Despite all of the media’s discussion of the so-called downtown Austin “condo glut,” it remains very difficult to get a new unit in a downtown highrise condo project. With 360 and the Shore essentially sold out, the market remains tight for buyers who are ready to move.

This week, however, comes good news for buyers with the opening of Brazos Place on 8th street between Brazos and Congress. Brazos Place houses 72 units in the redeveloped shell of the former Commore Perry hotel. With fewer than 12 units still available (Brazos Place Listings) ranging from a 623 SF 1/1 for a very reasonble $259,000 to a 1,399 SF 2/2 for $464,900 to a 2,745 SF 3/3 penthouse for $1.575M, Brazos Place is nearly 85% sold out and is available for immediate occupancy.

In addition, the developers have announced that they are providing incentives on some of the remaining units:

- $15,000 to $25,000 off for any contracts signed on 2-bedroom units by August 31, 2008.

- Onee year of free association dues on any one bedroom units put under contract by August 31, 2008.

Finally, the project has annonced new retail tenants. Anthony Nak and
Ana's Market are currently open. Baby Green's (salads & wraps) and
Launchpad Coworking (an internet cafe/bar) will be open by October 08.

Here are current images of the project:

Tags: news

The developer of the 290 room Hotel Van Zandt and the 55 luxury Residences at the Hotel Van Zandt have announced that they are abandoning plans for the condo portion ofthe project. Instead of a 29-story tower with hotel and condos, the developers will proceed with a scaled-back 16-story hotel on the site near the Shore in the southeast corner of downtown.

The Residences at the Hotel Van Zandt were to feature 55 units ranging in size from 1,400 to 5,200 square feet and ranging in cost from $500,000 to $2 million. As we have mentioned before, it’s a tough time to get financing for large condo projects and many of the projects that have been conceptualized but not yet broken ground may face cancellation. For buildings that are already under construction -- the Austonian, Spring, W Hotel & Residences, Four Seasons Residences, BartonPlace -- are all expected to be completed as planned.

THE ORIGINAL PLAN FOR THE HOTEL VAN ZANDT:


THE NEW PLAN FOR THE HOTEL VAN ZANDT:

Tags: news, hotel van zandt

If you a have unlimited resources, downtown living doesn’t get much nicer than the top of the Austonian. With a top-of-the-line 8,000 square foot penthouse priced at more than $8 million in what will be the tallest residential building west of the Mississippi, few projects are as ambitious as the Austonian.

At a press conference today, media were taken on a tour of the 10th floor of The Austonian, which, when finished, will serve as an urban garden complete with a 75-foot pool, fountains, private cabanas, two outdoor kitchens, two outdoor fireplaces, a secured dog park and wireless Internet.



At the event, the developers confirmed that construction of The Austonian, Austin’s tallest building and Texas’ tallest residential high rise building, is on schedule and will be completed at the pace of one floor per week. Under construction at 200 Congress in downtown Austin, the 56-story luxury high-rise condominium project is expected to be complete by early 2010. During construction of the tower, an estimated 500 cubic yards of concrete (about 55 truckloads) and 50 tons of structural steel will go into each level

Here are additional facts on the Austonian:

Height of Building: 683 feet; 56 stories

Gross Area Square Feet: 850,000

Total Residential Area Square Feet: 600,000

Total Number of Units: 188

Unit Size: 1,221 to 8,379 square feet

Shared Amenities: Over 40,000 square feet

Price Range: $559,000 to $8M+

Amenities: 24-hour concierge and security services, 24-hour valet service, housekeeping, dry cleaning and laundry services, Lobby-level retail, Secure climate controlled wine storage, Billiard room, 4 Guest suites, Private spa treatment rooms, Screening room with seating for 12, Conference room, Swimming pool, fitness center.

Tags: austonian, news

La Vista on Lavaca, an eight-story residential mixed-use tower consisting of 19 condominiums on the top four floors, a three-floor Executive Business Center, and first floor restaurant, seems to have halted construction mid-way throught the process. The project was being developed by Guerrero-McDonald.

While outside of the downtown focus of this site, La Vista on Lavaca may be an unusual mid-project catatrastrophe. Typically, projects do not break ground until they have lined-up enough sales to receive financing to support the entire construction process. The developers of La Vista on Lavaca -- which billed the project as “Downtown Living for Grown-up Texans” -- began construction after receiving a building permit and a street closure permit last April. They renewed the street closure permit once in November but failed to renew it at it’s recent anniversary.

While it is unknown why the project halted construction and whether it will resume, it appears that construction has actually been frozen for months. The developers claim that the project will be completed and that construction was to resume soon. They have not explained why it stopped for many months this winter and spring. There is also no word on how many units were actually sold and whether the buyer will receive credits or their money back for the severe construction delays.

With the interest raccumulating quickly and contracts that typically require developers to meet tight deadlines, mid-construction stoppages are extremely rare. Typically, stoppages only occur when projects run out of money or when the developer and key contractors win-up in a legal dispute.





Here is a summary from the Statesman:

Jeffee Palmer had gotten used to the inconvenience caused by construction on Lavaca Street between 17th and 18th streets, and then she started wondering what happened to it.

For almost a year, Palmer has taken a circuitous route around a part of West 17th Street that is closed at Lavaca to get to a parking garage a block from the William P. Clements State Office Building, where she works as an assistant attorney general. That part of 17th Street is a major eastbound link for several thousand state employees who work in the Stephen F. Austin, the William B. Travis, the Lyndon B. Johnson and other state buildings just to the east.

In addition to the 17th Street closure, a block of the right lane of Lavaca Street has been closed for almost a year.

The developers of La Vista on Lavaca, a luxury condominium and office project, took out a permit with the City of Austin on April 20, 2007, to close the block of 17th Street between Lavaca and Colorado streets during construction, said Jason Redfern, manager of the Right of Way Management Division in the city’s Watershed Protection and Development Review Department.

The developers paid $99,900 to the city to keep the street closed for six months, Redfern said. The permit was to have been renewed for the same fee every six months until construction was completed.

