Investors Purchased Downtown Congress Avenue Office Tower
A joint venture acquired the 26-story building at 515 Congress Avenue that was most recently valued at $117 million.
Updated on Sept. 25, 2026 in Commercial
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A group including Aquila Commercial, Glendon Capital Management, and Palmatum Ventures has acquired the 26-story office tower located at 515 Congress Avenue. The building, which is currently 80 percent leased, was sold by the California-based firm KBS.
Why it matters
The sale highlights shifting valuations in the Downtown office market, as the Travis Central Appraisal District lowered the property's valuation from $150 million in 2022 to $117 million this year. The new owners have announced plans to invest in upgrades to improve the tenant experience.
The Travis Central Appraisal District valued the 268,000-square-foot tower at $117 million for 2026, down from the $150 million appraisal in 2022. While the current occupancy sits at 80 percent, approximately 25 percent of the building's square footage remains available.
The players
Aquila Commercial
A local commercial real estate firm involved in the joint venture purchase.
KBS
A California-based real estate investment firm that sold the office tower.
JLL Capital Markets
A commercial real estate services company that represented the seller.
Glendon Capital Management
An investment firm and partner in the building acquisition.
Palmatum Ventures
A venture capital firm that participated in the real estate transaction.
The details
JLL Capital Markets brokers managed the sale of the property, which was officially listed by KBS in early June 2026. The acquisition group, consisting of Aquila Commercial, Glendon Capital Management, and Palmatum Ventures, intends to enhance the building's amenities for existing and future occupants. This deal follows the group's recent activity in the region, including a property purchase in West Lake Hills during November 2025.
Timeline
2022: The property was appraised at a high of $150 million.
November 2025: Aquila and Palmatum purchased a property in West Lake Hills.
June 2026: KBS officially listed the tower for sale.
September 24, 2026: The sale of the tower was reported.
The Texas Context
This transaction continues the trend of institutional investment in Downtown commercial assets seen earlier this summer. It aligns with the July 2026 acquisition of the 405 Colorado Street tower by Hines, marking another significant shift in ownership for Austin's high-rise office inventory.
Tenants currently working in the 515 Congress Avenue building can expect upcoming capital improvements as the new owners begin renovations. The sale effectively concludes the listing period that began in June 2026.
The takeaway
This acquisition signals that while property valuations have adjusted since 2022, investors are still betting on the long-term potential of Downtown office space. Watch for future announcements from the new owners regarding the specific upgrades planned for the Congress Avenue site.
Further reading
For more updates on shifts in the local market, check out our coverage of Austin Commercial.
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