Exclusive: Barings Provides $135M for Austin Office Refi
The tower is in the city’s so-called second downtown.
Barings has issued a $135 million refinancing loan for Domain Tower 2, a 332,265-square-foot office building in Austin, Texas, according to Yardi Matrix. Stonelake Capital Partners owns the property, while HPI provides leasing and marketing services.
JP Morgan held the previous, 2023-originated debt, the source shows. That note retired a 2019 construction loan issued by a three-bank consortium including JP Morgan, Citizens Bank and Frost Bank.
Domain Tower 2 came online in 2022. That same year, PayPal inked a 60,262-square-foot lease for the building’s top two floors. In 2024, PayPal expanded by another three continuous levels, bringing its total footprint to 151,750 square feet—nearly half of the property’s square footage. Other tenants include fintech company Wise, which leased 60,682 square feet, as well as Samsung and ShiftKey.
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The tower rises 24 stories, including 11 office and 12 parking levels, as well as one lobby. Floorplates typically measure 30,341 rentable square feet. The 11,000-square-foot amenity package consists of a landscaped terrace, conference center, gym and kitchen, among other features.
The tallest tower in Austin’s second downtown
Located at 10025 Alterra Parkway, the property is within Austin’s northern submarket in an area dubbed the second downtown, also known as Domain. In 2012, Stonelake acquired 33 acres inside Domain, planning its South End project, which was set to include 15 phases totaling 2,500 multifamily units and 1.6 million square feet of office space, as well as hospitality and retail spaces.
Stonelake has executed five of the planned stages. These include two multifamily properties dubbed Flatiron and The Bowen, as well as three office buildings: Domain Tower, Domain Place and Domain Tower 2, which is the tallest building within the master plan.
Office loan origination volume contracts slightly
Office debt origination registered a soft 2 percent year-over-year decline year-to-date through March, marking the sole asset class to contract, according to the quarterly Mortgage Bankers Originations Index survey. However, this slight downtick occurs after last year’s momentous 205 percent growth during the first quarter.
The second quarter shows promise as the capital markets continue to flow. In Austin, one of the largest office debt deals closed in April when Wells Fargo provided $265 million for Lincoln’s Sixth and Guadalupe, a 599,234-square-foot, 66-floor tower that debuted three years ago in the market’s central business district, according to Yardi Matrix.
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