Hines Pays $151M for Austin Asset

Hines has started investing in the U.S. office market once again. The company purchased 405 Colorado, a 206,000-square-foot Class AA trophy property in downtown Austin, Texas. Brandywine Realty Trust sold the asset for $151 million, according to Yardi Matrix.

The 25-story tower came online in 2021 and, two years later, reached a 100 percent occupancy rate. In 2023, Barclays also issued a $62.7 million CMBS loan, the data provider shows.

The building features a tenant base including JP Morgan, Bain & Co. and AllianceBernstein, as well as Cushman & Wakefield and the parent company of Snapchat, Snap Inc.

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The high-rise has floorplates ranging between 17,238 and 19,087 square feet. Its amenity package comprises a sky lounge with conference rooms on the 14th floor, as well as a café and terrace, among others.

The office revival lures Hines back

This deal aligns with Hines’ beliefs that the office sector is currently undergoing recovery with demand clustered in fully leased trophy properties, according to a company statement. The company’s investment strategy in the market derives from its convictions, selectively seeking assets with strong tenants and highly visible income.

Current office building trends are driving the recovery, particularly growing demand. The sector registered 7 million square feet of net absorption in the trailing 12 months through March 2026, according to Hines research. That included three consecutive quarters of positive figures, marking the best showing since the pandemic.

Downtown Austin’s deals extend beyond trophy assets

Austin’s office investment volume stood at $543 million year-to-date through May, with assets changing hands for $162 per square foot, according to a Yardi Matrix report. Hines paid $733.7 per square foot for 405 Colorado, a figure that more than quadrupled the market average logged earlier this year.

The metro’s central business district showcased sustained demand with other deals closing this year. In May, DRA Advisors sold 823 Congress, a 16-story tower within walking distance of 405 Colorado. The new owner, a local Austin company dubbed Brick Row, plans to renovate the 1970-built property, the Austin Business Journal reported.