The developers renewed their street permit in November 2007 but failed to renew it in April, Redfern said.

No one in Redfern’s department knew when construction stopped, but Palmer said she has not seen anyone working at the site for months.

Martin Luther King Jr. Boulevard to the north and West 15th Street to the south are strained during rush hour, Palmer said. Impatient motorists often drive into parking garages through the exit ramps to avoid traffic, she said.

As she stood in front of the construction site Tuesday, two Department of Public Safety squad cars drove into the garage from the exit-only side.

Palmer said she began searching the Internet about three weeks ago for a phone number to call to get an answer about why the street remained closed.

An e-mail inquiry to the Public Works’ Street and Bridge Division yielded a telephone number that provided an automated message offering Palmer several options for having building permit questions answered.

“I was trying to find out what kind of animal is this that the city can close down public access indefinitely,” Palmer said. “I realized that it was going to take me too much work to find out. That’s when I got in touch with Statesman Watch.”

Until Tuesday, Redfern said, the city was not aware that the developers owed $99,900 to renew the street closure permit and didn’t know why construction had stopped.

Redfern said that he began making inquiries and that he was told that construction would resume soon. “This one is very unusual,” Redfern said. “You normally don’t see construction starting and stopping like this.”

Mary Guerrero-McDonald, one of the principals in the La Vista on Lavaca development, disputed the city’s contention that its street permits were not current.

Tags: news

If you are interested in living in a downtown condo, the best buying opportunities are often during the “Pre-Construction” process. Before a project has funding, the developer must fill at least 50% of the proposed units with prospective buyers. To do this, they often offer discounts and other incentives to draw in buyers.

Those that are willing to take the risk, and wait the longest time -- often 2-3 years -- may get the biggest reward. They get the most choice units, and often at slightly reduced prices. The risk, however, is real: If the project is never built, the buyer will get their money back but must start anew in their search for a condo. For buyers in projects like 360, the best units went quickly and at reasonable prices. Today, the project opens with no available units and a waiting list of more than 200 potential buyers whose only option will be to wait for units to hit the secondary market.

Perry Henderson published a great summary of the pre-constructions sales process in his blog which we have reprinted here:

Pre-Construction Condos: How the Process Works in downtown Austin

When you buy a home that's not built yet, there can be setbacks before you move in. Here are steps to buying a pre-construction condo

Pre-construction condos are units that have been proposed by a developer, but have not yet been built. When you purchase a pre-construction unit, you are putting money down before construction begins. Buying a pre-construction condominium can be a great opportunity, but you should proceed with caution. Because you are buying into something that does not yet exist, there is greater potential for unforeseen problems and setbacks before you move into your home. By understanding the risks and planning carefully, you can avoid complications and come out a winner.

Advantages
The main advantage to buying into a condominium development before construction starts is that you often get a lower price than if you buy when construction is complete. The reason for this is that developers typically need pre-construction sales of 50 percent to 90 percent of the units in a development before they can borrow funds to begin construction. Pre-construction condos can also get you in on the ground floor of an investment that will appreciate. The market value of pre-construction units generally increases during the one to three years it takes to build a development, so your unit may be worth more than you’ve paid for it before you set foot in the place. In addition, you can often choose from a variety of finishes and flooring options, allowing you to customize your home.

How the process works
There are several steps to buying a pre-construction condo. They can vary from developer to developer, but the basic components are:

1. Reservation agreement You give a deposit (usually between $5,000 and $10,000) to reserve the unit and set the price (although the builder can reserve the right to change the price in the contract). The deposit is held in escrow and you can cancel the agreement at any time with a full refund.

2. Condominium documents When a development is approved for construction, the developer submits condominium documents (including budgets, association rules, unit descriptions, materials and other important information) for approval by the state. Once the documents are approved, they are sent to you for review. Read them carefully to make sure that you will be comfortable living by the association rules.

3. Right of rescission Once you receive the condominium documents, you have a 15-day period to decide whether you would like to proceed into a binding contract. If you don’t, you can exercise your right of rescission and withdraw with a full refund.

4. Hard contract If you don’t withdraw, you’ll provide the balance of the required down payment, usually 15 to 20 percent of the purchase price, and sign a binding contract agreeing to purchase the condominium. You generally have seven days after that to cancel. This is your last chance to walk away with no penalty.

5. Closing When construction is nearly finished, the developer will issue you a Certificate of Occupancy. A closing date is set when you will hand over the balance of the purchase price and sign the final documents. If all goes according to plan, your closing will coincide with your move-in date, and you will be ready to enjoy your new home.

The original article can be found here.

Tags: costs, news, market analysis

Last September, Fortis Development proposed a 250-foot, 200-unit, 25-story tower on 8th street and West Avenue near downtown. Since the area is currently zoned for buildings no taller than 60 feet, the project required a zoning variance or zoning change.

This week, the developers continued to press their case to the ciry for the zoning change, proving that the project is very much alive. As part of the process, the architects have presented four design options for the city to evaluate. all design have public parks in the back facing shoal creek. In the future, a trail will run alongside the creek connecting the building directly to the hike and bike trails and Ladybird Lake.

As we have reported, this decision may be a tough one for the city council: they need to decide on the boundaries of Austin's high-rise downtown. In the projects favor, it is within two blocks of the Nokonah at 9th and Lamar, CLB's proposed 33-story super tower on 7th and Rio Grande, and another project on 6th and West. As the developer points out, it is one of very few downtown blocks free of capital view corridor restrictions.



