Last week's big announcement was that two fifty story tourers could rise in the warehouse district. According to the statesman, The Sutton Co. wants to build the project on about two acres it has under contract bounded by Rainey and Driskill streets and East Avenue. The development would continue the transformation of a part of downtown where a new nightlife scene has emerged with the addition of numerous bars and restaurants. Together, the towers could have as many as 800 to 1,000 apartment and condominium units, along with hotel rooms in the first tower to break ground, said Mac Pike, a principal — along with Wally Scott — in the Sutton Co. The first tower, which Pike estimated would cost $75 million to $100 million to build, is at least a year to 18 months from breaking ground and would require a number of city approvals, he said.
It's key to note that financing has not been secured for the very ambitious project In addition, the project would require approval from the city's Historic Landmark Commission to knock down the houses on the site. It would also likely require additional special exemptions to build a project that tall on the Rainey street site. The developer does have a strong track record in the City "having converted older buildings into the Brazos Lofts in 1999, the Avenue Lofts in 2000 and, later, co-developing the Plaza Lofts, a new condo high-rise built in the early 2000s."
Two Towers Proposed for the Rainey Street Neighborhood
The new 23-story tower will rise in the rapidly transforming Rainey Street neighborhood on a long-narrow site directly east of Milago and north of Legacy on Town Lake. The new project is likely to extensively block the views of residents in both units -- especially residents on the East side of Milago.
The project, to be named SkyHouse Austin, will be enormous, adding 320 apartments to the Rainey Street district. The development will also contain ground floor retail and restaurant space. The project will be designed by Atlanta-based Smallwood Reynolds Stewart Stewart Associations Inc.
Hopefully, the project will bring much-needed public-parking to the increasingly popular bar and restaurant district. Rainey street is one of the few corners of downtown that doesn't have a surplus of parking.
According to the developer, rents are expected to range from $1,330 to $6,930 (average rent will be $2,298) for units that range in size from 659 square feet to 2,876 square feet. I'm not sure how many people are looking for a $7K / month for a 2,900SF rental unit, but I am very curious to find out.
Here is the summary from the Statesman:
Construction has started on Legacy@Town Lake, a 31-story luxury apartment tower that is the latest high-rise to break ground amid downtown Austin's residential building boom. . . Legacy Partners Residential Development Inc., based in Foster City, Calif., is building the 187-unit project at Rainey and Cummings streets. . . Construction has started on Legacy@Town Lake, a 31-story luxury apartment tower that is the latest high-rise to break ground amid downtown Austin's residential building boom. Legacy Partners Residential Development Inc., based in Foster City, Calif., is building the 187-unit project at Rainey and Cummings streets. . . Legacy@Town Lake is due to open in September 2008, said Spencer Stuart Jr., a senior vice president and partner. . . The project will include a 265-car garage. . . Other apartment projects under construction downtown include AMLI Residential Properties Trust's 18-story, 232-unit complex on Second Street between Guadalupe and San Antonio streets, and Phoenix Property Co.'s complex at the former Goodwill site near West Fifth Street and North Lamar Boulevard. In addition, several condominium towers are under way, with scores more planned in and around downtown.
How does it look? Needless to say, the rental projects in Austin are rarely as architecturally interesting as the major condo projects. This project is no exception. In fact, it almost looks as if the garage is falling over.
Thirteen prime acres in the Rainey street neighborhood - the district between Red River and I-35 south of Cesar Chavez - are for sale in one of the largest downtown real estate offerings ever. The owners who assembled 20+ individual parcels including a large section along the lake are hoping that a master developer will purchase the land for dense multi-use development.
This would make sense as there are already multiple projects under way in the area including the Hotel Van Zandt. Shore Condos, the Mexican American Cultural Center, and the recently completed Milago condominiums. The area was recently rezoned for dense development and is a prime location for residential and hotel development. Additional retail, commercial, and entertainment projects would extend the traditional downtown boundaries and accelerate the shifting center of gravity further to the south.
The land is particularly attractive because the entire Rainey Street neighborhood is outside of existing Capital View Corridors that limit development. With the new zoning, it is a prime area for tall and dense new construction. However, a number of single family house owners continue to hold on to their parcels and may fight future requests for variances, which may add risk to the purchase and for any buyer who is looking to create a larger "master planned" district in the mold of the successful 2nd street district to the West.