Downtown Austin Districts

Jude Galligan | February 19, 2013 | 9 Comments

More Downtown Austin Apartment & Condo Projects Emerging

It seems like almost every direction we look around downtown Austin, construction cranes are deployed, helping concrete and steel skeletons reach to the sky. Notably the JW Marriott hotel, across from the Austonian, has three cranes in place and will soon take shape. But that’s just the newly visible construction: in and around downtown Austin there’s upwards of 8 million square feet of construction planned or underway.

Sometimes we forget to look outside of the downtown core. Still, there on the far wings of downtown Austin, even more construction is (literally) on the horizon and DAB is here to give you a first look.

North Shore Lofts
More Rainey Street District development is on the way, joining the Sutton Towers, Austin Skyhouse and the (perpetually-stalled) Hotel Van Zandt. Not much is known at this point, but a new multifamily development is planned on a vacant plot of land on the north shore, next to the Holiday Inn right by I-35.

If built, the views of Lady Bird Lake would be incredible (and protected).

This site, addressed 16 North I-35, was rezoned from downtown mixed-use (DMU) to central business district (CBD) in 2005, and at the time was owned by Tom Calhoon, of Calhoon Properties.

Coming Soon: “North Shore Lofts”

West Campus Apartments
Don’t be fooled by the name, this project, at 17th and Guadalupe is not actually in “West Campus“, and is also planned to have condos. Since as long as I can remember, this area near the Dog and Duck Pub, is one of the most run-down areas remaining in downtown, with a lot of properties sitting idly in disrepair.

Last time this site was anything productive it was an Arby’s.

Hopefully, this project will spur additional redevelopment of the low-density legacy buildings all around here. A few blocks north, the UT School of Business is building a new center next to the Player’s Club, which will also expand the AT&T Conference center, which might help energize the area, too.

-Jude

Coming Soon: “West Campus Apartments”

Filed Under: austin apartments, austin condos, development, Downtown Austin lofts, condos, apartments, Rainey Street District, Real Estate

amber gugino | February 11, 2013 | 1 Comment

FLOR coming to Downtown Austin’s 2nd Street District March 7, 2013.

Looks like FLOR will be opening in downtown Austin’s 2nd Street District (209 W 2nd to be exact, where Mercury Design Studio was – they’ve now moved 2 doors down).

They’ll be opening a day before SXSW 2013 starts, just in time for the crazy crowds. We suspect they’ll do well in the area with DWR and Mercury Design Studio nearby – as well as several high-end downtown austin condos and apartment buildings, and look forward to doing a little shopping there ourselves.

Filed Under: 2nd Street District, around town, austin apartments, austin condos, austin lifestyle, austin lofts, austin neighborhoods, austin retail, downtown austin, miscellaneous, retail

Jude Galligan | February 11, 2013 | 2 Comments

Event Details for 2013 SXSW Emerging

[plug: REATX has helped dozens of companies secure a downtown venue during SXSW.]

It’s coming up to the time of year again when tech, film and music fans descend on Austin for SXSW.

With every year, SXSW seems to grow bigger and more unpredictable, but bits of information are starting to trickle in about what will be happening and where.

Here’s a quick rundown of what we know is in the works so far:

This year, Sixth Street blocks, from Brazos to I-35, will be closed to traffic for more than a week, from March 8 to March 17.
Filter Magazine has Bar 96 and Lustre Pearl for Interactive, and the Rainey Street district will be subject to police emergency closure from March 8 to March 17. (It’s rumored that Google Village will return somewhere)
East Fifth street, on the east side of I-35, will be closed from March 13 to March 17.
Pandora is setting up shop in Antones (former) space at Lavaca and Fifth again. In 2012, Pandora founder Tim Westergren kicked off a “Pandora Discovery Den” there.
VICE is back again, setting up for mayhem off the beaten path on the west side of 3rd and I-35, where a current Crossfit gym is.
Spotify is hosting an event at Cenote Coffee, which is on the east side of I-35 on Cesar Chavez.
The Carmelo’s parking lot, at Red River and Fifth, is being converted into a mega music stage for title sponsor Doritos.
Skype is planning something in the lot at 7th @ Trinity Street.
Red Bull has the parking lot fronting I-35 @ 6th Street

The Statesman also just posted a preview of what to expect from the Interactive fest, which it notes was “once a modest offshoot in the ’90s focused on multimedia” and as we all know, later gave birth to Twitter.

