State Farm sells Austin office for $110M

AUSTIN – State Farm has sold its Class A, 448,898-sf office building, located at 8900 Amber Glen Blvd. near Parmer Ln. and SH 45., for $110 million. The sale includes an agreement to lease the property back for 15 years, with two five-year renewal options.

State Farm employs 1,439 in its North Austin office building, which was built in 1994.

The move is part of a larger leaseback strategy for State Farm, which will put on the market 23 buildings in 18 locations across the United States. The deal in Austin will not affect the day-to-day operations at the office or employees, said Patti Kelly, a spokesperson for the insurance company.

W. P. Carey Inc., a New York-based independent equity REIT, purchased the property.

"In addition to being a Class A office building with a prime location in one of the country’s top economic preforming areas, it’s leased to State Farm, which is a AA credit rated tenant," said a spokesperson for W. P. Carey.