Here are the details on the proposed project:

- 200 condos in a single 25-story tower
- Lot size is 1.2 Acres
- Proposed building size is 25 stories totalling 130,605 square feet
- The project would include 143 parking spaces
- Planned amenities include a sun deck, gardens, and public trails connecting the building to the Shpal Creek greenbelt

Here are additional details from the Austin Chronicle:

Another test of council will concerning building heights in western Downtown: The zoning case for 800 West Ave., a 1.2-acre Shoal Creek-front site at the corner of Eighth Street, returned to council for a final vote at press time. Last fall, Cypress Real Estate Advisors sought an upgrade to Central Business District zoning to build a 250-foot condo tower, to be designed by Muñoz + Albin Architec­ture and Planning. (The contested 33-story 7Rio condo tower, at nearby Seventh and Rio Grande – now on hold – won CBD from council last year.) When 800 West Ave. came before council in November, members instead approved, on first reading, Downtown Mixed Use Condi­tional Over­lay zoning, which limits height to 120 feet. But according to unhappy project neighbor Ben Procter, retiring Council Member Betty Dunkerley then encouraged a developer-friendly "pass" on height-limiting compatibility standards triggered by nearby residences – a perk of CBD, not DMU. Definitive development guidelines for this peri­pheral urban district, rich in historic homes, are due later this year in the Downtown Austin Plan.

Tags: news, zoning

Today, the City of Austin offically selected Trammell Crow, Constructive Ventures, and USAA toredevelop the six acre Green Water Treatment Plant site into a dense multi-use extention of downtown. As part of the deal, the development team will pay the city $57.9 million for the right to develeop the prime site.

With the developerselected -- Trammell Crow proposed the most dense and ambitious plan for the site -- downtown Austin is now set for it’s most radical transformation in decades. With the redevelopment of the Green Site, as many as five high-rise buildings - some as tall as 40-stories -- will be added to the Austin skyline. In addition, a new retail district will connect the 2nd street district to the Seaholm development, creating a vibrant new downtown region which will draw many more residents, workers, and visitor downtown for shopping, dining, and entertainment.



As previously reported, the Trammell Crow proposal includes the following components:

- A 350,000-square-foot hotel and a 250-unit senior assisted living facility in addition to condos, apartments, offices and retail space.

- Five public squares could accommodate as many as 2,700 people.

- 5,200 new parking spaces

- The proposal includes an Austin Car Share program, bicycle bays, and electric refueling stations

- Restoration of the downtown street grid which will ease congestion and streamlie the flow of traffic into downtown

- The proposal offers to make 25 percent of its rental units affordable--defined at 80 percent of the city's median family income--and offered to make a donation to the city's affordable housing fund for every condo it sells, estimating that total donations could reach $2.5 million.

Here is a summary from the Statesman:

The Austin City Council on Wednesday unanimously chose Trammell Crow and its partners Constructive Ventures and USAA for the single biggest development project ever to take place downtown.The group beat four other development teams to win the right to negotiate with the city to buy and transform five isolated blocks of city-owned land bounded loosely by the Seaholm Power Plant and San Antonio, Fourth and Cesar Chavez streets into a residential, commercial and cultural hub.But a city official familiar with the proposals said the Trammell Crow team offered to pay $57.9 million for the six acres appraised at $55.5 million. The official requested anonymity because the official is not authorized to speak about the unsigned deal.Of the five teams, Trammell Crow proposed the biggest and tallest buildings, the most uses and the most parking for the current sites of the Green Water Treatment Plant and Austin Energy Control Center.Two weeks ago, members of the city staff announced that they had determined that the Trammell Crow plan was the best deal for the city.Their decision was based largely on financial information the city has refused to release, including: the proposed sales price for the land, sales and property tax projections, the financial backing of the developers, and the amount of public money needed to achieve the developers' plans. City officials say the information won't be released until the city has signed a deal with the selected developer, a process that could take more than a year.

Tags: new projects, news

Star Riverside, a four building condo complex on Riverside Drive just east of I-35, has officially commenced construction on the first 2 buildings. In this first phase, two 6-story lake front buildings will contain 64 large mostly 3/3 units ranging from 1,500 to more than 2,500 square feet with prices starting at $600k. The first two buildings are expected to be completed by Summer, 2009. A second phase will add 9 and 12-story towers with units as small as 600SF and starting around $350K.



Star Riversideis being developed by Constellation Property Group on the 4 acre former site of the Wellesley Inn & Suites just East of I-35. Constellation, an Australian firm which has developed some very cool modern projects (examples), has targeted a small number of cities in the U.S. for new projects. Austin is one of their targets, and Star Riverside is the first new project to break ground.

The first phase of the project features a relatively small number (64) of large units (1,500 - 2,500) in two buildings that sit as close as the rules allow to the lake. With prices starting at $600K, or about $400 / SF, the projects are mid-priced for downtown condo units. While the architecture is interesting and the projects looks to be modern, tasteful, and well-conceived, it remain to be seen whether this price point will succeed East of I-35 and South of the lake. Pluses include direct access to the hike and bike trails, a private dock (non-motorized water craft only on Lady Bird lake) and a planned swimming pool for residents.

In addition, Star Riverside is one of the first projects to transform the shores of Riverside drive on the south side of Ladybird lake. Constellation, and four other developers, are planning to build more than 2,000 luxury condo and apartment units near the shores of Ladybird lake. With close access to downtown, the South Congress entertainment district, the lake, and the hike and bike trails, the location is highly desirable yet less expensive (theoretically) than the city core. As part of thee projects, the Hike and Bike trail is likely to be expanded to fill long missing gaps between Congress Avenue and I-35 and with Star Riverside, the trail will be extended East of I-35.

Star Riverside was scaled back from 364 units to 201 units after the City planning commission denied the developers request for an impervious cover variance. Constellation had attempted to get a variance by building green roofs that were fully landscaped. The planning commission, however, has been very strict when it comes to variances for new buildings on the shores of Lady Bird lake.

The full and updated Star Riverside Profile can be found here. And below, here are additional images and renderings of the Star Riverside project:

Tags: new projects, news

Tonight, as the lucky future owners of 430 condo units at the 360 celebrate, the building has come alive with a 44-story vertical line culminating in a lit tower that is now the tallest structure in downtown Austin.

With a waiting list of 215 units, a list equal to 50% of the actual units in the building, the 360 has been an amazing success. Novare, the developer, hit the perfect combination of early timing, a great location, and an affordably-priced units.

