Austin is acquiring an office property from Brandywine Realty Trust for $107.6 million, which the city plans to turn into a public safety headquarters. Known as One and Two Barton Skyway, the facility in Southwest Austin measures 386,000 square feet. The cost comes in at $275 per square foot.
Located at 1501 and 1601 South MoPac Expressway, the property consists of four office buildings. Even with the deal, Brandywine will maintain ownership in Four Barton Skyway, which is 94 percent leased.
The move will continue on Brandywine's strategy to bolster its balance sheet. The REIT in its third quarter financial report said that it sold an office portfolio in Plymouth Meeting, Pennsylvania for $65.5 million. The company has raised its sales target this year from $90 million to $150 million. As of September 30, Brandywine had cash and equivalents of $36.5 million. Also, its core portfolio was 88.7 percent leased and 87.2 percent occupied.
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“This transaction is consistent with our capital recycling and portfolio management objectives. This sale both strengthens our balance sheet and positions us to seize high-quality, strategic investment opportunities,” Jerry Sweeney, president and CEO of Brandywine, said of the Barton Skyway transaction.
“At the same time, we remain deeply committed to Austin, exemplified by our development of 405 Colorado and Uptown ATX, our 66-acre master-planned development that is a cornerstone of Austin’s emerging second downtown.”
Austin, particularly features strong demographics. According to data cited by Brandywine, the city has seen jobs rise by two percent year-over-year to 27,000, and by 2030 the population is estimated to be 2.8 million.
"The city is positioned as a hub of innovation and economic opportunity," Brandywine said.
"Major corporations, including Apple, Samsung, and Tesla, continue to expand their footprint in the region, underscoring its attractiveness for investment and development."
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