Downtown Austin Blog

downtown Austin's real estate and neighborhood blog

DAB EXCLUSIVE: First Look at Broadstone On The Lake (former RunTex store)

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Cities evolve.  Few quite as visibly as Austin over the past couple of decades.

We’ve got the first look at what’s coming to the site of the former RunTex store at S. 1st and Riverside Drive.  Demo permits were approved last month, and fencing has been erected around the site.

In its place, a six-story cousin (some might say “clone”) of The Crescent apartments – just down the street – is planned, called “Broadstone on the Lake.” It will feature 119 affordable units and 207 market rate ones, for a grand total of 326 apartments, according to city records.

The building is being designed by Kelly Grossman Architects, who designed the Hill Country Galleria, The Crescent and 404 Rio Grande.

Broadstone on the Lake rendering3
Broadstone on the Lake, Elevation Drawings

I’m not going to lie. While I’m thrilled about packing in some more density into the core, I’m pretty “meh” about the whole faux-urban motif of the design.  Some might say that level of design is better suited for a series of outlet malls in San Marcos.  But, let’s remember that the Broadstone apartment housing brand, much like the Millennium apartment housing brand coming to Rainey Street, is a national chain of apartment complexes, and it is what it is.

Thankfully, The Catherine – a 19-story, $68 million, 300-unit residential tower beginning to be constructed next door – has some design panache.  Formerly nick-named “StreetLights at Barton Springs” that building is next iteration of the Aquaterra condominium project, which fell victim to the lending withdraw of the 2008 recession.

(Also, also… the Hyatt Town Lake is removing a substantial amount of surface parking, and building a seven-story parking garage and ballroom behind the Sherry Matthews building. Austin Towers profiled the development there this past February.)

A note about RunTex

Although RunTex was a tenant and was going to get booted anyway, the poetic tragedy of the demolition coinciding with the apparent troubles of the RunTex business and brand is too dramatic to not mention here.

RunTex was founded 25 years ago, and as a fellow entrepreneur who knows about blood and sweat in pursuit of a dream, I can’t help but feel a twinge of sadness for all the people whose lives are intertwined with the bricks and pavement about to be wiped from the earth there.

It is important, though, to note that I used the word “evolve” in the first sentence of this post.  Change isn’t easy, but the development of the site is a natural and healthy evolution for downtown Austin.

Lets Hug It Out: Rainey Street Traffic

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With the increasing amount of construction happening in the Rainey Street District, I think we have seen the last of the Google Villages and such taking the neighborhood over – at least for a while.

I’m going to lay out a summary of the transportation plan here first, then drop my two cents in the bucket on the drama surrounding it.

What to expect

City staff have settled on maintaining two-way traffic on the street, and adding sidewalks where there is not existing development taking place. The east side of the street will retain on-street, metered parking, while the west side (on the right side if you are facing the river) will be converted into a striped area with pedicab pick-ups and bike parking.

Once the sidewalks are built out, the city may move forward with converting that striped area into bike lanes.

The city will convert the turning circle into a “modern roundabout” – like this one at Rio Grande and 10th Street.  The city also plans to install speed humps (not speed bumps) and up the ante on the navigational signs in and around the area.

[Read more…] about Lets Hug It Out: Rainey Street Traffic

By The Numbers: Downtown’s Shrinking Inventory

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The data supports what we all see – demand exceeds supply for downtown condos, especially dwellings priced under $500,000.  May was the first month ever that both the average and median price per foot for a downtown resale was over $400/ft.

At the extremes, asking prices for new construction high-luxury condos are approaching $1000 per foot, and there are several recently recorded transactions between $700-$800 per square foot.

Downtown condo inventory as of 6/7/2013

1) total resales available = 49
2) total new construction available = 77 est.

As of this post, there are only 13 units for sale under $500,000, and built within the past 15 years, in all of downtown Austin.  This leaves us with just over one month of inventory available for the largest segment of condo buyers in downtown’s core.

The lack of new product in the market is putting significant upward pricing pressure on resales.  With no new condo development planned in downtown, as interest rates remain low, resale prices will continue to rise to meet the demand.

DT Resale Chart - May TTM - MaxMin

You’ll recall that back in January, for the first time, the average sales price of a new construction downtown condo exceeded, $1,000,000.  There were 14 closings in May for new construction condos: the Austonian, W Hotel, and Four Seasons Residences.  Spring is sold out.  [UPDATE: The Four Seasons is sold out, with contracts pending.]  The W and Four Seasons could officially be sold out after another couple months of sales and pending contracts close.  The Austonian has a pretty good inventory remaining, but soon lacking any competition sales could accelerate quickly.

