Daily Briefing: 🏛️ Austin's Housing Future with Pulido & Paseo's Skyward Journey Begins!🌆

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

1. Paseo Tower to reshape Austin's skyline: 567ft, 48 stories of urban chic!🌆

2. Lirica East Austin announces a 338-unit multifamily game changer. 🏗️

3. CitizenM's affordable luxury hotel adds a modern twist to downtown Austin. 🏨

4. Mayoral candidate Carmen Llanes Pulido shakes up Austin's housing policy landscape. 🏛️

Large-Scale Residential and Commercial Developments

AUSTIN | Paseo | 172m | 567ft | 48 fl | U/Cs

Source: Austin.tower.net

Summary: A new residential tower named "Paseo" is set to rise on 80 Rainey Street in Austin's rapidly growing entertainment district. The 48-floor development, led by LV Collective and designed by Pappageorge Haymes Partners, has secured its financing and is slated to begin construction soon, with a completion date in 2023.

Why this matters: This large-scale residential project reflects a significant investment in Austin's real estate market. Commercial real estate professionals can use this information to underline Austin's appeal to potential investors, particularly those interested in high-rise developments and capitalizing on the city's booming entertainment districts.

Plans announced for 338-unit Lirica East Austin multifamily

Source: Austin Property Ventures

Summary: CSW Development and Blueprint Local have announced plans for a 338-unit multifamily project named Lirica East Austin. The development will include studio, one-, two-, and three-bedroom units with an average size of 799 square feet. Amenities will consist of a pool, clubroom, fitness center, leasing office, coworking space, and sky lounge. The loan for the project was arranged by JLL, with completion expected by early 2026.

Why this matters: Understanding the scope and details of upcoming projects like Lirica East Austin can give commercial real estate professionals a competitive edge, allowing them to provide prospective clients with timely, in-depth information about new residential opportunities.

Joyful, modern hotel opens doors affordably in downtown Austin

Source: CultureMap Austin

Summary: CitizenM, a Netherlands-based hotel chain, is opening its first Texas location in downtown Austin. The 17-story hotel is located at the corner of Seventh and Colorado streets and boasts 344 rooms with modern features such as iPad-controlled lighting and blinds, and wall-to-wall windows. The hotel also offers a variety of amenities, including a retail space, a 24/7 dining area, a rooftop pool and gym, and self-service ironing rooms. With a focus on 'affordable luxury', the hotel aims to cater to a diverse audience of travelers, including both business and leisure guests.

Why this matters: This new development highlights a growing trend towards 'affordable luxury' in Austin's commercial real estate market, indicating a potential opportunity for commercial real estate professionals to advise clients interested in investing in or developing similar properties.

Real Estate Market and Policy Influences

Carmen Llanes Pulido joins Austin mayoral race

Source: KUT.org

Summary: Carmen Llanes Pulido, a prominent local advocate for housing and equity policies, has entered the race for Austin's mayorship. She will be running against former city council member Kathie Tovo. Llanes Pulido, who has consistently campaigned for affordable housing and disaster preparedness, is known for her stance against the city's HOME initiative, claiming it fails to adequately provide affordable housing and may lead to displacement. She promises a fresh, community-centric approach to governance, emphasizing transparency and resistance to special interests.

Why this matters: The potential change in Austin's political landscape can influence future policies and regulations on housing and commercial real estate, thus it's vital for Central Texas commercial real estate professionals to stay abreast with the mayoral race and understand the candidates' stance on these issues to anticipate potential impacts on their business.

Austin’s most-expensive listing takes $6.5 million price cut

Source: The Real Deal

Summary: Austin’s most expensive listing, a lakefront property at 1404 Rockcliff Road, has undergone a significant price reduction of $6.5 million, bringing its asking price down from $19.5 million to $13 million. Despite the cut, it's still one of the costliest listings in Austin. The one-acre property offers a 3,200-square-foot house near Lake Austin, a two-stall boat dock, a lofted deck, and comes with permitted plans for a 7,400-square-foot primary residence. The existing home can be used as a guest house. The sale is being managed by Bridget Ramey of Kuper Sotheby’s. Austin's luxury market has been growing, but high interest rates and market uncertainty have brought some cooling across residential price levels.

Why this matters: Despite the price cut, this listing remains a prime example of Austin's robust luxury market, which continues to command high prices even in a cooling market, and offers commercial real estate professionals opportunities to engage high-end clients looking for unique properties.

Affordable Housing Initiatives

Ground broken on new affordable housing development in east Austin

Source: KXAN

Summary: Ground has been broken on the Seabrook Square affordable housing development in East Austin, a project consisting of a five-story and a four-story building. The first phase will provide 204 units, all deemed affordable for households earning at or below 60% of the Median Family Income. The development includes a unique feature: 10 "live-work-residence-studios" dedicated to local artists. The project is financed through a variety of sources, including a $40M tax-exempt bond issued by the City of Austin and $32.3 million in Low-Income Housing Tax Credit (LIHTC) Equity.

Why this matters: The development of affordable housing in East Austin presents opportunities for commercial real estate professionals to advise clients looking to invest in this growing sector or businesses seeking to support or benefit from the community's expansion.