Daily Briefing: 🏗️ Apple's Austin Makeover & CRH's $2.1B Texas Takeover 🍎

Welcome, Construct Intel Austin!

As we kick off another week with our fingers on the pulse of the construction and commercial real estate world, we've got some groundbreaking news to share in our Wednesday morning brief.

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

• CRH plc cements Texas presence with $2.1B asset acquisition. 🏗️

• Apple polishes Austin with major office makeover. 🍎

• The Belvedere: Austin's luxury living leap, $250M and rising. 🏢

• South Central Waterfront: Austin's next high-rise haven, 50 stories max. 🌆

Commercial and Residential Real Estate Developments and Investments in Austin and Surrounding Areas

International concrete business buys $2.1B worth of Texas assets

Source: Texas Real Estate Center News

Summary: Ireland-based CRH plc has finalized a $2.1 billion acquisition of South and Central Texas assets from Martin Marietta Materials Inc., expanding its presence in the state. The acquisition includes the Hunter Cement Plant in New Braunfels, cement terminals in Houston and San Antonio, and 20 concrete plants across San Antonio, Austin, Bastrop, and Round Rock. CRH, which provides construction materials for both public and private projects, anticipates that public infrastructure work will account for 40 percent of its business.

Why this matters: The acquisition signals increased construction activity in the region, which could lead to an upswing in commercial real estate transactions and development, presenting opportunities for savvy real estate professionals in the Central Texas area.

Apple to Fully Lease Austin, Texas, Office Building

Source: Commercial Real Estate Direct

Summary: Apple Inc. has fully leased the Las Cimas I building in Austin, Texas, a three-story, 82,787-square-foot office space. The leasing agreement was negotiated by JLL, and Apple plans to invest $18 million into renovating the building, which was originally built in 1998.

Why this matters: Apple's investment in Austin's commercial real estate landscape underscores the city's continuing appeal to major tech companies, which could signify a strong market for future commercial real estate opportunities and client investments in the area.

247-unit condo project poised to break ground just west of downtown Austin

Source: Austin American-Statesman

Summary: Pearlstone Partners is set to begin the construction of The Belvedere, a $250 million luxury condominium project, at 300 Pressler Street, just west of downtown Austin. The project, which will break ground this spring, comprises 247 units spread across three buildings. The condos will offer direct access to the Lance Armstrong Bikeway and the Ann and Roy Butler Hike-and-Bike Trail along Lady Bird Lake. The one-, two-, and three-bedroom units will range from 717 to 2,336 square feet and prices from the upper $700,000s to over $2 million.

Why this matters: The Belvedere project's commencement indicates a shift towards west downtown development in Austin, providing commercial real estate professionals with opportunities to engage in this growing market and deliver high-end residential spaces to their clientele.

Austin’s South Central Waterfront District Is Finally Growing Up

Source: Austin Towers

Summary: The City of Austin has renewed its focus on the South Central Waterfront's development regulations, with light rail lines set to be constructed in the area. The city is planning a Combining District and Density Bonus Program for the region, allowing developers to build larger projects if they opt in, in exchange for required community benefits such as affordable housing and environmental protection measures. This new program could potentially allow for building heights of up to 50 floors and generate approximately 481 fully subsidized affordable housing units in the area.

Why this matters: With the city's focus shifting towards the South Central Waterfront, commercial real estate professionals can leverage this information to anticipate market shifts, inform clients on potential investment opportunities, and position themselves strategically in this burgeoning region.

Mayfair Is Coming To New Braunfels, TX

Source: ActiveRain

Summary: A new real estate development called Mayfair is being constructed in New Braunfels, Texas. Covering around 1900 acres, the community will feature numerous homes and amenities, with Highland Homes having already broken ground. The city has provided clarification on the development, and an inaugural event, Mayfest, is planned for May 11, 2024.

Why this matters: This development will introduce a significant quantity of new residential and potentially commercial real estate into the Greater Austin Area, providing commercial real estate professionals with new opportunities for their clients seeking to invest in or relocate to the evolving Central Texas market.

Educational and Infrastructure Developments Enhancing Regional Attractiveness

Austin Transit Partnership moves to resolve light rail funding dispute in court

Source: Community Impact Newspaper

Summary: The Austin Transit Partnership (ATP) has sought legal action to gain approval for the funding structure of the Project Connect light rail system, aiming to resolve a resident lawsuit contesting the plan. Officials are looking to issue the first $150 million in bonds for the project's design and engineering. A lawsuit filed against the ATP argues that the funding structure, where property tax dollars are collected and redirected to ATP, could affect its ability to pay off debt. If the bond validation process resolves the lawsuit and the funding structure is approved, the ATP hopes to commence work on the rail project in over two years.

Why this matters: As public transit infrastructure plays a significant role in shaping commercial real estate, the advancement of Project Connect could potentially boost the value of properties near proposed rail stops, offering a unique selling point for commercial real estate professionals to their clients.

Austin's Economic and Quality of Life Recognition

Austin is the best state capital to live in, study says

Source: Austin Culture Map

Summary: Austin, Texas has been ranked as the best U.S. state capital to live in, according to WalletHub's 2024 study. This is based on a variety of factors such as affordability, economic wellbeing, quality of education and health, and quality of life. Austin topped the list in economic wellbeing and quality of education and health. It also has the highest median household income, after cost of living adjustments, among all state capitals. The city has a high rate of new businesses and is marked for its high number of attractions and restaurants per capita. However, Austin also has one of the longest average weekly work hours. The city's education system was also praised, with a high percentage of adults with higher education and a high rate of high school graduation.

Why this matters: The ranking of Austin as the best U.S. state capital to live in is relevant to commercial real estate professionals in Central Texas as it indicates a high demand for commercial spaces due to the economic wellbeing of the city, its high rate of new businesses and its appeal to millennials, all of which could lead to increased opportunities for commercial real estate transactions.