How Much Does A Downtown Austin Condo Appreciate Over Five Years?

How Much Does A Downtown Austin Condo Appreciate Over Five Years?

Austin condo performance over five years, moving average

“How much will this condo be worth in a few years?”

Is there a more important question for an investor?  It’s a question without a specific answer, though.  Nobody can predict the future, of course.  However, we can glean insight from what history tells us.  The information we uncovered is pretty interesting.

Below is an analysis I prepared on the moving average of a 5 year hold of a downtown condo.  We can look at the annual median sales price per foot of every recorded condo sale since 1997*.  This is a broad market analysis including every downtown condo tower.

When we do this, we observe the moving average for trailing five years of appreciation at its lowest was 14.75%.

In 2014, specifically, the typical downtown condo owner would have seen appreciation of 63.62% over the previous five years.

-Jude

Austin condo performance over five years, moving average

Austin condo performance over five years, moving average

*NOTES to analysis:

1) Reflects ALL transaction records for condos in MLS Area “DT” since 1997.
2) some early records did not have correct square footage, so the data is normalized by constraining the data set to condos with a square footage range of 100-12,000sf.

Adios Taco Cabana

Adios Taco Cabana

taco-cabana-exterior-211-s-lamar

Just about two years ago, AustinTowers.net reported on news about a third iteration of a plan to redevelop the Taco Cabana site at 211 S Lamar – the site adjacent to the Bridges on the Park condos.

Since then, there have been additional changes, including a change of ownership to MLB pitcher Huston Street.

approximate outline of 211 S Lamar Site

approximate outline of 211 S Lamar Site

Signals of development can be found in many forms, including spray-painted awnings from the building being used as “closed” signs.

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Tower Vs. Tower: AT’s Austin Condo Cheat Sheet

Tower Vs. Tower: AT’s Austin Condo Cheat Sheet

Austin Condo Cheat Sheet

There’s a lot of disparate information on the “internets” about Austin’s condo towers, so we observed it could be useful to see the basics on a single page.  This is information we have presented in other forms across the site.  Hopefully readers can use this as a simple, basic cheat sheet.

This is a handy “at-a-glance” guide to condos for sale in downtown Austin, and a good way to wrap your head around all of the condo communities that exist and glean the vital information about each.

Austin Condo Cheat Sheet

Austin Condo Cheat Sheet

Also, if you’ve not checked out the AustinTowers.net condo buyer FAQ, go ahead and give it a look.

We hope these numbers help – but we do want to caution that the numbers / stats we’re putting out below are inclusive of only condo sales that happened on the MLS (private transactions and new construction sales, like developer-owned units The Austonian, aren’t included).

We also caution readers that these stats are inclusive of all the condo buildings that had sales posted on the MLS last year – it’s important to remember that there are sometimes big variations in pricing from unit to unit within buildings, as there are nuances between the units, such as view, floor number, upgrades, etc.  This spreadsheet represents the very tip of the iceberg on things you should consider when purchasing or listing a downtown austin condo for sale.

If you want custom, detailed information on a specific residence, you can always call or email us directly.

-Jude

Downtown Austin Tid-Bits

Downtown Austin Tid-Bits

plat-map-rainey-downown-austin

Sometimes stories start small, or may seem inconsequential, then later emerge as a topic that has a major impact on the City. It’s in that light that we present some items that are on Austin Towers’ radar this week.

Signals of tower development at Red River and Davis

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No, this isn’t Waller Park Place; rather, this is the assemblage to the east, just across Red River Street. It has been speculated since 2012 that the site at 91 Red River and adjoining lots are making moves, and the fact that the house at 91 Red River is being relocated is just another indication.

Earlier this week we observed the vegetation around the property being cleared. The house is purportedly being moved to 2791 FM 425, Thorndale, TX (the previous request to entirely demo it has been withdrawn). There’s an active demolition request for the neighboring home at 91 1/2 Red River, too.

Another big sign of imminent development on this block is that an LLC controlled by Endeavor Real Estate already owns the parcels at 93 Red River and 93 1/2 Red River. And, 91 and 91 1/2 are controlled by parties who have are very involved in downtown Austin real estate development.

