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The Quarter-Billion Dollar Street

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View Rainey Street District in a larger map

At last night’s Downtown Commission, the commissioners heard from representatives of Rainey Street’s high-rise HOA boards. The most salient concerns were: 1) pedestrian safety (there’s no sidewalks), 2) outdoor music venue permits (compatibility), and 3) parking (there’s not much) in the burgeoning Rainey Street District.

In seven years, the city has generated nearly a quarter-BILLION dollars in tax basis through the upzoning of Rainey Street.  Andre Suissa with American Realty Corp helped me assemble some interesting data.

Rainey Street Facts:
Number of Residential High Rises = 5
Number of Residential High Rise Doors = 857
Total Value of Residential High Rise (aka. ‘condos’) Tax Base = $238,586,516 (!!!)
Total Value of Other Privately Owned Property = $56,831,501
Total Value of City Owned Property = $70,111,541
Total Tax Base of Rainey Street District = $365,529,558

The most recent draft of the Downtown Austin Plan(released yesterday) devotes two pages to priority uses for the district.  While it is brief, the message is clear and on-the-money.  Rainey Street is not one of downtown’s two entertainment districts.  Two highlights of the DAP as it pertains to RSD: 1) Encourage new residential uses that can complement the existing, quiet neighborhood character.  2) Limit the number of cocktail uses allowed.

I’ve been devoting a lot of blog space to RSD, and there’s good reason: No other area in Austin parallels Rainey Street’s activity, specifically the type of growth we’re observing. It’s the wild west with big CBD zoning guns, feral cats, no plan, and few laws in place to keep things orderly.

Lax parking requirements for bars in CBD are precisely why you are seeing a surge in bars in RSD over other commercial uses.  [The same is true for “bar creep” we’re seeing on Congress Ave] . There was a lengthy discussion on the DC about replacing parking from the west side of Rainey Street with a pedestrian/bike safety zone.  Currently, arriving and departing customers are literally forced to walk in the middle of the street where it is a foregone conclusion that someone is going to get hurt.  Seems like a pedestrian/bicycle/handicap refuge is good idea.

-Jude

Carrob’s Cafe – Breakfast All Day Long on E.6th!

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Thanks to pal and Downtown commercial Realtor, Carl Daywood, I had opportunity to discover  a terrific new little eatery in the Sixth Street Historic-Entertainment District.  It’s called Carrob’s Cafe on Sabine, between 6th and 7th, essentially behind The Boiling Pot, where the former Texas Picnic Company was housed.

The name Carrob is derived from a combination of the owner’s first names, Carol Mitchell and Robert Barnes, a delightful couple who welcome guests with relaxed down-home friendliness, Austin style.  It’s a bright and cheerful space with large windows looking out to both Sabine and Waller Creek.

The menu is basically all-breakfast all-the-time!  And since that’s my favorite meal I couldn’t wait to dive in for a sampling.  I had a couple of excellent breakfast tacos that were served in toasted tortillas and packed with my choice of 3 ingredients from among 21 selections offered — for only $1.99 each no less!  Other options include egg platters, omelets, pancakes, biscuits & gravy and some killer-sounding breakfast burgers and club combinations.

In the drinks department, my iced mocha latte was also delicious and nicely made.  The menu has all sorts of yummy coffees, teas, lemonade and sodas.

The full menu can be viewed here with an extra click-through:  Carrob’s Menu.

For now, they are only open daytimes, 6 days a week:  7-5 Mon-Fri and 9-5 Sat; closed Sundays.  Hopefully Carrob’s will quickly build enough traffic to warrant opening on Sundays too.  And they would probably do well from midnight to 4am on Saturday and Sunday mornings if they actively promoted their existence up and down Sixth to the bar crowd to  sober up before heading to their cars.

Stop by and check ’em out with a warm welcome to the neighborhood.  I’ll add a photo or two as soon as I make it back by (which will be soon!) and remember to bring along my phone/camera.

DAB Spotlight: Live Oak Pharmacy

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There’s a new pharmacy in town… And it’s not your typical “over-the-counter” experience.

“We are a firm believer in the body-mind connection,” said Scot Maitland, co-owner of Live Oak Pharmacy. “If you feel good you are gonna be good and healthy and well. So, to be able to provide people with a unique surprise when they walk in the door, that it’s not business as usual at Live Oak Pharmacy, it’s about you.”

