Austin Could buy Tokyo Electron's Former Campus for $87M – The Real Deal
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In talks to pay $87M for 107-acre property in Southeast Austin
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The city of Austin is eyeing Tokyo Electron’s former North American headquarters in Southeast Austin, more than five months after the 107-acre property hit the market.
The city is in talks to pay about $87 million for the two-building, 189,800-square-foot office campus at 2400 Grove Boulevard, along with an adjacent 60-acre tract that’s ripe for development, the Austin Business Journal reported.
The Austin City Council will consider the acquisition on March 21. There’s a possibility of Tokyo Electron leasing back the two buildings until March 2025.
If the city proceeds with the purchase, it intends to repurpose the two buildings for a second Combined Technology and Emergency Communications Center. The city would also explore ideas for the undeveloped parcel, including affordable housing.
The possible sale comes as Tokyo Electron adjusts its Austin operation. The semiconductor manufacturing equipment producer leased almost 99,000 square feet in the RiverSouth building, at 401 South First Street, in February, with plans to expand elsewhere. Tokyo Electron aims to open an office in Taylor, northeast of Austin, along with a research and development facility somewhere else in the metro, upping its Austin-area footprint from 189,000 square feet to 238,800 square feet.
The Taylor office, spanning 40,000 square feet, would be located near Samsung’s semiconductor facility, where some of Tokyo Electron’s employees work. Samsung is a major client for Tokyo Electron, which partially drove the company’s decision to sell its Southeast Austin campus.
“The reality is, we’re going to have that office there in support of the key customer, which is Samsung,” Tokyo Electron’s Rick Turner told the outlet. “But, again, it’s still early. We’re still looking at potential locations for that office.”
Tokyo Electron is still exploring locations for its research and development facility, possibly leasing space to expedite the process. Wherever it chooses, the company is committed to sustainability, exemplified by its recent move to the RiverSouth office tower, renowned for its platinum rating in energy efficiency and cutting-edge technology.
—Quinn Donoghue
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