Daily Briefing: 🏙️ SPI's Big Buy & Austin's Tiny Future: Real Estate's Yin and Yang 🚐

September 19th, 2023 News Brief TLDR:

1. SPI Advisory buys 244-unit Parkview Terraces in Austin's SoCo district. 🏙️

2. City mulls cutting compatibility buffers to 75 feet for new housing. 🏡

3. Miami's Mark McClure secures $24M loan for Maine condo development. 🏢

4. Austin eyes legalizing Tiny Homes and RVs as ADUs. 🚐

REAL ESTATE MARKET TRENDS & INVESTMENT

SPI Advisory Acquires 244-Unit Parkview Terraces Apartment Community in Austin's South Congress Entertainment District Area

Source: MultiFamilyBiz.com

Summary: SPI Advisory, a private equity firm specializing in multifamily real estate, has acquired the 244-unit Parkview Terraces apartment community, previously known as Cortland Southpark Terraces, located less than five miles from Austin’s South Congress entertainment district in Texas. This purchase means the Austin culmination of the firm’s assets now reaches almost 2,500 units. Observations indicate population growth around the property and relatively high average household income thus positioning the property conveniently close to major employment, retail, and entertainment centers. The acquisition forms part of SPI Advisory's expanded Austin market presence strategy and indicates belief in future growth in this particular area.

Why this matters: Understanding hearty acquisitions in local markets, just as SPI Advisory has just done with Parkview Terraces, helps commercial real estate professionals better assimilate local market dynamics, predict growth areas, and retail price changes, which ultimately allow them to circumstantially position their clients for success.

Rail Yard Announces the Launch of Connectivity Score®

Source: PRNewsWire.com

Summary: Austin-based startup Rail Yard has introduced a Connectivity Score, a first-of-its-kind rating scoring internet accessibility, speed, and capability for commercial and residential properties. Developed through a proprietary algorithm, the score amalgamates vast amounts of data from various sources to give a clear understanding of internet access in any location. The measure will bring transparency of connectivity options, pivotal to real estate decisions. In light of the launch, Rail Yard will be attending the upcoming CREtech Conference, emphasizing its readiness to transform the real estate arena by furnishing critical, real-time current data to its partners.

Why this matters: Central Texas commercial real estate professionals can capitalize on this novel tool to enhance their property value proposition and deliver better-informed decision-making for potential clients, standing out in a consumer-focused real estate market increasingly reliant on digital connectivity.

Miami-Based Developer Mark McClure Secures $24 Million Loan for Condo Development in Cumberland Foreside, Maine

Source: 24-7PressRelease.com

Summary: Mark McClure, a Miami-based developer, secured a construction loan worth $24 million for "The Mark," a high-end condominium project in Cumberland Foreside, Maine. The development, currently 40% complete due to the utilization of their own resources and help from Titan Funding, will be the first real estate project in Maine to close on cPace financing. Additionally, McClure's firm, GenX Capital Partners, is set to close deals worth $155 million in October. Among their other significant developments nearing planning stages is an $80 million apartment and retail development in Austin, Texas.

Why this matters: The mention of the $80 million development in downtown Austin, Texas lays down a hint of promising growth in the area and represents an opportunity for professionals to keep an eye on potential future transactions or take inspiration for new commercial real estate activity in the region.

Fundrise Competitors In 2023 – Start Investing In Real Estate

Source: VitalDollar.com

Summary: The article discusses Fundrise, one of the top online real estate crowdfunding platforms, and compares it with its significant competitors. It notes that CrowdStreet, headquartered in Austin, has become one of the largest real estate crowdfunding platforms in the US, with over 776 funded deals, 344+ project sponsors, and more than $4.16 billion invested to-date. However, all of its opportunities require a relatively high minimum investment, starting at $25,000. The article also reviews other platforms like RealtyMogul and DiversyFund which cater to both accredited and non-accredited investors and offer more affordable entry points.

