DALLAS--(BUSINESS WIRE)--TIER REIT, Inc. (NYSE: TIER) announced today that it has sold Loop Central, a 575,000-square-foot office building in Houston, Texas. The sale follows the dispositions of 500 East Pratt and Centreport Office Center earlier this year, which together with Loop Central were previously announced as under contract for sale.
TIER REIT also announced that it has acquired the remaining partnership interest in Domain 8, a 291,000-square-foot office building located at The Domain in Austin, Texas. TIER REIT was the co-developer and 50% owner of Domain 8, which delivered in the second quarter of 2017 fully leased primarily to Amazon and Facebook.
On a pro forma basis, including the stabilized delivery of Domain 8, Domain 11 and Third + Shoal, the Austin market will represent approximately 45% of the Company’s total net operating income while the Houston market will decrease to less than 20% of total net operating income.
“With these strategic transactions, we are not only refining our presence in Houston but further increasing our control of the office space at The Domain,” stated Scott Fordham, Chief Executive Officer of TIER REIT. “Our office ownership at The Domain now totals approximately 1.2 million square feet, representing over 75% of the competitive office space in this premier micro-market.”
“We also continue to grow organically within The Domain,” continued Mr. Fordham, “including the upcoming delivery of our 324,000-square-foot Domain 11 development project at the end of this year. In addition, our Domain 9, Domain 10 and Domain 12 proposed developments are fully designed and permitted, which would add another 900,000 square feet to Austin’s ‘second downtown.’”
“Tenant demand throughout the project remains strong with no competitive projects planned at The Domain,” added Mr. Fordham. “As a result, we anticipate commencing construction on at least one additional new building at The Domain this year.”
About TIER REIT, Inc.
TIER REIT, Inc. is a publicly traded (NYSE:TIER), self-managed, Dallas-based real estate investment trust focused on owning quality, well-managed commercial office properties in dynamic markets throughout the U.S. TIER REIT’s vision is to be the premier owner and operator of best-in-class office properties in TIER1 submarkets, which are primarily higher density and amenity-rich locations within select, high-growth metropolitan areas that offer a walkable experience to various amenities. Our mission is to provide unparalleled, TIER ONE Property Services to our tenants and outsized total return through stock price appreciation and dividend growth to our stockholders.
For additional information regarding TIER REIT, please visit www.tierreit.com or call 972.483.2400.
Certain statements made in this press release that are not based on historical information are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements for which no assurance can be provided. TIER REIT undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances, or otherwise. For additional disclosure regarding these and other risks faced by the Company, see the disclosure contained in our public filings with the Securities and Exchange Commission, including, without limitation, our most recent Annual Report on Form 10-K.