Daily Briefing: 💎 Downtown Austin's Latest Jewel: 247 Condos at The Belvedere! 🏙️

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. N. Austin's skyline to evolve with a 45-story, $43M tower. 🏗️

2. "The Belvedere" brings 247 condos to downtown Austin's real estate mix. 🌆

3. Dovetail Condos set to enrich New Braunfels with 62-unit development. 🏡

4. Round Rock's $1.3M park projects promise greenery and connectivity. 🌳

Real Estate Development and Housing

45-Story Tower Planned for N. Austin

Source: Connect CRE

Summary: Turnbridge Equities and the Burt Group are planning a 45-story tower in the North Burnet neighborhood, close to Q2 Stadium. This development will include approximately 825 apartments and will repurpose the site that currently holds four office buildings and an additional 8.5-acre tract with commercial buildings. The project, referred to as Q2 Stadium Assemblage, is awaiting approval from the City Council after getting a recommendation from the Austin Planning Commission. The sites are valued together at nearly $43 million.

Why this matters: Understanding the scope of this development and its potential impact on North Austin's commercial real estate landscape can help professionals guide their clients to new opportunities in a rapidly evolving area.

Local Developer to Build 247-Unit Condo Property in Downtown Austin

Source: Commercial Real Estate Direct

Summary: Pearlstone Partners, a local developer, is gearing up to start building The Belvedere, a 247-unit condo property in downtown Austin. Although the terms of the construction financing aren't disclosed, the firm is now seeking an equity partner for the project.

Why this matters: The article underscores the robust activity in Austin's downtown residential property market, a crucial piece of information for commercial real estate professionals to help their clients understand investment opportunities or competitive market dynamics in the region.

Dovetail Condominiums to break ground in New Braunfels

Source: ReCenter Texas

Summary: GMBC Communities is set to kick off construction of a 62-unit condominium development, Dovetail, at 630 Central Pkwy in New Braunfels. The Dovetail will resemble a cross of stacked condo units and traditional residences, offering a variety of studio, one-, two-, and three-bedroom units. The gated property will house single and tandem garages and will offer amenities such as an off-leash dog park, outdoor kitchen, and swimming pool. The construction is set to commence in the second quarter of this year and conclude in the third quarter of 2025.

Why this matters: This new development adds to the growing array of housing options in the Central Texas region, indicating a strong demand for mixed-use residential spaces, and potentially presenting new opportunities for commercial real estate professionals to expand their portfolio.

Round Rock moves forward with $1.3 million downtown park project

Source: KXAN News

Summary: The Round Rock City Council has approved the development plans for two projects: "Lawn at Brushy Creek" and "Town Green." The former is a 20+ acre park that will connect Heritage Trail West to Veterans Park, featuring a pedestrian bridge over Brushy Creek, a canoe launch, and six acres of park along Pecan Street and Georgetown Street. The latter project will enhance the area surrounding the silver water tower in Round Rock, with improved seating areas and shared use paths, and renovations to the historic Johnson building/gas station. The total estimated cost of these projects is over $1.3 million, and the construction plans are anticipated to be finalized in the next 6-9 months.

Why this matters: These developments present opportunities for commercial real estate professionals to highlight the improved local amenities to prospective clients, enhancing the attractiveness of nearby properties and potentially increasing their value.

Commercial and Industrial Development

Freehill Development Co. adds 650K sf of industrial space across Hill Country

Source: Recenter Texas

Summary: Freehill Development Co. has added over 650,000 square feet of industrial space across the Hill Country region, with projects in Georgetown, San Marcos, Leander, and northeast of San Antonio. The latest project, Hero Way West, is a 227,000-square-foot development in Leander, with Transwestern Real Estate Services handling leasing. Meanwhile, the Clover Crossing project in San Marcos, a two-building development totaling 213,125 square feet, is expected to be delivered later this month.

Why this matters: The expansion of industrial space across Central Texas, particularly in high-growth areas like Leander and San Marcos, presents commercial realtors with an influx of leasing opportunities they can offer to clients looking for sizable, well-located industrial properties.

