Shorenstein Properties Sells the Alpha Building in Mueller to the Teacher Retirement System of Texas

Sale Demonstrates Demand for High-Quality Properties as Companies Plan for Return to the Office

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Jan 03, 2022, 09:00 ET

SAN FRANCISCO, Jan. 3, 2022 /PRNewswire/ -- Shorenstein Properties, LLC ("Shorenstein"), an owner and operator of high-quality office, residential and mixed-use properties across the U.S., today announced the sale of the Alpha Building ("the Property") to the Teacher Retirement System of Texas ("TRS"). Terms of the transaction were not disclosed.

The Alpha Building is located north of downtown Austin in Mueller, a 750-acre, pedestrian-oriented, mixed-use community that provides a vibrant live-work-play environment alongside Austin's premier restaurants, retail and entertainment venues. Situated at the heart of the Mueller Business District, the Alpha Building is six stories and contains approximately 210,000 square feet of office space. Designed by Page Sutherland Page, the Property features large 35,000-50,000 square foot floor plates, tall 14-foot ceiling heights and outdoor spaces on each floor of the building, including an expansive landscaped courtyard at the ground level.

The Alpha Building is the first of four buildings that Shorenstein has planned in the Mueller Business District that will total approximately 800,000 square feet. The next building Shorenstein will develop is the Bravo Building, a 250,000 square foot office building that TRS has committed to along with the Alpha Building. TRS plans to relocate its headquarters by moving select divisions to the Alpha Building in the spring of 2023 and the remainder of its staff to the Bravo Building upon completion in 2024, reuniting its investment team with the remainder of the agency.

"We are thrilled to partner with TRS on their headquarter campus at Mueller," said Colby Wick, Managing Director at Shorenstein. "Mueller marries urban-style retail and entertainment with a lower density neighborhood setting that includes generous parks and outdoor spaces – a compelling combination for companies returning to the office post-pandemic. We're confident TRS has made the right decision and will enjoy calling Mueller home."

"TRS looks forward to serving members in our new Austin location. The campus in the Mueller development ensures the System's growing membership will have improved access to counseling staff and other services outside busy downtown Austin," said Brian Guthrie, Executive Director of TRS.

"TRS is beginning a new chapter, and this transaction will generate a positive, long-lasting impact for the System's members," said Troy Holme, Executive Vice President at CBRE. "The search was long and carefully considered, but the right opportunity materialized at Mueller that will allow the System to best serve its membership of educators throughout Texas."

Shorenstein is currently planning its next two buildings at Mueller, known as the Charlie and Delta Buildings, which will contain approximately 350,000 square feet when they deliver in 2024. Shorenstein has invested in Austin since 2013, when it developed the first of three office buildings at the Domain in Northwest Austin.

CBRE's Troy Holme and Peter Jansen represented TRS in the transaction.

About Shorenstein Properties LLC
Founded in 1960, Shorenstein Properties LLC is a privately-owned, real estate firm that owns and operates high-quality office, residential and mixed-use properties across the U.S., with offices in San Francisco and New York. Since 1992, Shorenstein has sponsored twelve closed-end investment funds with total equity commitments of $8.8 billion, of which Shorenstein committed $723.5 million. The firm uses its integrated investment and operating capabilities to take advantage of opportunities that, at the particular time in the investment cycle, offer the most attractive returns. Investments have included ground-up developments, asset repositioning and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. More information is available at www.shorenstein.com.

About Teacher Retirement System of Texas
The Teacher Retirement System of Texas (TRS) is among the nation's largest retirement systems. Its core mission is to make a positive difference in the lives of Texas educators by prudently investing and managing trust assets and delivering member benefits. As of 8/31/2021, the TRS pension fund had a net market value of $201.8 billion.

Contacts

Shorenstein
Jon Keehner / Woomi Yun / Erik Carlson
Joele Frank, Wilkinson Brimmer Katcher
212.355.4449

SOURCE Shorenstein Properties LLC