With a major project completed, and a long list of people waiting for affordable downtown housing, it's a good time to take stock of other activity downtown:

- With their success with 360, Novare Group is on track for their next two towers -- Block 51 & 52 -- on the site of the downtown post office and an adjacent block on 5th street just North of Republic Square. These projects will add an amazing 900 condo units in 37 and 40 floor towers which should be completed by 2012. In fact construction will begin on the 37-floor tower in as little as 60 days. Novare is looking to repeat the model for 360 with a large number of affordably-priced units. However, with increases in downtown construction costs, the new Novare projects will inevitably be more expensive than the units in 360.

- The W Hotel & Residences, Four Seasons Residences, and Austonian -- all luxury projects -- are all proceeding quite well with construction as is the upscale Spring tower next to Whole Foods.

- The 34-story 7Rio Tower (AKA "CLB Unnamed" and "7th & Rio Grande" -- this is the first time we've heard this name) has bee so quiet that we had assumed it was dead (we moved it to "Pending" many months ago). According to the developers, they are still hoping to move forward and are aiming for a ground-breaking in Fall of 2009.

- 1115 Barton Springs, which have also labeled pending, is 30% slowed and slowly moving towards the 50% mark at which point they hope to begin construction. A smaller project with very expensive units, this project may have a difficult time getting built.

- Work has been suspended at La Vista on Lavaca at 1701 Lavaca St. for unknown reasons but is supposedly set to resume soon.

- According to the Statesman, groundbreaking on The Park, an office/condominium project at 801 Barton Springs Road, has been postponed to late 2009 for zoning reasons.

- The city is moving forward with the development of Seaholm and the Green Water Treament Plant - projects which will add a large number of affordable downtown units.

Tags: market analysis, news, 360

Over the last five years, Austin has experienced an unprecedented condo building boom. With many projects underway, the first two in the current wave are nearing completion.

This week, the 44-story 360 is throwing a massive party to celebrate the building's opening. Soon after the party, the first units will open. Over the next few months, the sold out project will be fully completed and all 430 units will be occupied. In addition to selling all units, the project's waiting list remains long. Like most projects, 360 is being completed sequentially starting from the bottom and working towards the top. As the building grows taller, work begins on the interiors of the lower floors. With it's opening, 360 becomes the tallest building in Austin - surpassing the height of the Frost Bank Tower by 50 feet.

In addition, The 23-floor Shore on Davis Street in the southeast quadrant is also nearing completion. Over the last few weeks, residents have begun to move in.

With the completion of 360 and the Shore, there will be as many as 1,000 new residents living in 622 new downtown condo units. While many additional condo projects are planned -- both of these projects are essentially sold out. If you are looking for a new downtown condo unit, at this point you will likely have to wait until the next round of units hits the market in 2009. That said, there are at least 2 listings on MLS for units in the Shore and likely a few more that will hit the market soon.

Tags: 360, news

This week, five proposals were released for the redevelopment of the sweeping Green Water Treatment Plant site between Seaholm and the Second Street District.

Nestled between Whole Foods, Ladybird Lake, Seaholm, Austin Music Hall, and the 2nd Street District is the City's oldest sewage treatment plant - the Thomas C. Green Water Treatment Plant - which began purifying water from Ladybird lake in 1925. The plant covers 6 acres across 4 city blocks. In addition to using a key tract of land to process water using 1920's technology, the plant also serves to disrupt the natural grid of the city -- it stops second street at its west end and blocks Nueces and Rio Grande from reaching Cesar Chavez.

The Green site offers an incredible development opportunity. With four downtown blocks, it is a huge chunk of land. The location is perfect -- it is on the lake and adjacent to both the hot second street district and the future Seaholm multi-use development. The site is free of Capital View Corridor restrictions, although portions of the site close to the lake are limited to 45 feet in height.

The plant, which is located between Cesar Chavez and Third streets between Seaholm and San Antonio is about to be decommissioned to make way for a new development. This week, the city released basic details on five proposals for redevelopment of the site. Once complete, the new development will likely add retail, housing, and office space while filling in the missing streets on the city grid.

Here are sample renderings from each of the proposals. It's an amazing set, they provide a vision of an important new urban district near the center of downtown Austin:


Larry Speck/PIRATE DESIGN


MITHUN


CATELLUS DEVELOPMENT GRO


BOSSE AND TURNER ARCHITECTS


COTERA AND REED ARCHITECTS

No matter who wins, here are some of the changes that are likely in store for the site when construction begins in 2010 or 2011:

- About 1,000 new apartments and condominiums including many affordably-priced units. While there are many condo and apartment projects currently under construction - and a few that have been cancelled -- demand remains very strong for central, affordable units. All proposals would include more than 100 units priced to be affordable for a family earning approximately $57,000.

- Multiple high-rise towers with downtown retail and restaurant space which will expand the thriving 2nd Street District.

- Lots of office space -- an important part of the downtown mix that has been largely ignored by the current building boom.

- The various proposals include many interesting elements such as a large downtown H-E-B., a movie theater, a major bookstore, a senior assisted-living center, a waterfront park, large hotels


Here is a summary of the individual proposals from the Statesman:

The proposals made by Catellus Development, Forest City, Simmons Vedder Partners, Stratus Properties, Trammell Crow and their respective partners have some things in common. But each also has elements unique to its plan. "Each one of the five has something that is different from the others, that's distinct to that proposal," Council Member Brewster McCracken said. "It's really amazing."

Trammell Crow and partners Constructive Ventures and USAA Real Estate Co. propose the biggest and tallest buildings with the most parking. Their plan also includes the most diverse uses, with space for a 350,000-square-foot hotel and a 250-unit senior assisted living facility in addition to condos, apartments, offices and retail businesses. Five public gathering spaces could accommodate as many as 2,700 people.

Stratus Properties' proposal includes a two-story H-E-B grocery store, with H.E. Butt Grocery Co. serving as a limited partner in the project.

