Stadium Tower, a planned office complex near Austin's Q2 MLS Stadium, is on indefinite hold.
Construction on the office tower planned for a 2.9 acre site next to the stadium headquarters and home field of Major League Soccer team Austin FC had begun but was recently halted.
Los Angeles developer Kilroy Real Estate put the project in its future pipeline in a recent report filed with the Securities and Exchange Commission. The company has put the project on hold until economic conditions improve or it preleases a "substantial portion" of the building, John Kilroy said on an Oct. 26 earnings call.
Formerly called Arena Tower, the planned 493,000-square-foot office tower is at 10615 Burnet Road in the North Burnet neighborhood of North Austin. In addition to being adjacent to one of Q2 Stadium's giant parking lots, the planned tower is near the future McKalla Place Station, a stop on one of Capital Metro's commuter rail lines being built to provide greater access to Q2 and surrounding businesses.
While Kilroy announced resumption of work on the tower would be "subject to market conditions," the report did not specify indicators what those conditions would be or what kind of timing might be involved. Construction before the announced delay was limited primarily to digging a hole for its foundation.
Kilroy purchased the Stadium Tower site in March from Capella Partners for $40 million. Preleasing for the property, helmed by a team from JLL, doesn't appear to be halted.
Texas-based architecture firm Page designed the originally planned tower with 19 stories: nine floors of office space and 12 floors of parking, three of them below grade. Initial plans also include multiple outdoor terraces at the site, a 4,000-square-foot outdoor sky terrace on the 11th floor, and, tentatively, ground floor retail.
Arena Tower marked Kilroy's second foray into Austin's commercial real estate market. Its first was the 2021 purchase of downtown's 36-story, 730,000-square-foot Indeed Tower for $580 million. Page, which was also the architect of the Indeed building, recently signed a 15-year lease for 51,000 square feet of office space in the downtown building.
