Weekend Roundup: 🏙️ Austin's Skyline Shake-Up: Marriott Moves & Mega Sales! 💸

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

1. Downtown Austin's making room: Demolition green-lit for new Marriott Autograph Collection hotel! 🏗️

2. Austin developer StoryBuilt's $2B portfolio, including two Dallas gems, up for sale! 💸

3. CIM Group's Texas love story continues: Onyx183, a 390-unit Austin community, acquired! 🏢

4. Bercy Chen Studio's three iconic Austin properties hit the auction block! 🏛️

Real Estate Acquisitions and Development

Demolition Pending for Downtown Austin Hotel Planned at Fifth and Trinity

Source: Austin Business Journal

Summary: Demolition is set to begin shortly at the corner of East Fifth and Trinity Streets in downtown Austin, Texas, making way for a hotel project by hospitality developers, White Lodging. The city has approved the demolition and excavation permits for the roughly half-acre land assembly of adjacent tracts from 307 to 311 East Fifth Street. The existing buildings, dating back to the 1920s, will be replaced by a hotel that will be part of Marriott's Autograph Collection. However, due to the Downtown Parks Overlay zoning regulation, the hotel will only rise 13 floors high.

Why this matters: Keeping an eye on the development and zoning regulations in downtown Austin, such as the Downtown Parks Overlay, can provide insights to real estate professionals on potential limitations and opportunities for future commercial developments.

Austin has over 120K apartments in pipeline

Source: The Real Deal

Summary: Austin is experiencing a boom in apartment developments with over 120,000 units in the pipeline - a growth that has put the city eighth in the nation for multifamily constructions. However, developers are now facing high vacancy rates as more units are delivered than leased. Rental rates have seen slight stabilization, but ALN market analyst Jordan Brooks predicts a potential decrease in construction activity by 2025 or 2026, which may in turn affect rent growth. With around 36,000 vacant multifamily units currently, this number might increase during the winter and spring when demand typically decreases. Rebound in demand is possible by spring 2024, contingent on various economic factors.

Why this matters: Understanding the current apartment development trends and vacancy rates in Austin allows commercial real estate professionals to better advise their clients on investment opportunities and rental rate predictions.

2 Dallas Properties Up For Grabs After Austin Housing Developer Goes Under

Source: Bisnow Dallas-Ft. Worth

Summary: Austin-based infill housing developer StoryBuilt has gone under, leading to the receivership sale of its $2B portfolio that includes two Dallas properties among many others. One is a 12-acre site in Downtown Dallas, planned for a mixed-use development with 800 housing units and retail space, and the other is a homebuilding site in Lake Highlands. The company, in financial trouble, has sought out voluntary receivership and is now selling its majority and minority stakes in 28 projects that are in various stages of development throughout Austin, Dallas, Denver, and Seattle. A&G Real Estate Partners and Onyx Asset Advisors are marketing the projects for sale.

Why this matters: This information provides central Texas commercial real estate professionals with new potential investment opportunities that have emerged from StoryBuilt's receivership sale, especially those interested in the Austin and Dallas markets.

SPI Advisory Completes Acquisition of 164-Unit Riverbend Apartment

Source: MultiFamilyBiz.com

Summary: Community Located in The Heart of New Braunfels, Texas The SPI Advisory partnership has finalized the acquisition of Riverbend Apartments, a 164-unit Class A- residential community in New Braunfels, Texas. Located between San Antonio and Austin, the property offers several amenities and direct access to the Guadalupe River. This acquisition follows SPI's recent purchase of a 244-unit community in South Austin. SPI is planning considerable renovations to Riverbend Apartments, including upgraded interiors and enhancements to its common areas and gym. The aim is to maximize the property's appeal and capitalize on its unique riverfront location.

Why this matters: The acquisition and renovation strategy adopted by SPI Advisory illustrates the growing potential of multifamily property investments in Central Texas, a trend real estate professionals can leverage when advising clients on diversifying their real estate portfolios.

CIM Group Acquires 390-Unit Apartment Community in Northwest Austin

Source: REBusinessOnline

Summary: CIM Group, a Los Angeles-based real estate entity, has partnered with an undisclosed entity to acquire Onyx183, a 390-unit apartment community in northwest Austin's Parmer Corridor. The property, built in 1995 on 21 acres, has recently been renovated with modern amenities.

Why this matters: The acquisition of this large residential complex indicates a robust and active real estate market in the Austin region, providing opportunities for commercial real estate professionals to identify similar prospects for their clients or investment opportunities.

Properties controlled by prominent Austin architecture firm up for auction

Source: Austin Business Journal

Summary: Three properties linked to the Austin-based architecture and urban planning firm Bercy Chen Studio are set to be auctioned. Currently, qualified bids are being taken for two of these properties, with the third soon to follow. All properties come with their respective real estate and associated debt.

Why this matters: Understanding the details of this auction allows commercial real estate professionals in Austin to identify potential investment opportunities for their clients or for their own portfolios, especially those interested in properties with an architectural significance.

Real Estate Market Trends & Analysis

Austin’s office market is exploding. But no one is moving in.

Source: Texas Real Estate Review

Summary: The Central Texas real estate market is experiencing significant growth across residential, commercial and industrial sectors. Driven by tech sector expansion, population growth and the state's business-friendly climate, property values have surged, creating both opportunities and challenges. Key areas of growth include Austin, with a booming tech scene, and San Antonio, benefitting from a robust healthcare industry. However, the influx of new residents and businesses has also driven up prices and intensified competition, causing some to voice concerns about affordability and sustainability.

Why this matters: Understanding the current dynamics of the Central Texas market, particularly the impact of industry growth and migration trends, is crucial for real estate professionals to strategically guide their clients' investments and stay ahead of competition in this increasingly competitive landscape.

Food & Retail Industry

Small Plates: More burgers, ramen, smoothies on menu in Round Rock

Source: Austin Business Journal

Summary: The article highlights the boom in the restaurant industry in Central Texas, specifically in Round Rock. Several new restaurants, including burger, ramen, and smoothie joints, are setting up shop in the area. The growth in the food industry is contributing to the increase in demand for commercial spaces, making Round Rock a "little Austin." Real estate details are provided, and the article also discusses how retail brokers are securing leases for these new tenants in the region.

Why this matters: With the restaurant industry's growth in Central Texas, commercial real estate professionals have an excellent opportunity to cater to the increasing demand for commercial spaces. Understanding the rising trend of new restaurants can help them target potential clients in the food industry and provide valuable advice regarding the best locations for setting up their businesses.