Twitter was buzzing with complaints from attendees last year about the clogged roads, resulting in people missing many of the panels and events they came to town for. It’s said that’s what led to the decision to divert some of that programming to Las Vegas, this August. We’ll see how it impacts this year’s events.

Traffic aside, it’s inevitable that this year’s SXSW will continue to beg the question about how much capacity there is in downtown Austin for increasingly large events, particularly amid the non-stop construction. The City recently released data that said special events, such as SXSW and the Formula One Fan Fest, grew from 108 in FY10/11 to 136 FY11/12, up 26%.

Admittedly, it is a “good” problem to have and certainly one of the perks of living in Austin, as well as a huge financial contributor on almost every level of the social ladder.

For us downtowners, this is a blessing and a curse as it impedes many of our habits and routines. But it is certainly undeniable that there is an electric charge in the air when SXSW starts rolling into town every year. It’s a combination of the perfect weather season in Austin, followed by an abundance of creative energy that reminds us why we chose to make Austin our home to begin with.

To me, that’s worth celebrating.

-Jude

Filed Under: Downtown Austin Districts Tagged With: SXSW

Jude Galligan | January 25, 2013 | 5 Comments

Why Are Prices Surging At The Railyard Condos?

[Full disclosure: I am currently listing a unit for sale at the Railyard]

The Railyard condos are unique. The two low-rise buildings sit on two of the best sites in downtown Austin, and have usually been more affordable than the newer, sexier high-rises. Part of the appeal is location: situated across from the Austin Convention Center, 100 feet from the MetroRail, one block from Congress Avenue, three blocks from competing luxury towers, the Austonian and Four Seasons. The Railyard has enviable proximity to most anything in downtown Austin.

Remember last year’s NIMBY fury over Austin’s Short Term Rental ordinance (pdf)?

You would be in good company if you assumed that all of downtown Austin’s condos and apartments were making money on STRs.

You would be wrong, though.

Downtown condos have home owners associations (HOAs). HOAs have rules, and in downtown Austin those rules are usually antagonistic to short term rentals. Breaking those rules could result in a $1000 per day fine by the HOAs. Despite the fact that the STR ordinance does not regulate apartments and condominiums, last year’s fight with the City of Austin to regulate STRs wasn’t going to impact most of us living in downtown because of these HOA rules.

The Railyard condos are very, very unique.

This past November, just a month after Austin’s new Short Term Rental ordinance took effect, an enterprising Railyard owner recognized the Railyard’s bylaws did not forbid short term rentals and put together a fund to purchase several units.

The investment rationale is simple: opening up your condo as a vacation-rental-by-owner (aka. VRBO) during SXSW, ACL, F1 (just to name just the big opportunities, not to mention conventions) can yield more rent during those events than the total rent from a typical 12 month lease! Same for Railyard owner-occupants who can lease their place out for a few nights, take a vacation, and make a couple thousand bucks.

The economics of Railyard ownership shifted overnight. Word quickly spread to the owners and a handful of Realtors. In the previous year (Nov 2011 – Nov 2012), 1bd/1ba units at the Railyard condos were trading at an average of $285/foot, and units with at least 2bd/2ba units were trading at an average of $275/foot.

Going forward, expect sale prices at the Railyard condos to be 20-25% more than last year, reflecting the new economics of embracing downtown short term rentals. Owner-occupants are getting in on the action, too.

Offering the flexibility to lease your condo on a short term basis is a privilege that makes the Railyard unique among downtown condos. This privilege has significant value.

STRs can be a win-win for owners and associations. The key is balance and monitoring the impact on residents.

The Railyard HOA is smart to approach STRs with reasonableness and attach fees to the process. These extra fees will help fund their operations, building improvements, and keep HOA dues low for homeowners. Homeowners, who are also able to capitalize on their property.

I’ll stop short of advocating that all downtown buildings should permit STRs – I don’t agree with that. However, there are several buildings that should be paying attention to what the Railyard is doing. It seems reasonable for more HOAs to experiment with loosening their STR rules, monitor the process, use the money for building improvements, and course correct as needed.