Live Oak Pharmacy – located on West 5th street – opened its doors in April. Maitland says it’s not just about counting pills…. It’s about being rooted in the community.

“We’ve really kind of integrated ourselves in the community because we live here; we live downtown and our customers are our neighbors,” Maitland said.

The pharmacy hosts monthly health and wellness education programs and also supports local events such as the Mamma Jamma Ride and the AIDS Walk. But what really makes the pharmacy unique are its services.

Staff at Like Oak mix medicine – also known as compounding – in order to fit the unique needs of each patient.

“Not everything works for everybody,” Maitland said. “We live in a very customized world. You can customize your own car. You can customize your home. Why not customize your medications.”

Patients might request compounding to convert solid pills into liquid form or just to add a dose of their favorite flavor.

Live Oak also has a medication take back program. Customers can bring unused medicine to be disposed of in a safe way. Since the start of the program in April, Live Oak has collected more than 275 pounds of pills.

“We’ve been big advocates of collecting those unused medications that would have otherwise gone into our water supply or into a dumpster somewhere or worse yet into the hands of the hands of our youth,” Maitland said.

At Live Oak, wellness isn’t just about your health… it’s about the wellness of the community.

Three New Building Permit Requests On Rainey Street

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I love this.

On my desk sits three simultaneous requests, from different owner/operators, for building permits on Rainey Street.

Since Rainey Street is a National Registered Historic District any improvements must pass through the Historic Landmark Commission. We knew about 86 Rainey St. That will become The Blackheart.  69 Rainey Street, according to applicant Rick McMinn, will be a food concept to serve patrons at the bars located mid-block.  92 Rainey Street is expected to become a bar, but we haven’t been able to confirm if they will also serve food or if they will operate with daytime hours.

rainey street building permit requests

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86 Rainey St
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92 Rainey St
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69 Rainey St

I-35 Makeover Construction Progress – LOOKING GOOD

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We’ve been covering the I-35 makeover for years, and it’s exciting to see it taking shape.   It’s more impressive in real life than it did as a rendered concept.  The polished inverted arches are huge – the size of these things needs to be seen up close.

I-35 Makeover, Day Perspective

Architect Phillip Reed of COTERA+REED ARCHITECTS explains to us the expected construction schedule. “…work will complete on the north block – roughly around Thanksgiving – and then start on the south block, which will complete around the middle of February.”

According to Reed, an artist is currently working on some programs for the lighting – which will be attached to the bottom of the stitches.  “When only the north block is open, it will only have a very neutral light quality, but when both blocks are open the lighting will be programmed to change,” Reed says.

Thanks to downtown Austin entrepreneur and purveyor of rave supplies, Neville Medhora @ nevblog.com, for his pics and video (taken yesterday)!

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HOLY COW: October Residential Transactions

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I’m blown away by the number of closings that occurred in October for new luxury condos in downtown Austin.  Total number of downtown Austin condo transactions in October is confirmed at 29 30 closings! Resale data shows eight resale transactions, two of which were over $1MM.  Here’s the kicker: there were a combined 21 closings at the Four Seasons Residences, Spring, and The Austonian!

I spent extra time this month confirming transaction reports at the top-tier buildings.  “Spin” was minimal and there is genuine transaction velocity.

October Highlights:

  1. two $1MM+ resale transactions (not including developer sales at top-tier buildings)
  2. The Austonian shows 30 closed units, nine in October.
  3. The Four Seasons Residences shows 43 closed units, six in October.
  4. Spring Condos closed six seven in October.
  5. DANA’s Downtown Living Tour was the biggest ever with over 1000 attendees.
  6. W Hotel is hiring its staff, and buyers with contracts are anxiously awaiting their Q1 2011 move in date

One not so bright spot in the data: the number of resale transactions is down year-to-year, from 18 in October of 2009 to just eight this past month.  The data below highlights last month’s aggregate sales statistics for MLS Area “DT”.

MLS resale statistics

Investors and economic contrarians, like me, who demand value should continue to be on the prowl for deals on downtown Austin condos by focusing on the resale market.  Especially during the winter months, increased seasonal buying power is evident.  I’m working one short sale deal right now, and I’ve targeted others for my clients.  For example, I’m tracking a 2bd/2ba at Milago that can be purchased for under $299,900 SOLD (inquire with me).

