Cousins Properties has announced its plan to acquire Sail Tower, a prominent lifestyle office property in Austin. The acquisition of the 804,000 square foot building, located at 601 West 2nd Street, is set for a net purchase price of $521.8 million. The deal is expected to close in December, pending customary closing conditions.
Sail Tower is situated near Austin's Second Street entertainment district and offers views of Lady Bird Lake. It is part of Cousins' existing Downtown Austin office portfolio, which spans 1.7 million square feet and is currently 93% leased. Developed in 2022, Sail Tower's office space is fully leased to a Fortune 20 company with an S&P rating of AA+ through 2038.
Colin Connolly, President and CEO of Cousins Properties, said: "We are thrilled to add this iconic office property, with a strong investment grade customer, to our Austin portfolio." He added that the transaction enhances the quality of their lifestyle office portfolio and will be immediately accretive to earnings.
Further details on the transaction can be found on the Investor Relations page of Cousins' website.
Cousins Properties operates as a real estate investment trust (REIT) based in Atlanta. The company primarily invests in Class A office buildings across high-growth Sun Belt markets. Founded in 1958, Cousins focuses on development, acquisition, leasing, and management of high-quality real estate assets.