Google will be at Fleming’s for SXSW

logosYou can file this under not that surprising, but Google will be buying out Fleming’s for SXSW this year. We have verbal confirmation of this from an inside source, as well as knowledge of a temporary right of way permit being requested for a Google Play sign at Fleming’s for March 11-20th. Fleming’s has one of the MOST “prime” locations for SXSW Venue Rental, so it makes complete sense that the technology giant will be controlling the space during the festival this year.

Allen Edmonds Shoe Store wrapping up finish-out work in the new 501 Congress office building

501 Congress, a newly remodeled office building near the City center, is well on its way. While Dropbox, who will reportedly be leasing around 60,000 sf of the building, was the major newsmaker for the site, there are other interesting tenants that will inhabit the space. One is the men’s shoe and accessory brand, Allen Edmonds. The store will be a nice complement to the nearby Keepers concept at 515 Congress, not to mention the Brooks Brothers store on the south west corner of 6th and Congress.

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Lonesome Dove Western Bistro moving forward at 419 Colorado

Last year, the ABJ announced that Kenichi was closing at a Ft. Worth concept called Lonesome Dove Western Bistro would be taking over the site. The remodel is continuing, and the exterior should have a remodeled look for the new concept . The dinner menu at Lonseome Dove Western Bistro is interesting, to say the least. Try LDWB for dinner, then boot-scoot over to the new Concrete Cowboy bar at 719 W 6th (where Molotov used to be) for a truly Texas themed night on the town.

The "boot scoot" trail

The “boot scoot” trail

Aspen Heights Apartments at 805 Nueces seemingly moving forward

Our sister site, Downtown Austin Blog, originally broke the story about this site when it was slated to be The Bremond, in late 2010. The Bremond concept did not end up happening, but we got wind of another concept in late 2013 called Aspen Heights Apartments. Aspen Heights is also the financing partner behind the Independent Condos. City records indicate things are moving forward with Aspen Heights Apartments, though the project itself is still being marked as “in review.”

Drawings by Rhode Partners, as submitted to Design Commission in 2013

Do you have questions regarding what’s happening at a particular site downtown? Leave your comments below!

New Travis County Courthouse Proposal: Wrong Place, Wrong Time

New Travis County Courthouse Proposal: Wrong Place, Wrong Time

downtown-austin-travis-county-courthouse-massing

Travis County is proposing a Courthouse to be built facing into Downtown Austin’s most central and celebrated park, Republic Square Park.  And, residents and visitors alike should not be thrilled with the current proposal.

Some background, per consultants hired for the project:

Currently Civil and Family Court proceedings for Travis County are occurring at the Heman Mariott Sweatt Courthouse, a building erected in 1931.

heman-marion-sweatt-downtown-austin

taken from Google Maps streetview

This current courthouse is lacking space needed, infrastructure, and general design and layout / circulation for those with dealings in the Court (particularly to ensure safety of those filing claims against their aggressors).  More people, more problems, so to speak, and Austin needs adequate court space to properly ensure justice is being done in as timely of a manner as possible.

We get it.

What we don’t get is why Travis County feels the need to use some of the most prime real estate in Austin to build a silo of a structure that in no way relates to the neighborhood it will inhabit – a neighborhood with the SPECIFIC goal of being pedestrian-friendly and engaging.  The current site selection sits just south of Republic Square Park.

Apparently, there will be two phases of construction. The first phase will be the actual Courthouse (the structure that will face into the park), and the second phase will have some other use, like County offices (with some space potentially being leased to private entities, etc).  In the interim, the County hopes to make the unused portion of the lot “green space.”

travis-county-courhouse-current-site-downtown-austin

 

downtown-austin-interim-space-lot-travis-county-courhouse

We can think of a few reasons NOT to build the Travis County Courthouse in this location.  Here are a couple:

  1. There are better locations for the site.  The population center of Austin is north of the University of Texas, near Burnet and North Loop.  One proposed alternative by those in the know is the Travis County owned site at 290 at I35 next to the Highland Mall ACC Campus location.
  2. After 5pm, this proposed 14 story box becomes an urban void.  A full city block – one of the best in the entire city – sitting idle for 12+ hours a day.
  3. There are much better and higher uses for the current site sitting just south of Republic Square park.  Pretty much any use that can remain open, active, and engaging after 5pm is better.

