Daily Briefing: 🌇 35 Stories Up, Capitol Quarters Down! Austin's Real Estate Roller-Coaster 🎢

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Here’s what you need to know about CenTex CRE Today:

1. 35-story residential tower rising at 14th and Guadalupe, opening 2028. 🏙️

2. Capitol Quarters apartments repossessed, despite half-price downtown housing offer. 💔

Housing and Real Estate Developments

35-Story Downtown Austin Condo Tower Planned at 14th and Guadalupe

Source: Austin Towers

Summary: The Combined Law Enforcement Associations of Texas (CLEAT) headquarters in downtown Austin could soon be redeveloped into a 35-story residential tower. The project, led by Northland Living and designed by local architecture firm Page, will transform the property at 14th and Guadalupe Streets into approximately 286 condo units with a mix of one to three bedrooms, ground-level retail space, structured parking, and a resident amenity deck. CLEAT will also receive a new 10,000-square-foot headquarters within the development. Construction is anticipated to begin in 2025 and be completed in early 2028.

Why this matters: Knowledge of this upcoming project can allow local commercial real estate professionals to prepare their clients for potential investment opportunities in this developing area of downtown Austin, as well as guide residential clients who may be interested in high-rise living in the city center.

Real Estate Challenges and Issues:

Capitol Quarters apartments in downtown Austin repossessed by lender

Source: Austin Business Journal

The Capitol Quarters apartments, located in downtown Austin, have been repossessed by the lender following struggles with high occupancy rates despite offering housing at around half the price of other downtown complexes. The lender has secured a deed in lieu of foreclosure for the property, which opened in late 2022 just a few blocks west of the Texas State Capitol.

Why this matters: Given the prime location, this development signals possible market saturation in downtown Austin and calls for innovative strategies to attract tenants, thereby providing a critical context for commercial real estate professionals to shape their client advice and investment decisions.