"We think H-E-B being a full-service grocery store is something everybody can afford, it helps every one of those retailers in the area and it makes residential more viable," said the team's attorney, Steve Drenner.

A movie theater and bookstore would also help drive more traffic to the Second Street retail district.

Stratus and partner AMLI Residential are proposing the largest number of rental units, which they say would let them offer housing in a greater range of prices, and they plan to offer medical office space not found downtown. Canyon-Johnson Urban Fund, a partnership of Canyon Capital Realty Advisors and Magic Johnson Enterprises, is also a part of this team.

Simmons Vedder proposes a waterfront art park and four bridges over Shoal Creek, including two for pedestrians only.

This team, which includes Cotera + Reed Architects and Bury + Partners Engineering Solutions, also proposes to essentially turn the buildings into power plants by installing solar panels in the skins of its towers. It plans to use water collected from the condensation of air conditioners to flush the toilets.

Catellus Development has proposed a primarily residential project with 500,000 square feet of office space and nearly 200,000 square feet of retail. But the company is also offering to collaborate with city leaders and the community to develop a final master plan for the property that could differ significantly from its initial proposal.

"We're going to present something we think is really neat, dynamic, progressive and all of that, but with that said, if we are selected we're going to say, 'Let's go out and spend time and hear from the city what they really want and hear from stakeholders what they really want,' " Catellus President Greg Weaver said.

Forest City, which is partnering with Novare Group and Andrews Urban, emphasizes public spaces with a grand plaza at Second and Nueces streets complete with a fountain and transplanted moon tower. A grand staircase inspired by the Spanish Steps in Rome would connect the plaza to the trail along Shoal Creek, which would run from the Austin Energy site north of Third Street to Lady Bird Lake.

Tags: new projects, news, Downtown Life

Amid continuing market uncertainty, BartonPlace today announced that they have officially broken ground. With more than $45 million in earnest money on non-refundable contracts, BartonPlace is the latest project to confirm the strong market for well-conceived and affordable downtown housing.

BartonPlace, a 270 unit condo project on Barton Springs Road, includes one, two, and three bedroom units starting at $263,000 for 683 feet. With a prime location close to downtown and next to Barton Springs pool and park, the project will is in a great location and well priced. As we have seen with many of the downtown projects, the lower the price, the higher the demand. Projects like 360 with many units under $400K have sold very quickly. With construction underway, the project is expected to be ready for occupancy in late 2009.



Here is a summary from the Austin Business Journal:

A ceremonial groundbreaking was held today for the 270-unit BartonPlace condo project on Barton Springs Road.Constructive Ventures, the Austin-based group behind such developments as The Pedernales, 2124 and Saltillo Lofts, is developing BartonPlace in conjunction with local restaurateur Rick Engel. The project is going up near Engel's Austin Java restaurant on Barton Springs.Construction on the project designed by Dallas-based Boka Powell is expected to take 18 to 22 months.Perry Lorenz, one of the partners of Constructive Ventures, says the company has already collected $45 million in non-refundable earnest money contracts for units in the development."Our robust pre-construction sales show clearly that the condominium market in Austin remains very strong," says Lorenz. "The bottom line is that this is a great location in a solid market, and our team has the proven ability to deliver a unique, high-quality product here. BartonPlace will be a distinctively cool new Austin address."

Tags: new projects, barton springs, news

Last week, the city approved a master plan for the redevelopment of the Seaholm Power Plant site on Cesar Chavez near Lamar. The $117.2 million project, a partnership between the city and Southwest Strategies, will result in a 22-story hotel, 60 condo units, and 180,000 square feet of retail and commercial space. Between the initial proposal and final draft, the condo portion of the project was reduced from 80 units to 60 units.

,

The 150,000-square-foot decommissioned power plant will be the centerpiece of the 7.8-acre property across Cesar Chavez Street from Lady Bird Lake. With offices, extensive retail, and more than 3 acres of open space, Seaholm will further shift the heart of downtown to the west. While downtown life used to center around 6th street between Congress and red river, the warehouse district, 2nd street district, and Whole Foods have shifted the balance. With Seaholm, the downtown action will increasingly be centered between Congress, Lamar, 5th, and Town Lake.

The most exciting part of the project is the redevelopment of the Seaholm facility itself. When complete, the art deco structure will include nearly 100,000 square feet of retail and restaurants. Construction will 2009, with the final project completed in 2011.





Here is a summary from the Statesman:

The Austin City Council approved the master development agreement for the $117.2 million Seaholm mixed-use redevelopment project today.The agreement says the development group Seaholm Power LLP, led by Southwest Strategies Inc., will pay $98.6 million or 84 percent of the cost of the project, while the city will pay $18.6 million. The redevelopment plan calls for a 22-story hotel, 60 condo units, 130,000 square feet of office space and 50,000 square feet of retail and commercial space. The 150,000-square-foot decommissioned power plant will be the centerpiece of the 7.8-acre property across Cesar Chavez Street from Lady Bird Lake.The city's contribution to the project, which will be raised through property and sales tax revenues, would pay for street and utility improvements, public parks and a parking garage. The city will continue to own the renovated Seaholm Power Plant.

Tags: new projects, news, seaholm

Congress Avenue was always meant to be the heart of Austin. Over the last 40 years, it's destiny as a retail center seems to have slowly slipped away. When the new Marriott replaces Tesoros Trading Company, very little retail will remain.

Today, however, Patagonia -- the upscale outdoor clothing company -- announced that it will open it's first store in Texas in a historic downtown building located between 3rd and 4th street on Congress Avenue. This is a bold move for the company and it is great news for Austin. With the opening of a new destination store, the Patagonia announcement should lead more businesses to follow with a Congress Avenue presence.

