KKR to Sell Texas Office Park in More-Than $300 Million Deal
(Bloomberg) -- KKR & Co. agreed to sell Riata Corporate Park in Austin, Texas, in a deal valuing the eight-building campus at more than $300 million. The buyer is an affiliate of Starwood Capital Group, a person with knowledge of the matter said.
KKR acquired the technology-focused office campus spanning 688,1000 square feet for $258 million through a vehicle known as KKR Real Estate Partners Americas II LP in a transaction announced in January 2020. It has since upgraded amenities including Riata’s fitness center, outdoor space and cafe, and the sale implies a price of roughly $440 per square foot, compared with KKR’s entry price of $350 a square foot, the person said.
Starwood representatives didn’t respond to requests for comment.
KKR’s focus on growth markets led it to bet on Riata in Austin, one of the U.S.’s “most desirable cities,” according to Roger Morales, a KKR partner and head of real estate acquisitions.
“We are proud of the property and capital improvements delivered under our ownership in what has been a very successful pre-pandemic office investment,” Morales said in an emailed statement, adding that Riata is set to benefit from an ongoing migration to so-called Sunbelt cities.
KKR had roughly $32 billion in real estate assets under management as of June 30, and has made bets in other Sunbelt cities include 1111 Brickell in Miami and the Salesforce Tower Atlanta. Last year, it also invested in Sunbelt office-focused real estate investment trust Cousins Properties Inc., according to a securities filing.
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