Balcones LLC to break ground on two new industrial sites outside of Austin

Source: Newstalk Texas

Summary: Balcones Real Estate Group LLC is preparing to break ground on two industrial sites in San Marcos and Lockhart, Texas. The San Marcos project is set to be a 99,400-sf building on nine acres at 500 Wonder World, with the smallest leasable space starting at 7,000 sf. In Lockhart, Balcones is planning a 58,800-sf hub known as Lockhart Logistics in the Lockhart Industrial Park. The park, developed by Titan Development Inc., has already secured tenants for its initial phase. Groundbreaking for these projects is expected to take place in April and later in the summer, respectively.

Why this matters: This information is of high relevance to commercial real estate professionals in Central Texas as it underscores the ongoing industrial developments in the region, providing potential opportunities for client investment or partnerships with the developers.

Surprising Central Texas city has more than doubled its rate of big earners

Source: CultureMap Austin

Summary: Killeen, a city in Central Texas, has experienced a significant influx of high-income households, with growth of 146.2% between 2021 and 2022, according to a study by SmartAsset. This growth has placed Killeen fourth in the nation for the highest growth of high-income households. The study also found that Killeen had the best housing market in the country for first-time homebuyers. Killeen attracted over 16,853 millennials in 2022, representing 10.8% of its population.

Why this matters: The escalation of high-income households migrating to Killeen can signify a boost in demand for high-end commercial real estate properties and services, offering commercial real estate professionals in Central Texas a promising market segment to explore.

Infrastructure and Public Projects

Austin seeks federal funds to transform abandoned railroad tracks into future trail

Source: KXAN News

Summary: The City of Austin plans to turn an abandoned railroad track in south Austin into a trail system, with the help of up to $25 million in federal grant funds. The City Council approved a request for funding from the U.S. Department of Transportation's RAISE grant program. The funds will be used for the Bergstrom Spur Trails to Transit project, a six-mile trail running from Vinson Drive to East Riverside near U.S. Highway 183. The Bergstrom Spur Trail is designed to offer safer pedestrian and bike services and recreation in areas identified as "high-density, low-income, and park-deficient". Construction could commence as early as summer 2024 if awarded federal funds.

Why this matters: The development of the Bergstrom Spur Trails to Transit project can provide commercial real estate professionals with opportunities to market properties near the new trail system, emphasizing increased accessibility and future transit connections as selling points.

Austin Energy’s plan to build a power plant faces opposition from oversight board

Source: KUT

Summary: Austin Energy's proposal to build a new power plant, intended to transition from natural gas to hydrogen fuel, faced significant opposition from the city's Electric Utility Commission's working group. The group criticized the plan due to environmental and economic concerns, suggesting alternatives such as utilizing more renewable energy sources and boosting energy efficiency locally. This contention continues a pattern of disagreements between Austin Energy and the Commission, with implications for Austin's future energy generation and carbon emission goals.

Why this matters: The real estate sector, particularly in commercial and industrial developments, is significantly influenced by local energy strategies, and understanding these changes can help real estate professionals anticipate potential shifts in demand, regulatory changes, and client concerns regarding sustainability.

Austin Transit Partnership applies for federal money to construct Guadalupe transit mall

Source: The Daily Texan

Summary: The Austin Transit Partnership is actively pursuing a transformative light rail development project, Project Connect, which includes converting Guadalupe Street into a transit mall. The project, which has a first-phase budget of $5 billion, has started its environmental review process to qualify for federal funding that could cover half of the phase one costs. The plans, set to majorly impact the University and West Campus areas, are being designed to accommodate high pedestrian, transit rider, and cyclist traffic. The project has sparked some community concerns over traffic changes, prompting open houses for public input. The construction of the first phase is slated to begin in 2027.

Why this matters: The transformation of Guadalupe Street into a transit mall could lead to an increase in foot traffic and public transit use, potentially making commercial properties in the vicinity more attractive to businesses that could benefit from increased visibility and customer accessibility.