Thank you for sharing!

Your article was successfully shared with the contacts you provided.

AUSTIN-Thomas Properties Group Inc., CalSTRS and Lehman Brothers have closed, as planned, on the acquisition of a 3.5-million-sf office portfolio. The joint venture partnership has bought the 10-building, class A collection from affiliates of Blackstone Real Estate Advisors for $1.15 billion.

Los Angeles-based Thomas Properties Group’s executive vice president John R. Sischo told GlobeSt.com when the contract for the 82%-occupied portfolio went on the table to rapidly expand its presence in the region. The company owns the 333-acre Four Points Centre in the northwest submarket, where it’s building two office buildings in a 275,000-sf first phase. In one fell swoop, Thomas and partners have picked up nearly 2.5 million sf, or more than 50% of class A space in the CBD, and about one million sf in the northwest submarket.

The buy was funded with $907.5 million of debt financing proceeds and $295 million of equity. Thomas Properties Group funded $18.4 million of the equity, or 6.25%, getting property management, leasing and marketing as well.

On average, the assets are 20 years old. The CBD component consists of the 561,000-sf Frost Bank Tower at 401 Congress Ave.; a 459,000-sf high rise at 300 W. 6th St.; 404,000-sf San Jacinto Center at 98 San Jacinto Blvd.; 549,000-sf One Congress Plaza at 111 Congress Ave.; and 523,000-sf One American Center at 600 Congress Ave.

The northwest submarket properties are 193,000-sf Stonebridge Plaza II at 9600 N. Mopac Expressway; 203,000-sf Park 22 Office Complex at 8601 Ranch Rd. 2222; 273,000-sf Research Park Plaza I and II at 12301 and 12401 Research Blvd.; 179,000-sf Westech 360 at 8911 Capital of Texas Hwy. N; and 141,000-sf Great Hills Plaza at 9828 Great Hills Trail.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.