Real Estate

Austin Medical School Courtesy of Carole Strayhorn?

Jude Galligan | March 23, 2009 |

Here is an intriguing idea courtesy of Carole Strayhorn!

1) Build a medical school, 2) enhance the medical/bio-tech industry in Austin, 3) create jobs, 4) create revenue for the city.

“This Council Spent $2.3 Billion for Biomass Energy in Nacogdoches. For less than half that cost, we could build this medical school, create $1.5 billion a year in revenue, and create 14,400 permanent jobs.”

If built in close proximity to Brackenridge, which I assume it would be, this could bring much needed life to the northeastern quadrant of downtown Austin.

Refreshingly, this makes good sense.

[link]

Downtown Austin Apartments: 404 Rio Grande

Jude Galligan | March 21, 2009 |

[youtube = http://www.youtube.com/watch?v=keuJmAFHb0o]

Continuing this week’s theme of apartment reviews…

404 Rio Grande is the oft neglected apartment complex in the core of downtown Austin. (Gmap) It doesn’t evoke the same reaction as the Monarch or AMLI on 2nd. Still, 404 Rio Grande, at the corner of West 5th and Rio Grande, has one of the best locations in downtown Austin. The rents are cheaper, too. Unlike the new high rises parking is included for you and your guests.

Don’t expect the finishes to be similar to Monarch, its next door neighbor. It would be easy to frown upon 404 Rio Grande’s faux-hardwood-laminate flooring and white appliances while paying a substantial rent. Washer and dryer are not included. Still, the loft style design of AMLI is not preferred by everyone, and 404 Rio Grande’s units are cozy – ultimately you are paying for location.

So, if your budget or desires don’t call for a 24-hour concierge or loft-like design, you might consider 404 Rio Grande. After incentives, which constantly change at every building, one-bedrooms begin around $1300 and two-bedrooms around $1900. The biggest challenge for a renter interested in 404 Rio Grande is availability. 404 Rio Grande has been fully occupied for a couple of years so, unlike the new high rises, availability depends on someone moving out.

If you are considering a move downtown, feel free to give me a call!

Jude Galligan, Downtown Austin Realtor
judegalligan [@] gmail.com
(512) 226-3414

5th Street Commons

Jude Galligan | March 18, 2009 |

[youtube=http://www.youtube.com/watch?v=0_gzpDn7SqU]

This morning the I visited the folks at 5th Street Commons. They kindly invited me for a tour of their new digs, and to discuss the incentives currently available to renters. Located on the outskirts of downtown Austin, the 150 apartments at the 5th Street Commons are sufficiently close enough to downtown to be included here.

What I like:
1) Ground floor retail and street side parking. Once fully occupied with commercial tenants this should become another walkable district.

2) Smart floor plans. At only 759/ft, the A1 plan is incredibly spacious with enough room for a dining table, kitchen island, and laundry room – without feeling cramped.

3) It’s equidistant to Whole Foods as the Sabine, and closer than Legacy on the Lake, Milago, etc.

4) Standard size washer and dryer included in all units

With advertised incentives, the rents are roughly 10-20% less than AMLI on 2nd or Monarch. Accounting for two months of free rent on a 12 month lease, one bedrooms should begin around $1300 (studios even less), two-bedrooms around $1700.

-Jude

Ashton Austin – Buzz

Jude Galligan | March 16, 2009 |

Pricing for the downtown Austin apartment building, the Ashton Austin, is available – Jude Galligan, 512-226-3414, judegalligan [@] gmail.com

Click here for complete Ashton Austin coverage.

People are wondering when the Ashton (formerly “Alta Vida”) will be ready for move in. Hanover’s 259 unit building has been an informational black hole. No pricing, no floor plans, no launch date. Nada. The lack of information keeps us intrigued!

I spoke with a contact at Hanover this morning and was able to dig up a few juicy facts.

1) There will be five penthouse units ranging from 2,527/ft – 3,218/ft
2) No three bedroom units (except for two of the five penthouses)
3) The largest suite is a 2/2.5 + study at 2,200/ft
4) At 880/ft, not including a balcony, the smallest one-bedroom is relatively large
5) Pricing has not been finalized but is expected to be at par with AMLI on 2nd
6) Level seven will feature an amenity deck (pool, fitness, lounge, etc)
7) There are three 1,550/ft live/work units (2bds/1.5ba) on the first floor featuring a garage and access from the ground level

Move in is planned for May 1st! So, we should see pricing and floor plans within 2-3 weeks. If you want to see what the finishes will resemble check out 7riverway.com

-Jude

Is Second Street a Success?

Jude Galligan | March 15, 2009 |

The ABJ poses the question. The real question is: why is retail turnover so high on Second Street?. The answer is quite simple and academic.

Income < Expenses

There you go. The worst economy in a century does not generate enough income for a boutique clothing or furniture store to thrive. Combine that with already expensive leases (in the ballpark of $32/ft NNN) and Second Street finds itself in a perfect storm for tenant default. Eventually, empty store fronts will have a snow ball effect on adjacent retailers. Landlords are loathe to lower their lease rates, but perception is often reality, and the perception of Second Street is “luxury” goods. Many marketers will tell you that “luxury” is no longer a good adjective to promote your wares.

Now, as I’ve written before, the tenant mix on Second Street, and in downtown Austin in general, is out of balance. The next wave of successful retail in Downtown Austin will be for stores offering goods and services that people can afford and need to purchase on a regular basis.

Address the tenant mix problem and Second Street will be an unquestionable success.