Canyon Creek Acquires One Eleven Congress for $208 Million in Downtown Austin Office Deal

Canyon Creek has acquired One Eleven Congress, a 30-story Class A office tower in the heart of Downtown Austin, for approximately $208 million, the firm announced August 24, 2026. The transaction gives the Fort Worth-based investment and development firm a 519,653-square-foot institutional asset at 111 Congress Avenue — one of downtown Austin's taller high-rise towers — operating at more than 90% occupancy at the time of closing.

The seller was Cousins Properties (NYSE: CUZ), the Atlanta-based office REIT, which was represented in the disposition by Eastdil Secured. The deal closed in late July 2026, with Canyon Creek's announcement following in late August. Cousins Properties applied proceeds from the sale toward its acquisition of 300 South Tryon in Charlotte, a transaction valued at approximately $317.5 million, making the One Eleven Congress disposition part of a broader capital recycling strategy by the public REIT.

Asset Overview and Transaction Pricing

One Eleven Congress was originally built in 1985 and underwent a major renovation around 2020. The tower sits on approximately three acres encompassing roughly 1.5 downtown blocks, with a typical floor plate of approximately 17,790 square feet across its 30 stories. The property carries a Class A designation and has been marketed as a modernized asset following its renovation, with multiple suites available in move-in-ready condition.

At a sale price of approximately $208 million, the deal implies pricing of roughly $401 per square foot. That figure reflects the continued ability of stabilized, trophy-quality CBD assets to command institutional pricing even as Austin's broader downtown office market contends with elevated vacancy. Austin's CBD office inventory totals approximately 13.3 million square feet, with Class A vacancy in the submarket running above 30% as of mid-2026 — a backdrop that makes One Eleven Congress's 90%-plus occupancy rate a notable characteristic of the asset.

Tenant Roster and Income Profile

Canyon Creek described the property as a stabilized institutional asset with a diversified tenant base spanning the legal, financial, consulting, and healthcare sectors. The firm emphasized limited exposure to speculative technology tenants — a meaningful distinction in Austin, where tech-sector volatility has contributed to elevated vacancy across much of the downtown market.

Tenants at the property include law firms BakerHostetler, Bracewell, Fish & Richardson, and Husch Blackwell, along with Fareground, the ground-floor food hall and public gathering space integrated into the tower's plaza. Canyon Creek cited contractual rent growth and future lease-up opportunities as additional sources of upside beyond the property's current income stream.

The firm noted that One Eleven Congress has a track record of outperforming many downtown Austin assets through multiple market cycles, a characteristic it attributed in part to the property's tenant composition and limited speculative exposure.

Canyon Creek's Value-Add Plans and Development Optionality

Canyon Creek is pursuing a value-add investment strategy at the property, with plans to invest in both interior and exterior spaces. The firm's stated focus includes reinvigorating Fareground, the ground-level food hall that has helped position the tower as a lifestyle-oriented, mixed-use office environment.

"We're excited to invest in the interior and exterior spaces of 111 Congress and bring new energy to Fareground, while preserving what makes it such a unique gathering place," said Ben Stephens of Canyon Creek.

The acquisition also includes optionality for future development on the northeast corner of the site, which Canyon Creek identified as a potential source of additional value creation and income diversification. Specific development plans or timelines for that portion of the site were not announced.

Austin Market Context

One Eleven Congress is located along Congress Avenue in Austin's central business district, surrounded by the 2nd Street retail corridor, the Four Seasons Hotel, the Marriott International, the Rainey Street District, and the site of the $1.6 billion Austin Convention Center redevelopment. Canyon Creek cited Austin's position among the nation's leading markets for projected job growth and corporate headquarter relocations since 2018 as part of the rationale for the acquisition.

Direct Class A asking rents in Austin's CBD are in the low-to-mid $60s per square foot on a full-service equivalent basis, with quarterly absorption fluctuating based on move-outs and large tenant transactions. Class A vacancy increased modestly quarter-over-quarter in the second quarter of 2026 but remains below its early-2025 peak, suggesting the submarket is in an early phase of stabilization rather than recovery.

Canyon Creek is a commercial real estate investment and development firm headquartered at 100 Lexington Street, Suite 050, in Fort Worth, Texas. The firm focuses on acquiring, managing, and optimizing assets across Texas and high-growth regional markets.

Sources

• Canyon Creek Real Estate — Official Announcement