Austin Real Estate Blog

A new mixed-use project is expected to break ground in Austin in 2010. The University Park development is within walking distance of the University of Texas-Austin, and will incorporate townhomes, condominiums, and apartment residences as well as a new movie theater, medical office space, and a luxury Andaz hotel. Construction is expected to commence in the second quarter of 2010. Located on the former site of Concordia University, the development is already pre-leasing commercial space and lead developer Andy Sarwal has indicated he expects to have tenants for 90% of available space before construction is completed on this project.

University Park is centrally located within easy walking or cycling distance of many of the prime attractions of the Austin area, including the State Capitol, the downtown financial and business district, and of course the University of Texas. Onair Development has announced plans for a 120,000 square foot medical office building in University Park in close proximity to St. David’s Medical Center. The building offers significant advantages for physicians who lease office space, including an exclusive tenant equity partnership plan that provides the potential for ownership over time.

Texas Monthly has already taken up residence in University Park; an Aveda Institute salon training facility has also signed a contract and is expected to open for business sometime in mid-2010. Premiere Cinemas will offer six or seven screens in a planned 450,000 square foot mixed-use building, which will incorporate 340 apartments and additional retail outlets as well. Developer Andy Sarwal is encouraging builders in University Park to commit to green standards and LEED certification, making this development even more attractive to tenants in the Austin area.

Austin’s downtown area has fared better in the recent economic downturn than many other cities; this is due in part to the vibrant medical, solar, and green technology sectors in the Austin area. Additionally, Austin’s business-friendly policies have attracted major employers to relocate their headquarters to the area; one recent acquisition for the Austin economy is Hanger, a major manufacturer and supplier of medical prosthetics and durable medical goods.

It’s not difficult to find mixed-use developments in any large city; Austin is no exception to this. At this moment, there is a developer that wishes to add another mixed-use development near the capitol. The project is called Capitol Terrace, and it is situated on the south-west corner of 14th Street and Lavaca. There is another mixed-use development just blocks away.

downtown development with tree lined streets

The city council would need to approve a zoning change for this quarter-block development, because the proposed height of the building (12 stories, up to 163 feet tall) is higher than the maximum currently permitted in the area (120 feet).

To say that this development would have “a little of everything” would be accurate. It is projected to have 5 floors of office space, or about 61,000 square feet. It would have 30 higher-end apartments for those with business at the Capitol. That could be lobbyists, or legislators. It would have small shops such as gift shops, and a white-tablecloth restaurant. It is also slated to have 5 levels for parking, of which 2 would be under-ground levels. Currently, only one lease would be displaced by the new development.

Pedestrians would be treated to spacious, tree-lined sidewalks.

The proposed zoning change is expected to be heard on December 12, 2009. If approved, construction is expected to begin in the second quarter of 2010.

Downtown Austin is under construction. As the national commercial market continues to struggle, Austin is still a perfect spot for companies and investors. The workforce is strong here, and unemployment has stayed low despite the national increase. The city has undertaken several plans to better the area downtown for residents and businesses. The Downtown Austin Plan has five major goals, including keeping the area a competitive place in the region, and to reinvest in the public realm. To achieve its goals, Austin has become a mixed use development haven where residential and commercial properties are one in the same. The purpose of these developments is to help encourage more people to move within city limits where they will be at easier access to the steady workforce here.

One such development will be opening midsummer with a fully pre-leased property. The Capstar at Compass Plaza will be adding 115,000 square feet of residential and commercial space to W Fifth Street. This includes offices, apartments, and retail space and is the first major downtown office building since 2001. Major tenants for this building include BBV Compass Bank and Capstar Investment Partners LP. The building will also be home to Girling Healthcare Texas LP and DMX, Inc. The site was developed by Capital City Partners. There are several more mixed use developments in various stages throughout downtown. Austin’s economy and unemployment rates continue to be below the national average, making it a safer place for investing. As the city strives to maintain its place, more opportunities will arise to take advantage of all of Austin’s resources.