May 2013 Resale Statistics

- Total sales volume (resales only) =  $12,717,900
- # of resale transactions = 22
- avg price per foot = $453
- median price per foot = $424
- avg sales price = $578,086
- avg sales price to list price (SP/LP) = 97%
- avg condo size = 1275 sq. ft.
- avg price per bedroom = $343,727
- avg days on market (DOM) = 43 days

May 2013 New Construction Statistics

- # of new construction transactions = 14
- avg price per foot = $700-$800/ft est.
- Total new construction sales volume =  not reported

[table id=33 /]

DT Resale Chart - May TTM

Downtown News & Rumor Roundup

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There’s been a smattering of interesting dining news recently:

1)     The original Opal Divine’s on West Sixth Street will close on May 31st. They are currently working on a deal in the downtown area for a 5400-square-foot new Opal Divine’s. Look for an announcement soon on the exact location. Projected opening date is June 2014. (Dear lord, please don’t let another ‘effing steakhouse move in to Opal’s soon-to-be vacant space.)

2)     Memphis-based Gus’s Fried Chicken is moving into the Mongolian Grill spot, on San Jacinto and Second Street. This little stretch of downtown has consistently had well-intentioned people (Hank’s Garage, anyone) fail horribly on the stretch, but who knows… Americans love chicken.

3)     Dallas-based TexMex eatery Uncle Julio’s is setting up shop on the ground floor of the Whitley. By the look of the recent press releases the chain has issued, Austin is just one stop on Uncle Julio’s rapid expansion across America.

Austin homeless arrests present quagmire

Austin, with its warm weather and generally liberal leanings, have always been a home to a large transient and homeless population.

However, new data released by the city, in response to a request from Council Member Chris Riley, shows that for the first seven months of FY 2013, there have been more homeless-related downtown community court cases than in all of FY 2012. In addition, just about half of the cases originate from repeat offenders.

According to the city, the Austin Police Department began executing public order initiatives in fall 2012 – coincidentally, right about the time it rolled out the red carpet for Formula One – which has resulted in the problem offender population receiving many new charges, mostly related to City Ordinance violations, such as Camping in Public.

So says the city: “Unfortunately, there are extremely limited options in finding permanent supportive housing for problem offenders with extensive criminal histories. Without options for permanently housing these individuals, they will continue to receive new cases, further limiting their chances for acquiring housing.”

Go to the source here (PDF)

Council hands $2M to event promoters

The city is revamping its Special Events Ordinance, and a topic that keeps floating around the downtown neighborhood crowd is how much in fees City Council is waiving for these events.

Council Member Laura Morrison asked and got the answer: $2 million from the beginning of FY 2012 through FY 2013 year-to-date. These fees, from what I understand, are related to the costs of having traffic and public safety staff working on events and plans in place.

Not surprising, SXSW is granted the lion’s share, about a half million in waived fees.

I’m sure a lot of these organizations that are receiving waivers are fulfilling charity missions, but I’d be curious to know if the City Council ever asks for, or audits after the fact, how much of the profit generated by these events actually goes to a charity.

Go to the source here (PDF, hat tip to InFact Daily, which reported this this week. They are behind a pay wall, so no link guys.)

I got married!!!

After eight wonderful years, my longtime girlfriend- who is also the backbone of my real estate business and a strong DAB contributor – and I had a wonderful downtown ceremony at 9th and Congress.

I’m going to steal a page from Car Talk and ask you to refrain from posting any congrats in the comments section. Instead, write any notes of congratulations on the back of a 27-inch iMac – with a 3.2GHz third-generation Intel Core i5 quad-core processor, high-capacity 1TB hard drive and advanced NVDIA GeForce graphics, packaged in an incredibly razor-thin, all-in-one design – and deliver it to my office. (Please write any notes in a water-soluble marker as to not hamper the resell value.)

Colorado Tower scheduled for launch next month

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Despite some ominous rumbling on the horizon that the project could be delayed indefinitely, I’m excited to share the news this week that Cousin’s magnificent Third & Colorado office tower is breaking ground next month.

Cousin’s issued a press release Thursday announcing that the 29-story, 371,000-square-foot office tower will break ground early next month. The building has been christened “Colorado Tower” and is scheduled for near completion by the end of 2014.

The Colorado Tower project has already signed two law firm tenants — Dubois Bryant & Campbell – which now offices in 700 Lavaca — and Scott Douglass & McConnico, which now offices in 600 Congress.

Earlier this year, Austin Towers picked up on the fact that this project was running behind schedule, after Cousins initially said it would break ground last year, due to among other things, a pending zoning change that council approved earlier this year.

A lot of people are forgetting that for the longest time the lot was supposed to be a hotel: an 18-story, 300-room Westin Hotel to be exact.

Who could have predicted back in 2008 when the hotel was first announced, on the foothills of the recession, that here we’d be in 2013 with almost a 90 percent downtown Austin office occupancy rate, a smorgasbord of hotel development and an urban residential market that is bright red hot (we’re talking lightsaber red).

(Conversely, I remember Will Wynn and Brewster McCracken – former Austin council members — hyping an upcoming urban rail election back then. Who would have also predicted that here we’d be in 2013 practically no closer to real mass transit, and being outdone handsomely Houston, Dallas and San Antonio.)

Enough about that, though. Check out these renderings of Colorado Tower!