WeWork’s former office building at 801 Barton Springs Road in Austin has changed ownership after entering receivership. The property was acquired by a partnership between Brick Row, based in Austin, and SomeraRoad, headquartered in New York. The transaction price was not disclosed. According to the Travis Central Appraisal District, the 90,000-square-foot building was most recently valued at $25.5 million.
The previous owners, WeWork Capital Advisors and Ivanhoe Cambridge, lost control of the property after defaulting on a $34.5 million loan last year. They had originally purchased the building for $57 million in 2019.
WeWork initially leased the entire building while it was still under construction in 2018 but renegotiated its lease during the sale to occupy only two floors. This change made about 41,000 square feet of office space available near downtown Austin.
Despite ongoing high vacancy rates in Austin’s office market, Brock Kenyon of SomeraRoad said that “801 Barton Strings Road is in a desirable location, due to its proximity to downtown and Austin’s southwest suburbs and the lack of inventory in the area.” He also noted that completing this transaction took nearly three years and that Brick Row joined as leasing manager earlier this year.
SomeraRoad has been expanding its presence in Austin. In 2023, it purchased St. Elmo Public Market at 4329 South Congress Avenue when it was still an unfinished adaptive-reuse retail project; it is now home to Pins Mechanical Company, which features duckpin bowling. Last year SomeraRoad announced plans for a new apartment complex with 230 units next to St. Elmo Public Market.
Brick Row has also increased activity locally by acquiring Quarry Oaks II from Brandywine this past June. The Northwest Austin office building at 10900 Stonelake Boulevard dates back to 1998 and underwent renovations in 2008.