Austin has been a haven for many businesses, even throughout the recent economic crisis. Dell has its headquarters here. The fast population growth, technology enterprises, and proximity to colleges have made it a great city for business development. The current state of the economy, however, has put a damper on planned building for 2009.

Mixed used properties are the most recent addition to the downtown Austin skyline. There remains demand for apartment space as well as commercial in this area. With an increase in supplies for building at lower rates has only helped in these developments. Unfortunately, it appears that the demand is not as high as originally expected. Many mixed use and commercial properties are being built without pre-leasing. There are many buildings that sit vacant in Austin. Experts blame the same factors that have drawn people here for the current crisis. Apartments have been in high demand here based on local college. The tech boom brought many new employees to the area in the last several years and while the population is expected to continue its increase, less people are able to move now with the credit crunch. Many developers have put construction projects on hold as they wait for the economy to steady.

Austin is still expected to come out of the recession in better condition than many other cities. Unemployment rates here remain lower than the national average, and it is still considered a good investment city for many businesses. The economy is expected to get better here by 2010.

The Dallas based Trammell Crow Co. is heading a partnership to redevelop the five block area between Second Street and the Seaholm Power Plant and includes the Green Water Treatment Plant, right smack in the center of downtown Austin. Joining the partnership is Constructive Ventures Inc., based in Austin, and USAA Real Estate Company, from San Antonio.

This all-Texas team is looking at an ambitious project that will include 2.6 million square feet of office and retail space, for sale and for rent residential units, hotel and public spaces, as well as parking garage areas that will offer spaces for Austin Car Share and electric car recharge stations.

The partnership proposes major community improvements such as $500,000 toward improvements to Shoal Creek and a grant of public easement for completion of the trail running between Fourth and Fifth Streets. A pedestrian bridge is planned over Shoal Creek to connect the site with the Second Street District. Twenty-five percent of the rental residential units will be made affordable to lower income families. In addition, the group plans to fund public art and music programs and will create an endowment to fund a lunch time music series.

The project includes plans for local retail making up a bulk of the space in the Green Water Treatment Plant and Austin Energy sites. And the icing on this cake is that the firms are aiming for a sky high LEED Gold status for all the buildings, with designs that will reduce energy use up to 50 percent.

Construction is expected to begin in 2009.

An old abandoned car lot alongside a shabby, garbage strewn creek was transformed into 14 floors of luxury apartments, a project completed in 2004 by CLB Partners. Austin City Lofts, located at 800 W. Fifth Street, brought much needed living and retail space to the Central Business District of downtown Austin and converted an eyesore into a beautiful and distinctive looking high-rise building.

The first four floors of the building contain parking, retail space, a residential lobby and management offices as well as eight apartments overlooking Shoal Creek. The next five floors feature 54 apartments with 12 foot ceilings, and the final floors contain the loft apartments, with 20 foot high ceilings, including 20 two story loft-style homes.

All told, the building houses 82 one, two, and three bedroom apartments, between 1009 and 3049 square feet, with prices running between $325,000 and $1,300,000. The features include balconies overlooking views of the city, hardwood and exposed concrete floors, granite counter tops, and whirlpool tubs. There is 24 hour security, a pool, a gym, and private parking.

The exterior was designed by Larry Speck of Page Sutherland Page Architects of Austin. It features copper shingles and native limestone. Outdoor entertainment areas include a lap pool and spa, a fire pit, and community cooking area. Inside, the kitchens feature Jenn-Air appliances and European style cabinetry, as well as Moen faucets. Bathrooms boast over-sized showers and granite counters, along with the whirlpool tubs.

Austin City Lofts is conveniently located near Austin’s vibrant night life on 6^th Street, and within two blocks of retail and restaurant establishments, clothing shops and boutiques. Just across the creek are more retail and restaurant places and a 12 screen movie theater.