Prior to 1960, Congress avenue was the center of retail and commerce for the City of Austin. Over the last 5 decades, Congress Avenue has been in a steady state of decline as city residents increasingly looked to suburbs for shopping and commerce. Today, there are only 13 retail business on the prime central stretch between the Capital and the lake. While a handful of restaurants continue to survive, Congress avenue storefronts are more likely to be vacant or filled with offices than utilized for retail or cultural purposes. With the opening of the Austonoan, the Patagonia Store, the new Arthouse and the redevelopment the historic Yaring's department store on Congress between 5th and 6th into retail and commercial space, there is once again hope that the former glory of our most prominent thoroughfare may be restored.

Here is a summary from the Statesman:

Patagonia, the Ventura, Calif. active clothing and equipment retailer, plans to open its first Texas store at 316 Congress this fall. The 7,000-square-foot store will be the company's 25th location and will carry outdoor sports and lifestyle products tailored to Austin outdoor activities like trail running, bouldering, paddling and hiking/trekking.The store will open in the historic W.B. Smith Building. The company says it chose Austin as the location for its first foray into the Lonestar State because of the city's reputation among the healthiest and greenest communities in the country.

Tags: news

The Austin City Council took a first step today to extend the much-loved Hike and Bike Trail surrounding Lady Bird lake to close the gap between Congress Avenue and I-35 on the south side of the lake. Currently, hikers, bikers, runners, walkers, and other trail-goers must brave the shoulders of riverside drive for more than a mile to complete this part of the loop. With the extension, the hike and bike trail will now run uninterrupted from I-35 to Mopac on both the North and South shores of Lady Bird Lake.

The Hike and Bike trail is a key downtown asset and one of the biggest selling points of downtown living. Extending the trail has been challenging as much of the land is owned and occupied by various commercial and residential projects -- some built as close as 20 feet from the lake.

With today's action, the City council has hired a firm to design a 1.1 mile boardwalk over the water to extend the trail without requiring redevelopment of existing properties. The full project is expected to cost $10 - $15 million to complete.

Development around Lady Bird Lake has stirred significant controversy over the last few decades, staring with the development of the Hyatt many years ago and continuing with a number of recent condo projects proposed for the South side of the lake. In today's meeting the city also took action to review current waterfront development guidelines.

According to the Statesman:

A 15-member task force will soon begin evaluating the city's development regulations for properties along Lady Bird Lake in an effort to eliminate inconsistent and vague rules that have frustrated developers and citizens opposing their projects.Members soon to be appointed will include a representative from the Parks and Recreation Board, the Planning Commission, the Design Commission, the Downtown Commission, the Environmental Board, Save Town Lake, the Town Lake Trails Foundation and the Real Estate Council of Austin.The City Council also will select representatives from registered neighborhood organizations with boundaries abutting Lady Bird Lake and owners of property within the affected areas.The group is scheduled to submit a public report with recommended changes by early fall, and the City Council probably will hold public hearings and vote on the recommended changes in January.

Tags: news

Outside of Austin, the health of the U.S. condo market continues to deteriorate. It's well known that many formerly hot condo markets have come upon tough times. In markets such as Fort Lauderdale and Miami where flippers would by and sell units many times before projects were completed, the meltdown has caused investors to flee, leaving the remaining owner-occupants with an oversupply of units and very few buyers.

The condo markets in Florida, Las Vegas, and other markets are very different from the market in Austin, Texas. After huge run-ups in prices, the trend has reversed, According to the Wall Street Journal, "the median condo sales price in the Cape Coral-Fort Myers area of Florida fell 26% to $202,300 in the fourth quarter of 2007 from $273,400 a year earlier. . . Prices dropped nearly 20% in Tucson, Ariz., and 12% in the Atlanta area during that time, according to National Association of Realtors data. Inside the newly minted Quantum on the Bay in Miami, prices for two-bedroom units have fallen from the high $700,000s to around $500,000."

When prices drop this quickly at the same time as new projects are nearing completion, it creates a very painful market dynamic. When a buyer puts a 10% down payment on a future unit and then sees the value of the unit fall by 20% during construction, they walk away at closing to avoid future losses. The projects, in this situation, wind-up in a very precarious situation with as many as 40% of pre-sold units failing to close. If the developers are unable to pay back the construction loans, they subsequently lose all of their capital, default on the loans, and the projects often go bankrupt.

Will this happen in Austin? The answer seems to be "no." The markets where condo prices have imploded have featured a combination of three critical factors. The first is that all home prices -- condos and single family residences -- have dropped dramatically in value. This has not happened in Austin. In fact, in 2007, prime central areas increased in value. In area 8e which covers much of Westlake, for example, prices increased by nearly 15%. The second factor is that condo projects were massively overbuilt. While many projects are planned in Austin, not all will be constructed. The ones that do make it to the market -- while adding lots of downtown units by historical standards -- represent a miniscule percentage of Austin housing units. In fact, the 700+ downtown units that will be completed in 2008 are essentially sold out at this point.

The third major factor in the national meltdown is the current credit crunch. Today, there are few good options for people with poor credit, first-time home buyers who want to make small down payments, and anybody who needs a jumbo or interest-only loan. These trends effect us here in Austin in the same way they effect the national market. This is the primary reason that the Austin market has slowed down and price appreciation has paused in spite of a strong local economy and string regional job growth.

According to the Wall Street Journal, one of the big problems has been that developers in other cities started too many projects before the bust and failed to cancel or convert projects under construction to another use -- as rental units, for example. In Austin, virtually every project that started constrcution before the summer credit crisis is now sold out. Every project started after the crisis has been required to meet a very stringent bar for pre-sales. While no market is 100% safe -- Austin seems to be in excellent shape in comparison to many other major condo markets.



Hear is a summary from the Wall Street Journal (see the article here - subscription required):

It may seem surprising that anyone would want to add supply to a market whose troubles have been well-publicized for many months. But the economics of condo building encourage developers to bring half-finished projects to completion, even when prices and demand are plunging.Developers usually put up their own money for a project first, then spend borrowed funds. Once developers have spent their money and have commitments from lenders, they have a strong incentive to keep building to finish the project."These developers had millions of dollars tied up and they had them financed so they just moved forward," says J. Ronald Terwilliger, chief executive of Trammell Crow Residential, which builds many rental apartment buildings and also a few condos. "What they hope is that by the time the project is finished the market comes back."However, developers and lenders can more easily shelve projects that are still in the early stages. Many developments nationwide are being canceled, suggesting that by next year or 2010, the number of new condos coming onto the market may slow to a trickle.

