Starwood Capital Group has completed its exit from the Austin office market by selling Cielo Center, a three-building office campus in West Lake Hills. The property, located at 1250 South Capital of Texas Highway and totaling 286,000 square feet, was acquired last week by a joint venture between Aquila Commercial and Serpa Partners, according to reporting from the Austin Business Journal.
The sale of Cielo Center marks the final transaction in Starwood’s four-property Austin portfolio that once held a combined value approaching $200 million. Earlier this year, Starwood sold The Park on Barton Creek to BH Partners in April, Encino Trace to Cross Ocean and OakPoint in August, and The Crossings at Lakeline to Continental General Holdings.
Details of the Cielo Center deal were not disclosed. However, public records assessed the property’s taxable value at $35 million or about $122 per square foot.
Aquila Managing Principal Chad Barrett confirmed the acquisition and stated that the complex is currently 86 percent leased.
For Serpa Partners, this purchase represents their first investment. Serpa Managing Partner Michael Provost said: “The campus aligns with Serpa’s focus on ‘differentiated assets in growth markets,’ pointing to a hands-on repositioning strategy the joint venture plans to deploy.”
Plans for Cielo Center include renovations to interior common areas and outdoor amenities. Aquila’s leasing team—Barrett, Max McDonald and Cody Schneider—will take over leasing responsibilities for the property.
Cielo Center is situated in Austin’s Southwest submarket near South MoPac corridor. According to Aquila data cited by the firm, vacancy rates in this area stood at 13.2 percent during the third quarter of this year—a figure notably lower than the metro-wide rate of 17.1 percent. This relative stability contrasts with broader trends as Austin’s office market continues adapting to hybrid work patterns and increased borrowing costs.
Institutional investors have been reevaluating their strategies within Austin’s office sector after years of active buying activity. Many are now shifting focus or divesting stabilized assets amid changing market conditions.
