Cousins Properties Incorporated (NYSE: CUZ) has acquired 816 Congress Avenue, a 434,000-square-foot, Class-A office building located in Downtown Austin, Texas. The Company purchased the office tower for a net purchase price of $102.4 million, which equates to $236 per square foot. The acquisition was funded with cash proceeds from Cousins’ recent follow-on stock offering.
“This represents another attractive acquisition for Cousins as we continue to target quality urban office assets in the best southeastern submarkets at valuations below replacement cost,” said Larry Gellerstedt, President and Chief Executive Officer of Cousins. “We have a long, successful history in Austin and are very excited about the opportunity to create value at 816 Congress Avenue.”
Cousins has played a prominent role in the Austin real estate market for over 20 years, with a list of notable projects including Frost Bank Tower and Palisades West.
816 Congress Avenue is currently 78 percent leased to a diverse tenant base, including Teachers Retirement System of Texas, Lloyd Gosselink, and AT&T Services. With overall office occupancy in the Austin CBD submarket at 89 percent, the building is well positioned for future occupancy growth.
Cousins intends to utilize its market expertise and strong local relationships to drive new leasing momentum. The Company also plans on leveraging 816 Congress’ attractive location and recent capital improvements, which include a 12,000-square-foot terrace on the 15th floor with unobstructed views of the Texas Capitol Building. The building also offers a top quality fitness facility and state-of-the-art conference center.
About Cousins Properties Incorporated
The Company is a leading diversified real estate company with extensive experience in development, acquisition, financing, management and leasing. Based in Atlanta, the Company actively invests in office and retail projects. The Company is a fully integrated equity real estate investment trust (REIT) and trades on the New York Stock Exchange under the symbol CUZ.
Certain matters discussed in this press release are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risk and actual results may differ materially from projections. Readers should carefully review the Company’s financial statements and notes thereto, as well as the risk factors described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and other documents the Company files from time to time with the Securities and Exchange Commission. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.