Credit Suisse Acquires Austin Office Tower

A partnership of TIER REIT, Invesco and Cielo sold the Class AA asset located in the downtown area. The 29-story property came online earlier this year.
Third + Shoal. Image courtesy of TIER REIT

Credit Suisse Asset Management has acquired Third + Shoal, a 29-story office building in Austin, Texas. The Zurich-based firm purchased the asset on behalf of Credit Suisse Real Estate Fund International, a fund for qualified investors that invests worldwide. The building was purchased from a partnership of TIER REIT, Invesco and Cielo. HFF represented the sellers in the deal.

The newly developed property is 100 percent leased and is the largest property in Credit Suisse Real Estate Fund International’s portfolio, according to the company. The 345,000-square-foot office property was completed earlier this year and is located at 607 W. Third St., in the heart of downtown. The property is aiming for LEED Gold certification and includes 12,327 square feet of ground-floor retail, a rooftop terrace, bike locker and showers, as well as a 12-story parking garage.

The Austin office sector has seen strong demand over the past year, as major companies such as Google, Facebook and WeWork are taking space in the Texas capital. Last December, job growth was up 3.3 percent in Austin year-over-year, according to a recent Yardi Matrix report. One of the biggest office completions in Texas over the past year was Oracle’s waterfront campus overlooking Lady Bird Lake, in the heart of the city. The 560,000-square-foot campus will eventually accommodate upwards of 10,000 employees.