Apple buys four-building office complex in Northwest Austin


Technology giant Apple Inc. has purchased Riata Crossing North, a four-building office complex in Northwest Austin near the site of its ongoing Austin expansion.

The sale of the land and buildings closed Wednesday, according to a deed filed with Travis County. The price was not disclosed.

Rachel Wolf, an Apple spokeswoman, said the company had no comment.

The seller of the 350,000-square-foot complex on Riata Vista Circle was an entity of San Francisco-based Spear Street Capital. Apple already occupies the entire complex, which it had been leasing. Riata Crossing is across the street from where Apple is building its new Americas Operations Center, a 1-million square-foot project at West Parmer Lane and Delcour Drive that the company has valued at more than $348 million.

The deed lists the seller of Riata Crossing North as Riata Holdings LP, doing business as Riata Austin Holdings LP. The deed was signed by John Grassi, president of Riata Holdings General Partner LLC. Grassi is president of Spear Street Capital. Grassi did not return messages left seeking comment.

Located on 28.8 acres, Riata Crossing North has an appraised value of $62.5 million, according to Travis Central Appraisal District records.

Spear Street Capital owns another office campus nearby, the eight-building Riata Corporate Park, which it recently put on the market.

Jamil Alam, a principal with Austin-based Endeavor Real Estate Group, said Apple’s purchase of Riata Crossing “makes a lot of sense.”

“Apple has piles of cash and is buying back stock, so they might as well buy some real estate that they occupy,” Alam said.

Cupertino, Calif.-based Apple is in line for incentives totaling more than $34 million from the state, city and county for locating its America Operations Center in Austin. The company is to receive $8.6 million in tax breaks from the city of Austin, $5 million to $6 million from Travis County and $21 million from the state. Apple has not yet received any incentives money from the city or from Travis County, but did get a $5.25 million incentives payment from the Texas Enterprise Fund, state records show.

The incentives were approved in 2012, contingent on the technology giant creating more than 3,600 new full-time jobs in Austin, retaining 3,100 existing jobs it had at that time, and spending at least $282 million on new buildings and equipment in Austin over a 10-year period.

As of the end of 2013, Apple had 4,091 full-time employees in Austin, excluding contract workers, according to documents filed with the city of Austin.

Apple did not respond this week to requests for its current Austin employee headcount.


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