Hines Extends, Amends Loan for Austin Office Building

Hines has extended and amended a $40.6 million financing package. The debt encumbers T3 Eastside, a 102,200-square-foot Class A office building in Austin, Texas, according to CommercialEdge information.

The initial financing, originated by Zions Bank in 2022, included a senior loan and a mezzanine note set to mature in February. Following the amendment, the debt now includes only the unpaid senior loan, in the amount of $33.9 million, due to mature in 2026.

Hines broke ground on T3 Eastside, its first mass timber office project, in 2022. The property is at 1200 E. Fourth St. in Austin’s Eastside neighborhood, close to Interstate 35 and 7 miles from Austin-Bergstrom International Airport.

Completed in 2023, the three-story building features 34,000-square-foot average floorplates and 15 residential units. Amenities include a fitness center, a yoga studio, locker rooms and showers, a tenant lounge, a rooftop patio, a conference room, bike storage and 233 vehicle parking spots. A JLL team spearheads leasing at the property.

High vacancy, strong construction activity

Austin’s office development pipeline remained one of the most active ones in the South as of February, a recent CommercialEdge report shows. The metro had 3.6 million square feet of space underway, representing 3.7 percent of total stock—the highest figure across the top 25 U.S. markets covered by CommercialEdge. Meanwhile, the metro’s office vacancy rate stood at 27.7 percent, the second-highest in the nation, marking a 530-basis-point increase year-over-year.

Another Austin office property recently benefitted from a financing extension. Schlosser Development obtained a new maturity date for the $63 million loan backed by an 83,839-square-foot building in the city’s West Central submarket. The mortgage was issued in 2020 as a construction note for the low-rise that came online in 2024.