Cousins Properties to Acquire Trophy Lifestyle Office Property in Downtown Austin

Cousins Properties (NYSE: CUZ) has announced plans to acquire Sail Tower, an 804,000 square foot trophy lifestyle office property in Downtown Austin, for $521.8 million.

Rhea-AI Summary

Cousins Properties (NYSE: CUZ) has announced plans to acquire Sail Tower, an 804,000 square foot trophy lifestyle office property in Downtown Austin, for $521.8 million. The transaction is expected to close in December 2024. Located near the Second Street entertainment district, the property offers unobstructed views of Lady Bird Lake and is close to Cousins' existing 1.7 million square foot Downtown Austin portfolio.

Developed in 2022, Sail Tower is 100% leased to a Fortune 20 company (S&P: AA+) through 2038. The acquisition will enhance Cousins' lifestyle office portfolio and is expected to be immediately accretive to earnings.

Positive

• 100% occupancy with long-term lease through 2038
• High-quality tenant (Fortune 20 company with AA+ credit rating)
• Immediate earnings accretion expected
• Strategic location near existing portfolio in strong Austin market
• New construction (2022) reducing maintenance needs

Negative

• Large capital commitment of $521.8 million
• Single-tenant concentration risk

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ATLANTA, Dec. 10, 2024 /PRNewswire/ -- Cousins Properties (NYSE: CUZ) announced today that it is under contract to acquire 601 West 2^nd Street, also known as Sail Tower, an 804,000 square foot trophy lifestyle office property in Austin, for a net purchase price of $521.8 million.  The transaction is expected to close in December, subject to customary closing conditions.

Sail Tower is located near the Second Street entertainment district in Downtown Austin and offers unobstructed views of Lady Bird Lake.  It is just a few blocks away from Cousins' existing 1.7 million square foot Downtown Austin office portfolio, which is currently 93% leased. Sail Tower was developed in 2022 and the office space is 100% leased to a Fortune 20 company (S&P: AA+) through 2038.    

"We are thrilled to add this iconic office property, with a strong investment grade customer, to our Austin portfolio," said Colin Connolly, President and Chief Executive Officer of Cousins Properties.  "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."

Please refer to the Investor Relations page of Cousins' website for a presentation with additional information on the transaction discussed in this release.

About Cousins Properties

Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments. For more information, please visit www.cousins.com.

CONTACT:
Roni Imbeaux
Vice President, Finance and Investor Relations
404-407-1104
rimbeaux@cousins.com

 

View original content:https://www.prnewswire.com/news-releases/cousins-properties-to-acquire-trophy-lifestyle-office-property-in-downtown-austin-302327587.html

SOURCE Cousins Properties

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the purchase price for Sail Tower acquisition by Cousins Properties (CUZ)?

Cousins Properties is acquiring Sail Tower for a net purchase price of $521.8 million.

When is the Sail Tower acquisition expected to close?

The acquisition is expected to close in December 2024, subject to customary closing conditions.

What is the occupancy rate and lease term for Sail Tower?

Sail Tower is 100% leased to a Fortune 20 company through 2038.

How large is the Sail Tower property in Austin?

Sail Tower is an 804,000 square foot trophy lifestyle office property.