- Aquila Commercial, Glendon Capital Management, and Palmatum Ventures acquired 515 Congress, a 26-story, 268,000-square-foot tower, from KBS for an undisclosed price.
- The county appraised the building at $117 million in 2026, down from $150 million in 2022; it is about 80% leased with 66,000 square feet available.
- Paired with Hines’ $151 million buy nearby in July, the trade suggests downtown Austin office pricing has found a floor after an oversupply-driven correction.
A joint venture of Aquila Commercial, Glendon Capital Management, and Palmatum Ventures has bought the 515 Congress tower in downtown Austin, according to The Real Deal.
The 26-story, 268,000-square-foot building sits at Congress Avenue and Sixth Street. Seller KBS declined to disclose the price.
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A Downtown Austin Office Seller Finds an Exit
California-based KBS listed the tower in early June. The building’s county appraisal tells the story of the market: $117 million in 2026, down from $150 million in 2022.
Downtown Austin has spent the past few years working through a correction driven by excess office supply. One developer quoted by The Real Deal compared the city to a teenager still growing up.
The Details
The tower is about 80% leased, per an Aquila spokesperson. Tenants include the Austin Business Journal, Boeing, Cloudera, and WebAI, and the building’s website listed 66,000 square feet available, roughly 25% of the tower.
JLL Capital Markets’ Mike McDonald, Jonathan Napper, Ryan Stevens, and Drew Fuller represented KBS. Aquila managing principal Ben Tolson said the location and tenant roster drew the Austin-based firm, which plans to invest in upgrades for current and prospective tenants.
Buyers Circle Downtown Austin Office
The sale follows Hines’ $151 million purchase of a 25-story tower at 405 Colorado St., two blocks away, in July.
It’s a notable turn from the office distress story dominating many markets, where losses are now landing on owners who bought at peak valuations.
Why It Matters
Two sizable downtown trades in three months suggest buyers see a pricing floor in Austin’s core. Well-leased towers at reset bases give new owners room to fund capital improvements and still compete for tenants.
The buyer mix matters too. Pairing outside capital with a local operator like Aquila is a common structure for office loan maturities and repositioning plays.
What’s Next
The same partners have been active before. In November 2025, Aquila and Serpa Partners, a firm associated with Palmatum, bought Cielo Center, a three-building, 286,000-square-foot campus in West Lake Hills, from Starwood.
Watch whether the JV’s leasing push at 515 Congress fills the remaining 25% of space, and whether more KBS-style exits follow as owners test a steadier market.
