Daily Briefing: 🌆 Sky's the Limit: Austin's 5 New Towers & Tech's $1.3B Home! 💻

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. Austin's skyline to soar with 5 new towers at 400 S. Congress. 🌆

2. UT students and Caritas transform homelessness with Espero Rutland housing. 🏡

3. $10M from PNC Bank fuels Austin's affordable housing drive. 💵

4. Tech blooms in Texas with a $1.3B data center near Austin. 💻Real Estate Development and Infrastructure Projects in Austin

Major Urban Developments

Austin | 400 S. Congress | 5 Towers | Tallest is 575 Feet & 50 Floors | Proposed

Source: Austin Business Journal

Summary: The Related Companies, a New York-based real estate development firm, plans to transform a 6-acre site at the intersection of South Congress Avenue and West Riverside Drive in Austin, Texas, into a multi-tower complex. The proposed project includes approximately 800 residential units, a 225-room hotel, 200,000 square feet of office space, 90,000 square feet of retail space, 30,000 square feet for restaurants, a 25,000-square-foot grocery store, and an underground parking garage. The tallest tower will reach a maximum height of 575 feet or around 50 stories.

Why this matters: This development is a clear indication of Austin's expanding downtown skyline and booming real estate market, presenting potential investment opportunities and new commercial spaces for real estate professionals to offer their clients.

Affordable and Supportive Housing Developments

UT students help open Austin’s first permanent supportive housing community

Source: The Daily Texan

Summary: The city of Austin has unveiled its first permanent supportive housing community, Espero Rutland, aimed at offering affordable housing to low-income households and individuals suffering from chronic homelessness. This achievement was made possible through a collaboration between the city, Caritas of Austin, the Vecino Group, and students from the University of Texas through Project Advance Austin. In addition to affordable housing, Espero Rutland provides on-site support from case managers to help residents rebuild their well-being.

Why this matters: Understanding this shift towards affordable and supportive housing in Austin can help commercial real estate professionals anticipate future demand trends, which in turn can influence their strategic decision-making and client advisory services.

City Announces Request for Qualifications for Central Austin Multifamily Housing Development Opportunity

Source: AustinTexas.gov

Summary: The Austin Housing Finance Corporation (AHFC) has issued an RFQ (Request for Qualifications) aiming to find a development partner for a 300-unit multifamily apartment complex at 6909 Ryan Drive, in Central Austin's Crestview neighborhood. The development focuses on community priorities such as affordable housing, park space, and transit connectivity. The AHFC-owned property spans 5.5 acres. All RFQ responses must be submitted by March 20, 2024.

Why this matters: This development opportunity in Central Austin highlights the ongoing demand for multifamily housing, and commercial real estate professionals can leverage this information when advising clients on investment or development opportunities in the multifamily sector.

PNC Bank commits $10M to affordable housing in Austin as it plans branch expansion

Source: Austin Business Journal

Summary: PNC Bank, based in Pittsburgh, recently announced a $10 million investment into affordable housing in Austin as part of an expansion plan that includes opening 100 new branches in the Central Texas area.

Why this matters: This development promises significant growth in the local real estate market, offering commercial real estate professionals opportunities to facilitate new business premises for PNC and potentially other financial institutions following suit.

Commercial and Industrial Developments

$Billion Data Center in Works Outside Austin

Source: Connect CRE

Summary: A new $1.3 billion data center is under consideration for Caldwell County, just outside of Austin, Texas. The project, reportedly connected to "Project Snow", would be located on a 206-acre plot and would boost local tax rolls significantly due to the high investment levels. The Austin Business Journal reports that local commissioners are deliberating over three tax abatement agreements for the center, and the establishment of a tax increment reinvestment zone for the site. SkyBox, Prologis, and Prime Data Centers are all associated with large-scale data projects in the region.

Why this matters: The development of such a large-scale data center in the immediate vicinity of Austin presents increased opportunities for commercial real estate professionals to find and secure promising land, commercial, and industrial properties for other tech and data-related clients who might be drawn to the area due to this project.

JV Building 104K SF New Braunfels Storage Facility

Source: Connect CRE

Summary: Bakke Development and BCDC are partnering to construct a 104,875-square-foot self-storage facility in New Braunfels, Texas, marking the duo's fifth joint project. The four-story building, funded by a $10.1 million construction loan from Frost Bank, is slated for completion in the first quarter of 2025 and will house 987 climate-controlled units. This facility will be one of the 23 within a 3-mile radius in a market where 14 similar developments are under construction.

Why this matters: The growing demand for self-storage facilities in Central Texas, as indicated by the 14 properties currently under construction, presents commercial real estate professionals with opportunities to expand their portfolio and advise clients interested in diversifying their investments.