After nearly two years of ownership, KKR has agreed to sell its Riata Corporate Park in Austin, Texas, in a transaction valued at more than $300 million. The sale is expected to close in the coming months.
The buyer is an affiliate of Starwood Capital Group, a person with knowledge of the matter told The Business Times. Cushman & Wakefield’s Institutional Capital Markets team advised KKR on the deal.
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The eight-building Riata Corporate Park offers 688,100 square feet of Class A office space, with floorplates ranging from 22,000 to 33,000 rentable square feet. The 56-acre site also includes a development site that can accommodate a new 64,000-square-foot office building.
The campus features a tenant lounge, fitness centers, barbecue grills, outdoor courtyards that food trucks frequent, as well as basketball and tennis courts. Riata Corporate Park is adjacent to a 16-acre neighborhood park with tennis courts and trails, while also providing easy access to Route 183.
The corporate park was originally built between 1998 and 2000, with high density use in mind. Since then, the property has been fully leased, attracting a mix of tenants from the technology, financial services and health-care industries, according to KKR.
Comprehensive capital improvements
KKR’s history with Riata Corporate Park dates back to December 2019, when the company acquired the property in a transaction valued at $258 million as part of its Real Estate Partners Americas Fund II alongside Endeavor Real Estate Group. At the time of KKR’s acquisition, the company already had plans to invest $11 million of capital improvements into Riata Corporate Park.
KKR and Endeavor have substantially upgraded the property’s fitness center, cafe, landscaping and outdoor amenities. The renovations also included new roofing, new office park branding, 12 new building entryways and HVAC systems equipped with Merv-13 filters in every building. The two companies also completed significant deferred maintenance.
Roger Morales, KKR partner and head of real estate acquisitions, said in prepared remarks that Riata Corporate Park is well positioned to continue benefiting from the migration of companies to Sun Belt cities.