Daily Briefing: 🏡 Georgetown's 900-Home Onx Miracle & Park 290 Shaping Austin's Industrial Skyline! 🏭

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

1. Onx Inc. builds 900 homes in Georgetown, revolutionizing residential construction. 🏡

2. Blackstone's bold move: 500 new homes to transform North Austin's landscape. 🌆

3. Park 290's 792,139 SF industrial project signals a new era in Austin. 🏭

4. Downright Austin Hotel: Bringing luxury and style to downtown in 2024. 🏨

Residential and Multifamily Real Estate Developments

Austin homebuilder using unusual method to rapidly build 900 homes in Georgetown

Source: Austin American-Statesman

Summary: Austin-based homebuilder, Onx Inc. has secured a $33.5 million construction loan from Aztec Group to build more than 900 homes in Georgetown, a rapidly-growing area north of Austin. Onx employs a cutting-edge construction method, X+, in which all components of the home are manufactured offsite and assembled at the development location. Named Rocking Wilco, the project will be carried out in six phases, with the first 141 homes expected to be ready by mid-year. Onx has a portfolio of over 5,000 homes under development across Florida and Texas.

Why this matters: With an extensive development such as this, commercial real estate professionals can anticipate an increased demand for ancillary services and retail spaces, presenting fresh investment opportunities in the Georgetown area.

Blackstone eyes massive multifamily development in North Austin

Source: The Real Deal

Summary: Blackstone subsidiary, Link Logistics Real Estate Management, has submitted a proposal to rezone a 6-acre site in North Austin for a multifamily development. The project, known as LL Braker, could include nearly 500 residential units, 5,000 square feet of retail space, and structured parking on Metric Boulevard. A current warehouse on the site would be demolished to make way for the development. This submission comes in the midst of high construction activity in Austin, with concerns of oversupply as the city's apartment occupancy rate fell to 89% in Q3 of 2023. Blackstone's Austin portfolio already includes around 9 million square feet of various types of spaces.

Why this matters: This news of Blackstone's potential new development highlights the ongoing trend of multifamily and mixed-use projects in Austin, indicating a continuous demand for such properties despite concerns of oversupply. For commercial real estate professionals, this could signal opportunities for collaboration, property representation, and client investment advice in the growing multifamily sector.

Commercial and Industrial Real Estate Developments

Park 290 industrial complex coming to Austin

Source: Newstalk Texas

Summary: Brookfield Properties has initiated construction on Park 290, an expansive 792,139-square-foot industrial project in Austin, Texas. The facility will include four buildings, with sizes varying from 76,000 to 321,000 square feet, providing plenty of commercial space. The buildings will feature 32- to 36-foot clear heights and ample parking space. Anticipated to achieve LEED certifications, the project is slated for completion by the end of the year, with CBRE acting as the leasing agent.

Why this matters: Given the size and caliber of the Park 290 project, it can provide ample opportunities for commercial real estate professionals to connect with potential clients seeking extensive, eco-friendly industrial space in the thriving Austin area.

Skybox, Prologis moving ahead on massive Pflugerville data centers

Source: The Real Deal

Summary: Prologis and Skybox are progressing with their large-scale data center projects in Pflugerville, just outside Austin. An entity linked to Prologis has filed for a $60 million improvement to a data center located at 2515 South Kenney Fort Boulevard. The project includes interior upgrades to a 146,000-square-foot property and is set to commence in February, concluding in July 2025. The companies have also discussed a $548 million investment to construct a 30-megawatt data center at this location. Additionally, they are developing a 600-megawatt “PowerCampus” data center on a plot of 159 acres in Hutto. Investment in data centers is experiencing a surge across the nation, with Texas leading in energy production to meet the high power requirements of these centers.  

Why this matters: This surge in data center investment indicates a strong commercial real estate opportunity in Central Texas, with these projects potentially driving up demand for nearby auxiliary and support properties, offering commercial real estate professionals a chance to capitalize on this trend.

Wilsonart Opens Austin Showroom and Distribution Center

Source: Kitchen & Bath Business

Summary: Wilsonart, a leading engineered surfaces company, has opened a new 45,000-square-foot showroom and distribution center in Austin, Texas, the first of its kind for the company. The facility features a 10,000-square-foot showroom and design center along with a 35,000-square-foot warehouse space equipped with a quartz crane and an adhesive safety storage unit. This new center is the 21st company-owned distribution center for Wilsonart and is expected to boost its ability to offer a diverse selection of engineered surfaces to the Central Texas market.

Why this matters: The new Wilsonart facility could be a game-changer for commercial real estate professionals who can now offer their clients access to a wide variety of high-quality, engineered surfaces directly from the source, potentially expediting design and construction timelines for commercial projects.

Downright Austin, a Renaissance Hotel to Open Spring 2024

Source: Hospitality Net

Summary: Downright Austin, a new Renaissance Hotel, is set to open in downtown Austin in Spring 2024, and is currently in the final phase of a multimillion-dollar transformation. The hotel will have 367 guest rooms, five of which are suites, along with 31,000 square feet of indoor and outdoor event spaces. It will be blocks away from the Texas State Capitol and Moody Amphitheater, and is located in the lively Red River District. Two new dining and cocktail experiences will be introduced at the hotel, in collaboration with Lost Boy & Co. and FBR Management.

Why this matters: The imminent opening of Downright Austin may stimulate further commercial real estate development in the surrounding area, presenting new investment opportunities for commercial real estate professionals and their clients in Austin.

Educational and Community Infrastructure Developments

San Marcos CISD middle schools to undergo nearly $19M in renovations

Source: MySA

Summary: San Marcos Consolidated School District is set to begin major renovations on two of its middle schools, Miller and Goodnight. The projects, budgeted at nearly $19 million, seek to upgrade athletic facilities and fine arts departments respectively. Construction is due to commence this spring with an estimated completion date in August, 2025.

Why this matters: These school renovations indicate a sustained investment in the San Marcos area, which commercial real estate professionals can highlight as a sign of community growth and development to potential investors or clients.