-Jude

Filed Under: austin condos, austin lofts, city council, downtown austin, Railyard District

Jude Galligan | January 4, 2013 | 8 Comments

What’s Next For Agora?

Agora is closed.

It was a rocky start and a quick ending to the sports bar on East Ave. Agora’s massive footprint, copious parking, and out-of-place architecture raised questions about what the concept would be really be. “Is it a strip club?” was an all-to-common refrain.

Turns out it really was just a sports bar, albeit one out of place in downtown Austin’s burgeoning Rainey Street neighborhood.

Perhaps the final blow to the struggling venue was last month’s decision by the City of Austin Music Division to revoke Agora’s Outdoor Music Venue permit, after receiving too many noise complaints.

What’s next? Our intel has it that the 18,000 sf CBD-zoned site is now for sale.

Agora OMV permit was revoked in December (pdf)

Filed Under: austin bars, downtown austin, Downtown Austin Districts, Rainey Street District

Jude Galligan | January 3, 2013 | 8 Comments

This Hotel Looks Just Like That Hotel

Where have I seen this rendering before?

It’s deja vu all over again!

White Lodging is losing no time getting to work on their third active hotel construction project in downtown Austin.

In late December, about three months after news leaked about the deal, planners filed a site plan and based on other documents filed at the city a clearer picture is emerging about the 300-room luxury hotel at 5th & San Jacinto, abutting the 6th Street Entertainment District.

According to city documents, the project will climb to about 20 floors, with a roof terrace, totaling 215,000 square feet.

Atlanta-based PFVS Architects Inc. are the architects of record. PFVS already has a few hotels in Austin with their stamp on them, including the Westin at the Domain and the Marriot South Austin, off of I-35. PFVS is also designing White Lodging’s other two current downtown projects. White Lodging broke ground on a JW Marriott convention hotel valued at $300 million across from the Austonian last year, which is expected to open in 2015, and is working on a 296-room Hyatt Place under construction at 3rd & San Jacinto, expected to open this year. (Note: White Lodging also runs the Residence Inn next to the Convention Center.)

What is a bit surprising is how eerily similar drawings of PFVS’s Hyatt Place project, on 3rd and San Jacinto, appears to the renderings submitted to the city for the other hotel on 5th and San Jacinto, two blocks north. They are both about 300 rooms, and though the final products will probably be different, on the drawing board there is no denying they look quite similar.

: Where have I seen this rendering before?

The 5^th Street project comes to us from no other than Harry Whittington, who in this case created a joint venture with REI Real Estate Services LLC in Carmel, Ind., and White Lodging.

Whittington told the Austin Business Journal that after being courted by many developers his family concluded that building a hotel with the veteran hospitality developers was the route to pursue. (Whittington owned the lot for a whopping 45 years and is not in the business of selling his land.)

The site had entitlements for an 8:1 floor to area ratio, and zoning was successfully changed to provide a 13:1 FAR.

Something else lacking in the design are renderings that show the the building with a 6th Street POV – arguably the most important perspective for this hotel to blend into the neighborhood fabric. Will it be a giant Plaza Lofts style flat blank wall looming over 6th Street? I know the developer has heard these concerns, but we are left wondering about the results.

Should we expect more thoughtful design from architects and developers? Absolutely.

Is this hotel better than the suface lot it’s going to replace? Absolutely.

Filed Under: 6th Street Historic & Entertainment District, austin towers and high rises, downtown austin, Downtown Austin Districts, Real Estate Tagged With: austin hotels

Jude Galligan | December 29, 2012 | 6 Comments

The Highest And Best Use of Congress Ave Retail Store Frontage Is Not CapMetro

One of the things that always seemed curious to me is how and why Capital Metro (@CapMetroATX) occupied prime square footage on a heavily trafficked part of Congress Avenue, next to Annie’s. For many years, Cap Metro occupied the first and third floor of this three-story building.

Well its lease expires this coming April, and it seems the landlord is raising the rent. As a result, Capital Metro is moving into 209 W 9th Street (southwest corner of Colorado and 9^th), which is owned by Harry Whittington. There, the transit agency is signing a 5-year $3.3 million lease on 18,800 square feet. This will allow the consolidation of two call centers – one currently housed at the 323 Congress Ave.

