Statewide NewsTeacher Retirement System Will Sell Downtown Austin Office for $108 Million

The sale comes after a direction change in its plan for a new headquarters two years ago.
October 6, 2022
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The largest public pension system in Texas closed with a buyer for its downtown Austin building on Red River Street for a total of $108 million.

The Teacher Retirement System (TRS) — which has 1.9 million members and oversees $201 billion in financial assets with $50 billion in unfunded liabilities — has been in the process of transitioning out of its long-held 3.8-acre property and office space in Downtown Austin, which its executives have said the agency has outgrown.

TRS’s new space in the Mueller district is under construction, and “will offer more efficient space outside of downtown Austin to better serve TRS members,” according to the agency’s release.

In February 2020, the agency signed a lease to occupy three floors in Austin’s Indeed Tower for close to half a million dollars per month. That lease sparked legislative hearings, as some were shocked by the price point; the plan was eventually scrapped.

Earlier this year, the pension system agreed to a $300 million price for two buildings in the Mueller district that will combine to establish its new headquarters. According to TRS, the new campus will have about 450,000 square feet of space.

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TRS employees will begin occupying the first building in the summer of 2023 while the second office will be move-in ready in late 2024.

There are over 1,000 TRS employees, according to the agency.

The buyer of the downtown headquarters is Austin Real Estate Acquisitions, LLC, “a subsidiary of a publicly traded real estate investment trust.”

Original estimates pegged its price between $80 and $100 million and it first went on-sale in mid-February. TRS employees will continue occupying the Red River location for two years until the Mueller campus becomes available.

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Brad Johnson

Brad Johnson is a senior reporter for The Texan and an Ohio native who graduated from the University of Cincinnati in 2017. He is an avid sports fan who most enjoys watching his favorite teams continue their title drought throughout his cognizant lifetime. In his free time, you may find Brad quoting Monty Python productions and trying to calculate the airspeed velocity of an unladen swallow.

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