Daily Briefing: 🏘️ Austin's Housing Game Changer: $87.8M KeyBank Project Unveiled! 💰

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 Friday morning brief.

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

1. CapMetro's new Q2 Stadium rail station opens, enhancing Austin FC game days! 🚆

2. Partners Capital snags 107-room Hilton Garden Inn, boosting San Marcos' allure. 🏨

3. KeyBank fuels Austin's housing diversity with $87.8M mixed-income project. 🏘️

4. Bastrop's growth sizzles with a $13M Everhome Suites hotel development. 🌳 

Real Estate Development and Infrastructure Projects

CapMetro rail station at Q2 Stadium to open with Austin FC season Feb. 24

Source: Hill Country News

Summary: The new CapMetro Rail station at Q2 Stadium, McKalla Station, will begin operating on the opening day of Austin FC's home schedule, February 24. The station, built as part of the city's negotiations with franchise owners and project developers, is designed for high capacity, with three separate platforms connected by a pedestrian crossing. Kramer Station, the previous station for fans, will be decommissioned once the new Broadmoor Station near the Domain opens, estimated to be late 2024 or early 2025. The 32-mile CapMetro Rail Red Line operates between downtown Austin and Leander, with Cedar Park and Leander residents having the closest access at the Leander Station and at Lakeline Station.

Why this matters: The opening of a new, high-capacity transit station in the vicinity of Q2 Stadium could potentially increase the appeal and value of nearby commercial properties due to improved accessibility for large numbers of people.

KeyBank Provides $87.8M in Financing for Mixed-Income Project in Metro Austin

Source: REBusinessOnline

Summary: KeyBank has allocated $87.8 million for the Cantarra Apartments, a 325-unit mixed-income project intended for Manor, a northeastern Austin suburb. The financing is divided into a $41.6 million construction loan and a $46.2 million forward commitment for permanent financing from Freddie Mac once the property is stabilized. The Austin-based developer, JCI Residential, will dedicate approximately half of the units for renters earning 60 percent or less of the area median income (AMI) and the rest for households earning 120 percent or less of AMI. The project's amenities include courtyards, fitness rooms, mail and parcel rooms, bike storage, and pet areas.

Why this matters: This investment by KeyBank in a mixed-income housing project indicates a significant commitment to diversifying income levels in Austin's housing market, a trend that commercial real estate professionals should monitor for potential opportunities.

Booming Bastrop Lands Choice Hotel Brand

Source: Connect CRE

Summary: Bastrop, a rising economic hub in Central Texas, is set to receive a $13 million, 114-room Everhome Suites hotel, built by EBCO, near Ascension Seton Bastrop Hospital. The city has experienced strong population growth over the past decade, attracting major employers such as SpaceX, Boring Co., and a movie studio expected to employ 550 people. Additionally, grocer H-E-B plans a $28 million expansion, and LS Electric Co., a South Korean company in the Samsung chain, purchased a 40,000-square-foot factory in the city last summer. 

Why this matters: The robust growth and influx of significant businesses in Bastrop indicate a promising burgeoning market for commercial real estate opportunities in the area, potentially offering a wealth of investment choices for clients interested in diversifying their portfolios with properties in fast-growing areas.

Hospitality Sector Investments

Partners Capital Acquires 107-Room Hilton Garden Inn Hotel in San Marcos, Texas

Source: REBusinessOnline

Summary: Partners Capital, an investment arm of Partners Real Estate, has recently acquired a 107-room Hilton Garden Inn hotel in San Marcos, Texas. The property is conveniently located midway between Austin and San Antonio, offering various amenities such as a fitness center, business center, swimming pool, meeting and event space, and an onsite restaurant and bar. The details about the seller and the sales price remain undisclosed.

Why this matters: The acquisition signals a growing interest in commercial real estate investments within the Central Texas region, specifically in the hospitality sector. This trend may present valuable opportunities for commercial real estate professionals to advise their clients with investments in this area.