Daily Briefing: 🌿 Austin’s Green Future & Fallen Giants: Exclusive Insider Peek! 📉

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

1. MML's debut Sixth&Blanco: eco-conscious, mixed-use marvel in Clarksville! 🌿

2. Seabrook Square adds 204 affordable units with $74.5M; artsy and inclusive! 🏠

3. Austin's Conrad Hotel Tower Plan hits a dead-end; property now for sale. 🚧

4. Austin's iconic Bloomhouse experiences skyrocketing value, now an Airbnb gem! ✨

New Development & Construction Projects

Austin Hospitality Powerhouse MML Announces its First Mixed-Use Development

Source: Austin Monthly Magazine

Summary: Austin-based MML Hospitality is venturing into mixed-use development with its Sixth&Blanco project in Clarksville. The project, designed by Swiss firm Herzog & de Meuron, will encompass a city block and feature a hotel, private residences, a private club, retail shops, art galleries, and restaurants. The building's design will focus on maximizing daylight and creating inside-outside experiences. The development is also intended to be eco-friendly, with construction methods aimed at reducing the carbon footprint, and features designed to reduce energy and resource consumption. Construction is set to begin in 2024 with delivery of private residences in 2026.

Why this matters: The Sixth&Blanco mixed-use development will significantly impact Austin's commercial real estate landscape, providing novel opportunities for professionals in the market to engage with diverse property types in a single location while addressing growing demands for sustainable and community-centric spaces.

Seabrook Square to Add Over 200 Units of Affordable Rental Housing in East Austin

Source: Austin City Website

Summary: The City of Austin Housing Department, in partnership with the NHP Foundation, Capital A Housing, and the Austin Housing Finance Corporation, has secured $74.5 million in construction financing for a new 204-unit multi-family development, Seabrook Square I, at 3511 & 3515 Manor Road. The community is uniquely designed to support black-led non-profits and small businesses and aims to enrich the surrounding area with an arts hub.

Why this matters: Construction is scheduled to start in October 2023, with the project being completed by 2026. All the units in the first phase will be affordable for households earning at or below 60% Median Family Income (MFI), and ten units will be reserved as live-work-residence-studios for East Austin artists. Understanding the new developments, like Seabrook Square I, which are focused on affordable and community-oriented housing, allows Central Texas commercial real estate professionals to tailor their portfolio offerings to meet the region's growing demand for such projects, hence, providing better opportunities for their clients.

Stalled or Failed Development Projects

It’s Not Looking Good for Downtown Austin’s Conrad Hotel Tower Plan

Source: Austin Towers

Summary: The 63-story Conrad Hotel and Residences tower that was planned for East Second Street in downtown Austin is now apparently defunct. The property is now listed for sale by CBRE, which includes the Conrad site and an additional corner property. Despite initial approval from the city and the relocation of a historic house on the site, work on the project has stalled. The property is being marketed as a premier development site with potential for a larger project.

Why this matters: With this development site back on the market, it offers potential for new projects, presenting opportunities for both investors and commercial real estate professionals in Austin to leverage the prime location to deliver value to their clients.

Real Estate & Property Market Trends

I Bought Austin's Famous Seashell-Shaped Bloomhouse and Rent It on Airbnb

Source: Austin Business Journal

Summary: See Inside this Popular, Magical Property. Austin's thriving tech industry continues to fuel commercial real estate growth, with the city seeing record-breaking industrial property sales in 2021. The city's strategic position in the heart of Texas, along with its pro-business environment, has attracted a diverse range of industries, from manufacturing to logistics and distribution. This steady demand, combined with a limited supply of industrial spaces, has driven property values to new highs, with prices per square foot up by 20% year on year.

Why this matters: Capitalizing on the high demand and limited supply of industrial spaces, real estate professionals can guide their clients towards profitable investments in Austin's industrial real estate market.