Tier REIT Buys a Little, Sells a Little
By
Domain 7 in Austin, Texas
Dallas—With the execution of three transactions valued at an aggregate $217.7 million, Tier REIT Inc. continues to move forward with its strategic plan. The Dallas-based company just acquired its partner’s interest in two Austin office properties, and completed two office dispositions in Philadelphia and Burbank, Calif., effectively increasing its presence in one of its core markets and backing away from two locations that didn’t make its target list.
Tier REIT is laser-focused on seven markets that are demand-driven, amenity-rich locales benefiting from population and office-using employment growth. Austin ticks all the boxes, so the company took full ownership of the Domain 2 and Domain 7 office towers at the 300-acre The Domain mixed-use development with the acquisition of its partner’s 51 percent interest in the premier towers. The buildings—which total 337,000 square feet and boast tenant rosters featuring the likes of online vacation rental marketplace HomeAway, Amazon and Time Warner—were developed for approximately $45 million in 2014 by a joint venture between Shorenstein Properties, Deutsche Asset & Wealth Management and Endeavor Real Estate Group. Tier REIT acquired the remaining stake for $51.2 million…