Tags: market analysis, news

Arthouse, a downtown contemporary art museum located on Congress and 7th, today announced plans to remodel and expand their downtown galleries and educational facilities. According to Arthouse, "The plans -- developed by Lewis.Tsurumaki.Lewis, New York-based architects, the Board’s Building Committee and Staff -- will triple total space from 7,000 sq. ft. to 20,830 sq.ft."

Arthouse (formerly the Texas Fine Arts Association) was founded in 1911, and for more than ninety years it has advocated for the support of contemporary art in Texas, organizing exhibitions and presenting them in Austin and statewide. From its home, the Jones Center in downtown Austin, Arthouse pursues its mission: to promote the growth and appreciation of contemporary art and artists in Texas. The museum is well respected for its innovative exhibits and programs.

With the $6.6 million renovation and expansion, the project will “recycle” the current building which in the 1920’s was the Queen Theater, a key part of the Queen/Paramount/State theater “block,” and in the 1950’s became a Lerner Shops department store. Three new galleries, two artists’ studios, a 90-seat community/screening room, and a 5,500 sq. ft. rooftop space with a 33 foot x 17 foot movie screen will be added.

The highlight of the Arthouse project is the innovative architecture of the renovated structure. The striking building features randomly placed green translucent bricks, a modern awning reminiscent of the building's department store past, large glass windows including live projections on the upper floor, and a dramatic rooftop deck with an open air movie theater. The main space on the second floor also doubles as a large screening room.







The Arthouse project follows Austin Museum of Arts recent announcement of a new free-standing 40,000 square foot museum and a separate 425,000 square foot 30-story office tower on the current lot at West Fourth & Guadalupe. Together, these projects mark an exciting expansion of downtown arts options. With regular events, gallery openings, and now rooftop movies, these venues will continue to thrive as cornerstones of the emerging downtown cultural scene.

Tags: culture, Downtown Life, news

As the downtown development boom has driven downtown land and housing prices upwards, the calls have been strengthening for the City to take definitive action on affordable housing o ensure that downtown remains diverse and affordable to as a broad a segment of the population as possible. With the opportunity to control development of a huge swath of downtown land, the City is using its leverage to ensure that the project include affordable housing units.

As part of the initiative, the City is building a comprehensive affordable housing program around the large-scale development of the Green Water Treatment Plant between Seaholm and the second street district. The program has two primary components. First, to ensure that at least 10% of units are affordable to households earning less than $42,000 for a 1-2 person family (80% of the area median income), the City is reducing land prices and requiring developers that developers who want to participate in the project include affordable housing units. Second, the city will dedicate 40% of property taxes generated by the project to a housing fund which will provide subsidies to make additional units affordable.

The City plans to choose a developer in June.

Here is a summary from the Statesman:

City leaders have urged developers to build more affordable housing downtown with little success. Now, Austin plans to put its money where its mouth is with the upcoming sale and redevelopment of the Green Water Treatment Plant and nearby Austin Energy property.Blunting the developers' argument that land and building costs downtown are just too high, city officials plan to give them no choice but to include low- to moderate-priced housing in the redevelopment of the nearly four city blocks and as a result almost certainly will make less on the land sale."We're not in the business of making money," Council Member Brewster McCracken said. "We're in business to achieve public values and goals."The city also plans to directly subsidize additional units for even lower-income families and dedicate 40 percent of the property taxes generated by the redevelopment project to its affordable housing fund."I just think it's an opportunity to have much of both worlds: a lot of tax base delivered, hopefully a significant measurable one-time capital gains in the land sale and then a series of other community goals," Mayor Will Wynn said.

Tags: news, rental, affordable housing

Last April, developers announced a 4-story, 27 unit development on Barton Springs just east of Lamar adjacent to the train tracks, McDonalds, and Peter Pan Mini Golf. With pricing starting at $1,000,000, are original reaction was that "the project is a very odd combination of location and pricing that suggests a lack of experience in residential development." At the high end, the units were priced at $900 / SF making this the most expensive development in Austin.



Today we learned that ground-breaking for 1155 Barton Springs has in fact been delayed. With tough times in the credit markets, it is getting tougher to sell even the best conceived projects, While strong projects are finding success South of the river, they are succeeding by combining prime locations with prices far below those of the large downtown high-rises. 1155 Barton Springs attempted to combine ultra-luxury with a low-rise "B" grade location -- a tough sell in this market. While the views are great, top dollar projects need to be perfect, which is not the case with 1155 Barton Springs. While the project is delayed and not canceled, it is clear that the developers have a tough road ahead.

Here are additional details from the Statesman:

Groundbreaking has been delayed for the condo project called 1155 Barton Springs, which is destined to replace the long-vacant Treehouse restaurant and nightclub at Dawson and Barton Springs Road.Developers Elisabeth and Steffen Waltz and their partners had hoped to start construction on the project by the end of 2007. But yesterday, Elisabeth Waltz wrote in an email:“These times seem to call for a measured approach. It may take us a few more months to start construction; we will start when we have 50% or more of the residences sold. (Personally, having been a real estate broker for many years, I would prefer all of them pre-sold).”In addition, she said all floor plans are “custom-designed to reflect the buyers’ input and lifestyle. The reservations currently in place are the result of close cooperation between buyers, our office and the architects. This takes a bit longer that selecting a pre-designed unit but seems to really please the owners.”And having happy owners is especially important when they’ll be shelling out anywhere from $1 million to $4.3 million for the 27 units, which will range in size from 1,670 square feet to 4,500 square feet.And although it’s located next to a railroad track, the Waltzes have said the building’s concrete and sound-proofing insulation will minimize noise from the railroad. Waltz said in her email that, although she originally wanted the Treehouse building demolished as soon as possible, it actually has “proven useful.”” It gives me the opportunity to show the view from the first floor and also listen to the trains go by. Everyone is amazed on how little impact the train will have, if any. It moves very, very slowly in anticipation of the upcoming 90-degree turn across the lake.”

