AUSTIN, TEXAS – Trammell Crow Company and joint venture partner Principal Real Estate Investors are pleased to announce the acquisition of the Green Water Treatment Plant (GWTP) parcel known as 500 W. 2nd Street in downtown Austin from the City of Austin. Construction is scheduled to begin immediately on the 500,436 square foot project, which will feature 489,403 square feet of Class A speculative office space and 11,033 square feet of ground floor restaurant/retail space. The building is scheduled to be complete by 1Q 2017. 500 W. 2nd Street is the second of four parcels to be developed by Trammell Crow Company as part of its partnership with the City of Austin to bring new vibrancy and land uses to downtown Austin and the emerging Seaholm Development District.
Located directly north of the first phase of the GWTP project and bounded by San Antonio Street, Nueces Street and 2nd Street, the location of 500 W. 2nd Street offers unmatched proximity to restaurants, retail, entertainment, residences and outdoor amenities like the Ann and Roy Butler Hike and Bike Trail. Floor plates in the office tower will be among the largest in downtown Austin averaging approximately 32,500 square feet. Seven outdoor terraces on six different levels throughout the building will offer tenants unique amenity spaces with unparalleled views of Lady Bird Lake, the Hill Country and downtown. Building on the success of the 2nd Street District, the 11,033 square feet of ground floor restaurant/retail space is designed to offer high ceilings and outdoor/sidewalk dining opportunities. The building will feature two parking levels below grade and 12 levels above grade with access from both San Antonio and Nueces Streets. The development team will seek LEED® Gold certification and an Austin Energy Green Building 2-Star rating offering lower operating costs and increased employee wellness and productivity.
The lobby of 500 W. 2nd Street includes a two-story, 26 foot tall frameless glass wall with modern finishes bringing the natural environment and vibrancy of 2nd Street into the lobby.
A portion of the 14th floor will serve as tenant amenity space with a highly flexible 8,628 square foot conference center and great room including a 2,739 square foot outdoor terrace overlooking Lady Bird Lake. In addition, the building will offer tenants an expansive, modern fitness center with locker rooms and showers on the mezzanine level.
500 W. 2nd Street will also feature Austin’s first elevator destination control system optimized for people flow and designed to save time with added efficiency.
500 W. 2nd Street is the second of four phases of a master planned project for the former Thomas Green Water Treatment Plant. Construction on the first phase, a three-tiered mixed-use tower with approximately 440 apartments, including 50 affordable units and more than 40,000 square feet of office and retail space known as Northshore, began earlier this year and is set to deliver 4Q 2015. Once completed, the entire master planned project will be comprised of more than 1.7 million square feet of mixed-use commercial development
“Our department is thrilled to lead this project for the City and to have a development partner that moves the City’s vision forward,” said Director of the City of Austin’s Economic Development Department Kevin Johns. “Reaching this milestone brings us closer to new jobs being created and new property tax revenue to the City’s General Fund and the Affordable Housing Trust Fund.”
“We are pleased to officially kick off the second phase of the Green Water Treatment Plant redevelopment with our partner, Principal Real Estate Investors and the City of Austin,” said Adam Nims, Principal with Trammell Crow Company’s Austin Business Unit. “500 W. 2nd Street offers an irreplaceable location in the middle of the thriving 2nd Street mixed-use neighborhood, and a design that provides large efficient floor plates, incredible views, advanced building systems and infrastructure, and unmatched amenities to prospective tenants.”
Joe Wanninger, Assistant Manager Director with Principal Real Estate Investors, noted, “Principal Real Estate Investors has a positive outlook on the Austin economy and real estate market. 500 West 2nd Street will be one of the highest quality assets in Austin and in our entire portfolio nationwide. We look forward to executing our strategy with our long-term partner, Trammell Crow Company.”
As part of a national office development program, Trammell Crow Company and Principal Real Estate Investors have completed 3.3 million square feet and currently have an additional 1.6 million square feet in active phases of construction of Class A office projects throughout major Texas markets.
The building was designed by the Austin office of Gensler with Beck Commercial Construction serving as the project’s general contractor. Adam Nims, Aaron Thielhorn, Brad Maples and Mark Fowler with Trammell Crow Company and Joe Wanninger from Principal Real Estate Investors will lead the development team. Leasing will be handled by Troy Holme, Casey Ford and Katie Ekstrom with CBRE Austin.
“We are proud to represent 500 W. 2nd Street and look forward to its positive impact on our local community and enhancement of our ever evolving downtown skyline,” explains Troy Holme, Senior Vice President of Brokerage Services for CBRE. “We truly believe that the building’s design, amenities and location will make this project the preeminent office building in Austin.”
About the Economic Development Department
The City’s Economic Development Department, formed in 2002, leads redevelopment, small business development, business recruitment, international economic development, and the cultural arts, music, and film programs for the City. With a focus on revitalizing Downtown, Economic Development has implemented catalyst redevelopment projects, including the six-block core of the 2nd Street Retail District, which won the 2011 Gold Award from the International Economic Development Council for Public-Private Partnerships.
About Principal Real Estate Investors
Principal Real Estate Investors manages or subadvises $54.3 billion in commercial real estate assets. The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.
About Trammell Crow Company
Trammell Crow Company, founded in 1948, is one of the nation’s leading developers and investors in commercial real estate. The Company has developed or acquired nearly 2,600 buildings valued at nearly $60 billion and over 540 million square feet. As of September 30, 2014, Trammell Crow Company had $5.1 billion of projects in process and 2.9 billion in its pipeline.
Trammell Crow Company’s teams are dedicated to building value for its clients with professionals in 16 major cities throughout the United States. The company serves users of and investors in office, industrial, retail, healthcare, multi-family residential and mixed use projects. For those who occupy real estate, TCC can execute the development or acquisition of facilities tailored to meet its clients’ needs. For investor clients, the company specializes in joint venture speculative development, acquisition/re-development ventures, build-to-suit development, or providing incentive-based fee development services.
Trammell Crow Company is an independently operated subsidiary of CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). For more information visit www.TrammellCrow.com.