Strategic Vision

Colin Connolly, the President and CEO of Cousins Properties, expressed excitement over the acquisition, stating, "We are thrilled to add this iconic office property, with a strong investment grade customer, to our Austin portfolio. Austin continues to exhibit strong demand fundamentals, attracting top talent and growing companies. This exciting transaction enables Cousins to enhance the quality of our leading lifestyle office portfolio and is immediately accretive to earnings."

As businesses seek quality spaces that offer more than just four walls, the Sail Tower stands out with its modern amenities and desirable location. The choice of tenant further validates the caliber of the property and enhances the overall appeal of Cousins Properties' investment strategy.

About Cousins Properties

Founded in 1958 and headquartered in Atlanta, Georgia, Cousins Properties operates as a fully integrated, self-administered, and self-managed REIT. The company focuses on investing in high-quality Class A office buildings, especially in high-growth Sun Belt markets. Their strategic approach revolves around acquiring trophy assets and seeking opportunistic investments, a consistent theme throughout their operational history. By enhancing shareholder value through adept management and foresight in property acquisition, Cousins reinforces its commitment to enterprising real estate endeavors.

For those interested in learning more about this acquisition and other corporate developments, further details can be found on the Investor Relations page of Cousins Properties' website. The acquisition of Sail Tower not only expands Cousins' portfolio in a competitive market but also reflects the ongoing trend of businesses gravitating toward exclusive office spaces that promise convenience and excellence.

This acquisition underscores Cousins Properties' continuing evolution in the dynamic landscape of commercial real estate, positioning them favorably for future opportunities amidst a growing demand for premium office offerings.