Daily Briefing: 🏗️ Manor's $41.6M Cantarra Project & RiverSouth's New Tenant! 🌆

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 Thursday morning brief.

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

1. Tokyo Electron heats up Austin with 98,800 sq ft RiverSouth move. 🔥

2. KeyBank unlocks $41.6M for 325-unit Cantarra Apartments, Manor's latest catch. 🏗️

3. CitizenM checks into Austin, elevating downtown with a 344-room luxury tower. 🏨

4. Austin & University cap I-35 expansion with innovative urban bridges. 🌉 

Commercial Real Estate Development and Investment Opportunities

Samsung supplier Tokyo Electron has a new home in Austin at mixed-use tower RiverSouth

Source: Austin American-Statesman

Summary: Tokyo Electron, a major supplier for Samsung, has announced its move to a new location in Austin, specifically the mixed-use tower RiverSouth. The Japan-based semiconductor equipment supplier, with a significant presence in Central Texas, plans to occupy approximately 98,800 square feet of the 372,000-square-foot building. This relocation comes at a time of expected growth in the U.S. semiconductor industry, bolstered by the passing of the Chips and Science Act providing funding for domestic chip manufacturing. The company's previous campus, a 107-acre property in Southeast Austin, is up for sale.

Why this matters: Through the relocation of Tokyo Electron's North American headquarters to RiverSouth, commercial real estate professionals in Central Texas can anticipate an increased interest in office space in and around the area, thereby creating opportunities for client property investment and portfolio expansion.

KeyBank provides $41.6 million construction loan for 325-unit apartment community in Austin market

Source: RE Journals

Summary: KeyBank Community Development Lending and Investment has facilitated a $41.6 million construction loan for the development of Cantarra Apartments, a 325-unit mixed-income apartment community in Manor, Texas, located in the Austin MSA. The Affordable Housing Commercial Mortgage Group from KeyBank has also coordinated a Freddie Mac 36-month Non-LIHTC forward commitment for permanent financing of $46.2 million once the property is stabilized. The Cantarra Apartments project, sponsored by JCI Residential, will set apart 166 units for 60% of area median income rents, with the rest at market rates. The complex is conveniently located near employment and entertainment opportunities and major interstates leading to downtown Austin.

Why this matters: This project indicates a continued demand for multi-family housing in the Austin area, providing commercial real estate professionals with insights about emerging trends and investment areas in the region. This knowledge can assist agents in identifying potential opportunities for their clients and guiding their investment decisions.  

The NRP Group Celebrates Grand Opening of Upscale Mixed-Income Multifamily Community Station42 in Killeen Texas Near Austin

Source: Yield Pro

Summary: The NRP Group, in partnership with The City of Killeen Public Facility Corporation, J.P. Morgan, and Texas Capital Bank, have opened Station42, a 368-unit mixed-income multifamily project in Killeen, Texas. The development is targeted towards the "missing middle" demographic struggling to afford market-rate rents in the rapidly growing region. More than half of the property’s units are reserved for residents earning less than 80% of the area median income. The property is close to Killeen’s historic downtown and features a wide range of amenities.

Why this matters: Understanding the strategy and mission behind projects like Station42 can assist local real estate professionals in identifying potential opportunities for their clients in the affordable housing segment, which is being actively developed to meet the demands of the rapidly growing population in Central Texas.

Ground breaks on Austin affordable housing complex

Source: Newstalk Texas

Summary: The NHP Foundation, Capital A Housing, and the Austin Housing Finance Corp. have commenced construction on Seabrook Square, a 204-unit affordable housing project in Austin, with units designated for households earning 60 percent or less of the AMI; the project will also include 3,000 square feet of commercial space, and is financed through a combination of tax-exempt bonds, low-income housing tax credits, subordinate debt financing, and a construction loan, with completion anticipated for late 2025.