Tags: news

After seven years of planning and multiple iterations, the Four Seasons Residences will break ground this week. As we have seen with many of the recent downtown Austin condo projects, they are not truly real until construction begins. Having reached that milestone, the 32-story Michael Graves-designed tower is now expected to open to residents in 2010.

With 166 condo units priced from $500 - $750 per square foot and monthly condo fees of $0.61 / square foot, the Four Seasons Residences represents an ambitious super-luxury project for Austin. It was not too long ago that the Four Hotel Seasons hotel itself was almost a strange site in such a down-to-earth town. But times have changes and demand is strong. The project reports that they have received 10% deposits for 40% of the planned units. Interestingly enough, half of the buyers so far hail from outside of Austin -- a new twist for the emerging local high-end condo market. However, with 60% of units to sell, much work still lies ahead.

When combined with the Austonian and W, the Four Seasons Residences represents an entirely new ultra-luxury urban high-rise experience that has never existed and that will not exist in Austin until the first of these projects hits the market.



Here is a summary from the Statesman:

The Four Seasons Residences, one of downtown Austin's highest profile luxury condominium towers, will break ground this week, seven years after initial plans were thwarted by the tech bust of 2001.The newly designed 32-story tower will rise in the parking lot next to the Four Seasons Hotel overlooking Lady Bird Lake. The building's 166 residences will be priced from $400,000 to $4 million, with units from 880 to 5,500 square feet. Four Seasons will manage the building, which is expected to open in the first quarter of 2010 and become a landmark on the evolving skyline.The $125 million project is a venture between local developers Ardent Residential and Atlanta-based Post Properties Inc, the financier. Michael Graves & Associates Inc. designed the tower, which will have a terra cotta-colored brick base that will blend with the hotel, developers say.The first major sign of construction will come later this week when crews begin demolishing the hotel's 123-space surface parking, which will be redirected to an underground garage. The new tower will include five levels of above-ground parking.The construction entrance and staging area will be on Trinity Street to minimize disruption for the hotel, said Art Carpenter, a principal with Ardent Residential.

Tags: new projects, news, four seasons

The 2nd Street district is quickly becoming the heart of Austin. Even with just one real city-like block, the 2nd street district is full of life and energy --- both during the day and during the night.

One of the reasons for the success of the 2nd Street district is the centralized leasing strategy which groups all 44 retail locations in AMLI downtown, the CSC building, the Silicon Labs Building, and in City Hal under the control of a central leasing authority currently managed by AMLl. By centrally managing leasing, the district has been able to limit chain businesses while building a diverse collection of retail stores and restaurants that bring life to the neighborhood. As the district grows in size, it show only become stronger.

With the coming completion of the AMLI on 2nd rental tower between San Antonio & Guadalupe, a number of new businesses are soon to open on 2nd Street and in the surrounding blocks that form the district.


IMAGE: New AMLI on 2nd Tower Extends the 2nd Street District

The completion of the AMLI tower will bring 11 new retail businesses while bringing new life to the 7 businesses in the Silicon Labs building across the street. So far, 7 out of the 11 new retail locations in the AMLI Tower have been leased. They include the following new business which will soon appear on 2nd street. in fact, a couple—such as St. Bernard Sports—have already opened. The new 2nd Street businesses include:

- Z Pizza - An new downtown pizza restaurant
- Málaga - A Tapas restaurant which is moving from 4th street
- Minx
- La Condesa
- Kirk Furniture - A local vintage furniture store
- St. Bernard Sports - A Sporting Goods Store on 3rd street
- Dr Shane Matt -- Appears to be a dentist office

In addition, a few additional businesses are set to open soon throughout the district:

- Taste Select Wines
- Beyond Traditions Jewelry
- Mama Fu's - A local Asian Food Chain

With these additions, 42 of 55 of the retail stores in the 2nd Street District are now occupied. As new buildings such as the expansive Block 21 complex a W Hotel & Residences completed the street, the 2nd Street District will continue to shift Austin's center of gravity in its direction.

Tags: Downtown Life, news

It's been a while since Austin Towers has had the privilege of announcing and profiling a new downtown Austin condo development. Today, we are pleased to announce that Quorum Lofts, a new capital-area loft conversion project, has been announced with a target completion date of late 2008 or early 2009.

The new project will convert a 1964 office complex on 13th & Guadalupe -- 2 blocks West of the Capital -- into a dramatic modern
26-unit condo project. With the Capital-area location, the project (and the name) are targeting legislators and other Capital district employees who might be the excited by the idea of walking just a few hundred feet to work. The project is aiming for a crazy fast development timeline with delivery before the end of 2008. Although the developers hope to beat the rush of projects arriving in 2009, the deadline will be hard to reach unless they receiving zoning approval and begin construction quickly.

Units in the Quorum Lofts will be big - ranging from 1,450 to 2,450 square feet with prices starting near $500,000. The project will include a rooftop infinity pool and lots of nice features such as high 10 foot ceilings, granite counter tops,and jetted soaking tubs. We have posted a full profile here.



Here is additional information from the Austin Business Journal:

Local developer John Graham knows there are plenty of condo projects on the horizon for downtown Austin.But with most of the next set of big towers not scheduled for delivery until 2009, Graham sees big potential in bringing a development to market quicker -- and in a location just steps away from the Capitol.Graham's company, AustinPartners.net, hopes to get approval on a building permit in the next month for redevelopment of the property at 1300 Guadalupe St. The $10 million Quorum project slated for completion late next year would turn a three-story office building constructed in 1964 into modern, loft-style condos.Work is set to begin in January on the project that will add a fourth floor to the building and create 26 condos ranging in size from 1,450 square feet to 2,450 square feet and priced from $350 a s