The average resale price remains steady at $294.55 per square foot, compared to $293.65 psf in October 2009.  The chart below shows downtown resale transactions.  Notice the spike in buying activity during the springtime.  Now, notice the subsequent fall off…  that’s a buying opportunity. 🙂

-Jude

MLS resale trends

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B-Cycle Demonstration @ Austin City Hall

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I’ve been an advocate for a robust bicycle sharing system since I first used BIXI system in Montreal. BIXI was how I got around the city core during my four day visit.  Recently, Minneapolis hosted a delegation of Austinites and they introduced us to their Nice Bike system. Yours truly ended up in a photo.

It’s my belief that a bike share system should be an integral part of the transit discussion.  For distances of less than 1 mile, these are cost-effective systems of getting urban-Austinites and visitors where they want to get to.  A large bike sharing network is also superb recreational amenity.

Yesterday, I was excited to visit City Hall to checkout the B-Cycle shared bicycle program demo. This system is currently in place in Denver, though it has fewer stations than the Nice Bike or BIXI system in Minneapolis and Montreal, respectively.

All of these systems use a three-geared bike that’s easy to use. The bikes include a basket and a lock. The ergonomics encourage a leisurely and comfortable ride. From the B-Cycle FAQ, we learn that fees to use the system can be specified by the city or promoter, but usually include an annual, monthly, weekly, daily and single use fees. In Denver, a 24 hour membership cost $5. This doesn’t mean you rent the bike for 24 hours. Rather, for 24 hours, you can quickly pickup/drop off bikes at any station.  The first 30 minutes are free, subsequent 30 minutes have escalating fees.

Bike sharing systems like B-Cycle market themselves as being scalable, and therefor easy to buy into. However, the utility of these systems grows along with the number of stations. A modest investment in too few stations, or poorly located stations, could result in under-adoption and quickly be the death of the system.

For a city that likes to be outside and champions a progressive pace of life, the future is bright for bike sharing in Austin.

AMLI on 2nd Retail Construction Update Pics

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Last night we snapped some pics of the construction of the mezzanine level of AMLI on 2nd’s retail space along 2nd Street. According to AMLI the deal with Violet Crown is still solid and we can expect an arthouse movie theater in the near future. It appears from the rendering that the entrance will be the staircase and elevator next to BoConcept.

-Jude

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Do UT Students Use/Care About MetroRail?

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Six months after the opening of the MetroRail… Downtown Austin Blog contributor, Nicole Sanseverino, hops on board the Red Line with an update on just how well the $110 million dollar project is doing.

The MetroRail makes its way from Leander to Downtown Austin on 32-miles of existing freight tracks.  It’s a commuter rail that runs only during peak traffic hours in the morning and evening.  UT students ride for free using their IDs.  But, some students don’t even know it exists…

“The MetroRail… I don’t know anyone who takes it,” said one UT student.

According to Cap Metro, less than one percent of the UT community take advantage of the rail. One student who lives in Round Rock says the rail is a convenient way to get to class.

“It’s quick, it’s calm, sometimes I can sleep on it. I don’t get sick like on the bus,” said UT student Anke Sanders.  But, she does wish the rail operated at other times during the day.  “If it could ran more often especially during weekends maybe to go downtown for dinner or something that’d be ideal,” Sanders said.

If the City’s proposed Mobility Bond passes in November, it will launch an effort to expand the rail. CapMetro approved mid-day service beginning in January, but doesn’t have any concrete plans to increase the actual infrastructure of the rail.

“We don’t have any immediate plans for building more. I think what people would see first would be maybe purchasing more vehicles, expanding these rail stations,” Cap Metro spokesperson Misty Whited said.

After its first six months, the MetroRail is averaging 800 riders per day, but the city of Austin and CapMetro hope that as the population increases, so will ridership.

“We think it’s a great success,” Whited said. “We’re operating very well and efficiently, we just would like to see some more riders of course, but with any new service it takes time to develop that ongoing ridership patterns that you would like to see.”

Despite some bumpy tracks near its beginning, the rail chugs along.

-Nicole