Why this matters: The development of Seabrook Square highlights a growing trend towards incorporating commercial space in affordable housing projects, an insight that commercial real estate professionals can leverage to identify similar opportunities and deliver value to their clients in the Austin area.

citizenM Welcoming Guests in Austin

Source: Connect CRE

Summary: CitizenM, an affordable luxury hotel chain, has opened a new property in downtown Austin in partnership with Turnbridge Equities. The new 17-story tower features 344 rooms, priced at $199 per night, and offers amenities such as oversized beds, a 24/7 gym, a rooftop bar and pool, and various art pieces, including a rooftop mural by renowned Mexican Illustrator Hilda Palafox.

Why this matters: The opening of another luxury property in Central Texas reaffirms the region's growing prominence as a hospitality hub, providing commercial real estate professionals with substantial opportunities to engage in related commercial property deals.

Educational Infrastructure and Community Development

Dripping Springs ISD seeks feedback on second high school

Source: Hays Free Press

Summary: Dripping Springs Independent School District is seeking feedback on its second high school design with a public survey. So far, only the design aspect of the high school, which will be able to accommodate 2,500 students in grades 9-12 on Darden Hill Road in Driftwood, has been approved; construction funding depends on a future bond program.

Why this matters: The development of a new high school in Driftwood suggests potential growth in the region, which could create opportunities for commercial real estate investments as businesses may seek to cater to the emerging population.

Dripping Springs ISD to host groundbreaking at Sycamore Springs

Source: Hays Free Press

Summary: Dripping Springs Independent School District is set for the groundbreaking ceremony of the Sycamore Springs Middle School (SSMS) expansion project. The project, part of the May 2023 bond, will increase the school’s student capacity from 850 to 1,200 and include a cafeteria expansion. Construction is planned to start in February and last for approximately one year.

Why this matters: The expansion of SSMS indicates a growing population in the Dripping Springs area, potentially driving demand for commercial real estate as new families and businesses move into the area.

Professional Development and Market Insights

From Capitol City to Silicon Hills: Austin’s Evolution into Tech Hub and its Effect on the Office Commercial Real Estate Landscape

Source: Knowledge Leader Colliers

Summary: The article details Austin's transformation into the "Silicon Hills" and its implications on the office commercial real estate landscape, with its journey beginning in the 1960s. It discusses the influence of key tech companies like Texas Instruments, IBM, and Dell in shaping the city's evolution, and how this has impacted the commercial real estate market in Austin. The piece also acknowledges Austin's status as the 10th largest metro in the nation.

Why this matters: The shift towards Austin as a tech hub creates opportunities for commercial real estate professionals to capitalize on the increased demand for office spaces, and to advise their clients on the best locations for tech-driven businesses.

For Austin's last original public housing project, redevelopment is still out of sight

Source: Austin Business Journal

Summary: Austin's housing market is experiencing unprecedented growth, with prices soaring due to strong demand and limited supply. The city's tech boom is attracting many out-of-state buyers, particularly from California, causing the median home price to increase by nearly 40% in a year. Despite the pandemic, the market shows no signs of slowing, with Austin becoming a major tech hub and drawing more people to its high quality of life and vibrant culture.

Why this matters: Understanding the dynamics of Austin's housing market, especially the influx of tech workers, allows Central Texas real estate professionals to target their marketing and sales efforts effectively and provide strategic advice to their clients about when and where to buy or sell.

Earn TREC CE credit with online pond maintenance course

Source: Texas Real Estate Center News

Summary: Texas A&M AgriLife Extension is offering an online course on basic pond maintenance on March 6, 2024. This 90-minute course, which offers one CE hour from the Texas Real Estate Commission, covers evaluation of a pond's condition and potential costs for remediation. The course is priced at $35 and is relevant for real estate professionals, new landowners, and potential property buyers.

Why this matters: The course insight on pond evaluation and maintenance can provide Austin-based real estate professionals with a unique selling point when dealing with properties featuring ponds, enabling them to advise clients more accurately on property value and potential costs.