For years, the good energy of clear windows (“fenestration” for my fellow wonks) and ambience of Annie’s seemed to kind of get sucked way by the dark, looming, uninviting storefront of Capital Metro next door.

So what’s next for 323 Congress?

The entire building is 21,900 square feet, and features open floor layouts, ample lighting and excellent visibility to Congress Ave. According to this undated flyer from Weitzman, it appears to be listed for sale ”between $2.5 million and $7.3 million.” Or, it could be for lease $24-36/ft/yr by Cielo Realty Partners, as it’s shown on Loopnet.

I’ll be surprised if this languishes too long. Office vacancies downtown have recently fallen below 12%, according to this Dec. 11 Austin Tenant Advisors press release, which compares well to other major cities such as Atlanta which reports a 24% vacancy rate. Average lease rates for all classes are averaging around $30/square in the downtown area while landlords of Class A office properties are quoting $38/square foot, or higher.

This, in part, is being driven by a number of web/computing-based companies setting up shop downtown, which is about as a good of a thing as a city could ever hope would happen to its downtown office space. We can expect a higher and better use of our ground level retail, however.

FYI urban transit commuter: The transit store, where folks pick up passes, pocket maps and the lost & found, is also moving to the new location on 9^th Street.

Filed Under: austin small business, austin transit, Congress Avenue District, downtown austin, Downtown Austin Districts, Real Estate, retail

Jude Galligan | December 18, 2012 | 5 Comments

What’s Missing? Clues To Downtown Austin’s Next Apartment Tower

What’s missing is a clue to what might become downtown Austin’s next apartment high-rise.

Back in August we discovered the old warehouse on the corner of Trinity and Cesar Chavez had been acquired by World Class Capital Group, and quickly conceptualized into an apartment tower, with the working name of Trinity Place.

For decades, two small billboards stood at the eastern edge of the lot. If you were heading east or west on Cesar Chavez you wouldn’t have missed them. As of this week, those billboards have been taken down!

Now, WCCG would not decide to forfeit that steady billboard lease without a good reason. I speculate this is a signal that development efforts are progressing.

Trinity Place conceptual footprint – Cesar Chavez @ Trinty (pdf)

Filed Under: austin apartments, austin towers and high rises, downtown austin, Downtown Austin lofts, condos, apartments, Railyard District, Real Estate

Fred Schmidt | December 7, 2012 | Leave a Comment

Fairy Tale Themes Come to Life in 2nd Street Shop Windows

One more unique and wonderful thing to do with friends and family this holiday season…
Head on over to the 2nd Street District for another edition of the Holiday Window Walk! Twenty retail windows have been done up by design and fine arts students from our area colleges in beautiful themes on classic fairy tales. It all kicks off tomorrow, Saturday, Dec. 8th and will be up through New Year’s. Come by and join the festivities!
Here’s a nice little story on Amanda Ivarra’s blog, Miss A, that tells how this all came to be.

Filed Under: 2nd Street District, austin art, austin retail, austin small business, downtown austin

amber gugino | November 5, 2012 | 2 Comments

87 Rainey Street Downtown Austin Update: NO VA (not NOVA) to Open End of 2012 (Hopefully).

Remember that mega post I did on what’s happening on Rainey Street? In the post, I talked about 87 Rainey Street located in the Rainey Street District of Downtown Austin, and how I had not heard any updates on just what exactly was going on in that space. Well, that must have hit Brad Sorenson‘s (the head chef of the new concept, perhaps more widely known for his stint on The Next Food Network’s Star) Google Alerts, because he promptly posted a comment on the Blog saying things were still a go for the restaurant concept.

Which was great, but I wanted more info – so I emailed him and asked if we could meet. I was actually very surprised when he said okay.

So we met. Last week. And, let me just say this – the guy OOZES affability. He’s also real, real tall.

I was absolutely charmed, I will admit – but not only by him as a person, but also by what he told me about NO VA.

First off, NO VA is the name (there’s a space in between “O” and “V”, 2 words), not NOVA, as it’s previously been reported. There’s actually a cute little story behind the name, too, Brad tells me. ”No va” is what the owner of the business said when he looked at the house at 87 Rainey Street when he initially purchased it, in late 2009. He said “No va”, because, at the time, [Read more...]