Daily Briefing: 🏗️ Highrise Horizons: Austin's Skyline Transformation & Norman Commons' $58M Housing Play! 🏠

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

1. Austin's skyline reshapes with 385-unit highrise on Flats on Burton's site. 🏗️

2. Seabrook Square's groundbreaking signals a boom in East Austin's multi-family housing. 🌆

3. East Austin's affordable housing gets a $58M boost with Norman Commons. 🏠

4. Austin FC's valuation kicks to $800M, spurring real estate goals. ⚽

Urban Development and Redevelopment Projects

Austin Developer to Tear Down Apartment Complex, to Build Another

Source: Connect CRE

Summary: An Austin developer plans to demolish a two-story, 134-unit apartment complex to construct a highrise consisting of 385 multifamily units along with office and retail space. The developer, Flats on Burton, is petitioning the City of Austin to support a zoning change to facilitate the redevelopment project. The existing development, built in 1972, spans five acres. The proposed zoning change might also involve a fee payable for affordable housing or the provision of on-site affordable housing options. City code requires that at least 10% of residential rental units be allocated for affordable housing, catering to individuals earning less than 80% of the region's median family income.

Why this matters: This article signals a trend of increasing redevelopment in Austin, a growth opportunity for commercial real estate professionals to explore as it involves greater residential density and mixed use spaces, and notifies them of the city's affordable housing requirement in such developments.

Groundbreaking for Seabrook Square Multi-Family Development in East Austin

Source: "TechCrunch"

Summary: "Apple is set to open its billion-dollar campus in Austin, Texas, by 2022. The tech giant's expansion in the city will bring about 15,000 jobs, which is expected to significantly boost the local economy and drive up demand for residential, commercial, and industrial real estate in the area. The campus, covering 133 acres, is also likely to spur development in the surrounding land, potentially opening up opportunities for land and farm real estate."

Why this matters: "The anticipated influx of Apple employees and the consequent economic uplift will likely increase demand for diverse forms of real estate, creating opportunities for both sellers and buyers, and positioning real estate professionals to facilitate these transactions and meet this new demand."

Financing for new east Austin affordable housing development secured

Source: KXAN News

Summary: The City of Austin Housing Department has secured $58 million in construction financing for a new development, Norman Commons, to be located in East Austin. The project, featuring 156 rental units and 32 for-sale units, is aimed at families earning 60% or below the median family income. The development will also include an onsite Learning Center with free services for residents, as well as additional support for families at risk of homelessness.

Why this matters: This development underscores the ongoing efforts towards affordable housing in Austin, providing commercial real estate professionals with a valuable opportunity to engage with clients seeking affordable housing investments or partnerships in similar developments.

Austin FC is 6th most valuable MLS team in 2023

Source: CAPITAL CITY SOCCER

Summary: Austin FC, the Major League Soccer team in Austin, has seen its valuation increase from the initial $150 million expansion fee to $800 million, as per a new MLS valuation report. This valuation makes Austin FC the 6th most valuable MLS franchise in 2023, with a market valuation increase of 27 percent. The team's valuation is a product of revenues, team-related businesses, and real estate holdings. Looking ahead, Austin FC shows promising growth for 2024. Season tickets are already sold out, new sponsorship deals have been signed, and Verde Square, a four-building complex at the Q2 Stadium that includes offices, apartments, retail, and a hotel, could progress this year.

Why this matters: The increase in Austin FC's value, coupled with the development of the Verde Square project, offers commercial real estate professionals in Austin significant opportunities in the areas surrounding the stadium, including retail, residential, and office spaces.

Transportation Infrastructure and Its Impact on Real Estate

Commuter rail stop at McKalla Station to open for Austin FC's season opener

Source: KXAN News

Summary: CapMetro has announced the opening of the new McKalla Station commuter rail stop on Saturday, February 24. The station is located near Q2 Stadium, where Austin FC plays, and will be added to CapMetro's Red Line, which extends 32 miles from Leander to downtown. The station includes two passenger platforms and expanded walking and bike paths that connect the stadium and the surrounding neighborhood. The current Kramer Station, located about a mile from McKalla Station, will close once the new station and the upcoming Broadmoor Station open.

Why this matters: The new McKalla Station, with its proximity to the Q2 Stadium and enhanced connectivity, can increase the attractiveness and value of commercial real estate in the surrounding area, offering potential investment opportunities for commercial real estate professionals and their clients.

Commercial and Retail Space Development

Leander to add new dining and retail strip

Source: Newstalk Texas

Summary: Southbrook Station, a new dining and retail strip is scheduled to begin construction in Leander off US 183, with completion expected later in the year. The development is currently 60% preleased with negotiations underway to reach approximately 90% occupancy. Confirmed tenants range from food services like Cava and Crust Pizza to health services like CareNow Urgent Care and Enamel Dentistry, as well as other retailers.  

Why this matters: The growing commercial development in Leander, particularly the pre-leasing status of Southbrook Station, indicates a robust demand for retail and dining options, a factor that can be utilised by commercial real estate professionals to attract potential investors seeking to capitalise on this trend.