New office tower underway at Austin’s Domain

10:27 a.m. Friday, Dec. 30, 2016 Business
Boka Powell / Hangar Technology
Construction has started on Domain Tower, an 11-story office building that will bring 310,000 square feet of space to market at the Domain mixed-use project in North Austin.

Developers have started work on Domain Tower, an 11-story building that will bring 310,000 square feet of space to market when it opens in early 2018.

Stonelake Capital Partners and HPI Real Estate Services & Investments are developing the project, which will be at 10721 Domain Drive, at the entrance to the Domain development off MoPac Boulevard in North Austin. Domain Tower will be the first office building at the Domain from a developer other than Austin-based Endeavor Real Estate Group, the original developer of the Domain.

“As the Austin economy continues to expand, we are seeing strong demand from companies looking for newly constructed Class-A office (space) to elevate their corporate brand and attract talented professionals,” said Kenneth Aboussie, Stonelake’s managing partner.

Initial interest is coming from prospective tenants in the technology and financial services industries, the developers said. They are not disclosing the cost of the project.

J.P. Morgan is the construction lender for Domain Tower, and BOKA Powell is the architect. Among other features, the building will have outdoor terraces for company events; a tenant lounge and conference areas that open onto a landscaped terrace allowing tenants to work outdoors; a fitness center; a food truck area, a parking garage and an on-site concierge. There also will be shuttle service throughout the Domain, which is home to many retailers, restaurants, entertainment venues, hotels, offices, apartments, and other development.

HPI’s Sam Houston, Richard Paddock and J.D. Lewis will lease Domain Tower.

Stonelake contributed the land for Domain Tower into a joint-venture with HPI. Stonelake announced this year the closing of Stonelake Opportunity Partners IV, Stonelake’s fourth real estate private equity fund with $262 million in capital commitments.

Stonelake acquired 31 acres at the Domain’s entrance in 2011. Domain Tower marks the first phase of Stonelake’s development plans, which over the next decade call for 3.5 million square feet office, multifamily and retail space — including plans for a hotel, grocery, park and restaurants — at a total projected cost of $1.1 billion.

Stonelake’s next phase will be Flatiron | Domain, a five-story, 372-unit apartment building, which is due to break ground in 2017 and wrap up in 2018.

Domain Tower and Flatiron | Domain represent 625,000 square feet of the 3.5 million square feet of development planned.

Other office buildings planned for the Domain include a 15-story tower called Domain 11 and a 17-story building called Domain 12, both slated for the north end of Alterra Parkway. Endeavor is teaming with Dallas-based Tier REIT on those buildings, each of which will have 315,000 square feet of space.

A construction start date has not yet been announced for Domain 11 and Domain 12, which would be the tallest towers to date at the Domain.

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