Why this matters: Understanding the offerings of these crowdfunded platforms, like Austin's Crowley, can allow Central Texas agents to guide both traditional clients and investors looking to diversify their investment strategies into real estate, even if the individual budget is relatively straightforward. Read more.

URBAN DEVELOPMENT & ZONING POLICIES

City could reduce compatibility buffers to 75 feet to encourage new housing

Source: AustinMonitor.com

Summary: Austin's city staff has recommended reducing the height restrictions for buildings near single-family homes after examining how these restrictions could potentially increase housing availability, especially near transit corridors. Based on their findings, reducing the buffer around these triggering properties to 75 feet would allow more than 71,000 new homes to be constructed as part of taller buildings that are presently barred due to strict city compatibility requirements. The proposal also includes relaxing compatibility requirements for certain property classifications, intending to meet the city's commitment to its 2017 Strategic Housing Blueprint. The blueprint calls for the addition of 135,000 housing units with various affordability by 2027. The proposal to relax compatibility norms is voted in by the Council but faces suspicion over its density bonus programs.

Why this matters: As Austin city's potential reduction in height restrictions and relaxed compatibility requirements could see the resurgence of formerly stifled projects, commercial real estate agents have to revise their approach to find high capacity projects around transit corridors near single-family homes for their clients for more dynamic target market experiences.

Austin Could Legalize Tiny Homes, RVs as ADUs

Source: Planetizen.com

Summary: The Austin city council is considering an expansion of the definition of accessory dwelling units (ADUs), potentially legalizing structures like tiny homes and recreational vehicles within single-family districts. The resolution, pushing for changes to the Development Code, could dramatically alter the housing landscape in Austin. Currently, city regulation limits such structures to campground, mobile home, or commercial lots. To add, new regulations anchoring ADUs as contributors to housing stock rather than exclusively short-term rentals are being proposed, requiring units intended for short-term rental to be registered with the city accordingly.

Why this matters: n an increasingly tight real estate market like Austin, these legislative adjustments could present novel property development and investment opportunities, making the integration of smaller and more affordable ADUs a lucrative venture for commercial property owners.

Developers hope to add 750 homes to struggling Milford mall

Source: TheRealDeal.com

Summary: Austin-based Centennial Real Estate, after two previous attempts, is proposing a new plan to convert a struggling mall in Connecticut into a mixed-use property. Specifically, the developer plans to add up to 750 multi-family housing units in three separate phases to the 50-acre mall area. This development will spot “a more integrated layout” with an initial phase that includes a plaza spanning at least 25,000 square feet amongst the multi-family units. The project awaits review by Milford's Planning and Zoning board.

Why this matters: Exemplifying transformative use of retail properties into residential spaces, this strategy by Centennial Real Estate suggests a trend that Central Texas real estate professionals could possibly investigate or propose to clients seeking options beyond traditional commercial space dealing with vacancies or falling rents.

AGRICULTURAL & SUSTAINABLE LIVING

Micro-Housing: Which Architects Get It Right, and Why the Tiny House Movement Is Going Mainstream

Source: Architizer.com

Summary: Residential living trends are shifting towards the concept of smaller, efficient, and sustainable spaces, including micro-housing. Amidst a potential decrease in urban dwellings due to the COVID-19 pandemic, a persistent trend towards densifying growing urban localities persists. Architects are designing intelligent space-utilization strategies in compact units while communities rewrite zoning codes to promote such creative efficiencies that satiate the prospective end-users' yearn for convenient living. Additionally, living in smaller environments contributes to decreased carbon footprints, bolsters affordability, and encourages social integration by resident proximity. Case studies include 'Portland Twenty', which harnesses neighborhood densification strategies, and 'The Canterbury House' in Austin, Texas, an optimized compact house in 1680 sq ft.

Why this matters: Real estate professionals in Central Texas can use this micro-housing trend to capitalize on smaller urban lots in Austin or nearby suburban areas, thus affording eco-friendly, affordable, and efficient small-scale building opportunities to attract a demographic that values minimalist yet wholly practical living.