Downtown Austin Blog

downtown Austin's real estate and neighborhood blog

Will Congress Avenue’s Hogg Building Become A Hotel?

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The ABJ’s Jacob Dirr scoops that Crescent Hotel Group has placed under contract the historic Hogg Building located at 804 Congress Ave.   After the announcement in May of a possible hotel on the 400 block of Congress Ave, this is the second boutique hotel possibility for Congress Avenue.  The article indicates that the lender, Wells Fargo, says it’s a “pipe dream”.

There is such a shortage of hotel space in downtown Austin, and there is much less “cool” hotel space that can invigorate the area immediately surrounding it.  My fingers are crossed that the stars align for this project.

-Jude

6th Street + Ghostbusters = WIN!

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Got to give it up for Parkside and the sponsors of last night’s Rolling Roadshow/blockparty screening of Ghostbusters.  I hemmed and hawed about going because recently it’s been hotter than the warm side of hell, but I cowboy’d up with my lawnchair and headed out.  I’m glad I did, too.  Temperature was fine, beers were cold, admission was cheap $5 (donation), City Council Member Chris Riley was in the audience, and Bill Murray was on the screen.

The turnout was easily 750+ people.  That’s pretty solid attendance, especially for a hot August Sunday night.  We should do more of this.

6ixth Street Austin, Director, Josh Allen

Is This The Next Bar On Rainey Street?

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86 Rainey Street

The Rainey Street Historic District is listed on the National Register of Historic Places, and new businesses must get approval from the Historic Landmark Commission before commencing with any building rehab.   I have to give credit to businesses coming into Rainey Street.  They are doing a great job at rehabbing the old bungalows and creating an enjoyable atmosphere.

But, with 1,000+ door fronts in the district, let’s shoot for more mixed uses.  Are we approaching market capacity for new bars in downtown Austin’s Rainey Street District?  It’s a fair question to ask.

Rainey Street is zoned CBD, and this is a good thing!  However, the density entitlements of CBD sit idle (potentially for years) and the district is dominated by residential uses.  The Downtown Austin Plan expresses five Urban Design Priorities for Rainey Street District.  One of those states: “Limit the number of cocktail uses allowed.”

When are we going to see some day time retailers and restaurants, eh? Truth is the district is lacking sidewalks and offers little parking to support many uses except for bars, which are listed below.

1) Lustre Pearl (97 Rainey Street) is has applied for Rainey Street’s first Outdoor Music Venue permit, to the chagrin of many neighbors fearing a trend.
2) Clive Bar (609 Davis Street) is a great bar that we love to go to.
3) “96” Rainey Street under construction, and will soon be a sports bar.
4) Icenhauer’s (83 Rainey Street) is under construction, and should be open on September 20th.  It will be a bar.
5) 86 Rainey Street (pictured above and below) has started down the path towards becoming… something.

Back in April, I found myself hanging out in front of 86 Rainey Street, drinking cold beers with John Arley – an affable guy who sang a few songs for me.

DAB STATS: July Transaction Summary

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In July of 2007 we recorded 14 transactions at an average of $353psf.

In July of 2008 we recorded 11 transactions at an average of $289psf.

In July of 2009 we recorded 13 transactions at an average of $267psf.

In July of 2010, we recorded 12 transactions at an average of $314psf!!

What insights can we glean from four years of July transaction data?  Based on my experience this year, I would say those numbers show that [in aggregate for downtown] a bottom had been reached, and we’re returning to normal where average prices hover around $300psf.

If developers reported sales (they don’t, but if they did), July’s closed Sabine units would nullify the effect of the higher priced closings at the Austonian, Spring, and Four Seasons.  Also, at least two of July’s transactions were deeply discounted transactions at Milago and yet the average numbers are still strong.

The market continues to place a premium west of Congress Avenue, as transactions at Austin City Lofts and 360 condos exceed $400psf.  Feedback from my clients indicate this premium is a reflection of these buildings’ proximity to a mix of retail uses and to Whole Foods.  As inventories of new construction continue to dwindle, the average buyers’ expectations are beginning to come back inline with a healthy resale market.

An example of a great buy in July:  Milago #423. A 2bd/2ba corner unit at tree level with city views for $300,000.  The seller took a hit on this one and originally paid $382,500.  Also, I’m bullish on the Rainey Street District, future improvements to Waller Creek, and the desirability of living near the trail for couples/families.

What does the buyer who prioritizes value do now?  Be prepared.  Get pre-qualified for a mortgage.  Be ready to pounce on the random short sale or bank owned property.  I seem to find 1-2 each month.  Forget about foreclosure auctions in downtown – they simply do not happen with any regularity, and 99% of the time the bank takes back the property and lists it on the MLS market where they can get closer to market rates.  Of course, you can go to the courthouse to see for yourself.  Or, you can just contact me.

Registered members of DAB can download a complete statistical and transaction report here.

-Jude