There is only one real reason we’ve heard to place the Courthouse at 4th & Guadalupe: to reduce the need to transport those in custody to another location (we have requested exact numbers on that, but until told otherwise, cannot believe the impact would be THAT significant).

Location qualms aside, the $300 million 14-story beige box proposed ignores the opportunity cost of placing a silo in the middle of downtown.

Apparently, retail was considered for part of the ground floor, but then somehow decided against, because of “security concerns” and lack of compelling evidence that retail was a sustainable use for the space.

OK, let’s say that the security concerns were real and retail was not a sustainable use for ground floor space in the Courthouse – so put the building elsewhere that street level retail use hasn’t been planned for years!

The security concerns described (simply ensuring no dangerous objects or material are able to enter the Courthouse through the retail space by shipping or customers coming from the exterior) seems easy to overcome.   With the new Hotel Zaza and thousands of dwelling nearby, notably Plaza Lofts, W Hotel, 360 Condos, AMLI on 2nd, Gables, and more, it only improves the chances that a retail use will be highly successful in that location.  Currently, the County intends to use a portion of the ground floor as “event space.”  Huh?!

I’m ready to be convinced otherwise, but on its face, the concept that retail couldn’t survive in this location is bunk. It might not fit the mold of a courthouse, and that’s why this location has higher and better uses than a courthouse.

We don’t have renderings yet, but a massing was provided, with some general info on the structure:

downtown-austin-travis-county-courthouse-massing

Bottom line is the new Travis County Courthouse as proposed ignores more than two decades of effort by myriad people working to improve the experience of living, working, visiting, shopping, dining, and generally desiring to be in downtown Austin.

Luckily, this particular project can’t be funded without passing the bond election in November.  Unless the location is changed, or the proposal for the current site is drastically altered to integrate into the fabric of the City, we’re voting “NO” in November.

-Jude

Something is finally happening at 220 S Congress

Something is finally happening at 220 S Congress

220sCongress

Heading northbound on Congress Avenue, just before you cross over Lady Bird Lake into Downtown Austin proper, you’ve probably noticed a vacant commercial building on your left.

This is the one:

220 S Congress-downtown-austin

220 S. Congress taken from Google Maps

We’ve certainly noticed it and marveled at how such a high-profile location could continually remain vacant for such long periods of time.  The last use I remember in the space was a modern furniture store called “Your Living Room”, which I believe shut down in 2008 or 2009.

So we are thrilled to find out something is being done with the space.

AustinTowers.net recently received a press release that Cielo Property Group will be heading up a major renovation of the 25,000 sf three-story building, which was originally built in 1936 and has great historic features such as exposed brick, metal trusses, and a general raw, industrial aesthetic. It reminds us of Brazos Lofts (except 220 S Congress will be for commercial use only, no residential is planned at this time).  Cielo plans to retain the character and feel of the building.  The renovation looks to be somewhat light for the exterior of the building, and will reportedly focus on replacing outdated infrastructure and creating ways to make the space divisible for multiple businesses. Gensler is the architect.

Interior renovations start this week, and Cielo expects to have the building fully renovated and leased by the end of 2015.

We’re told that the building was bought by Cielo in December 2014.  Looks like an LLC governed by a corporation headed by the principal of Reagan Outdoor Advertising owned it before (and they still own the billboards, apparently). The billboards will remain on the site after the renovation.

In our mind, the project, by virtue of it’s stellar location if nothing else, will be a home-run.  Per Cielo’s press release:

Multifamily projects currently underway in the immediate vicinity include The Catherine, a 300 unit luxury apartment tower developed by StreetLights Residential at 214 Barton Springs Rd. and Broadstone at the Lake, a 220-unit community by Alliance Residential on the former Run-Tex site at 422 Riverside Dr.

With that much residential nearby, plus hotel traffic from the likes of the Hyatt, 220 S. Congress will do great with commercial activation.  CBRE is listing the property for lease, quoting $36 /SF/Year + NNN.

Take a look at the renderings from Gensler:

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We’ll keep you posted as we learn more!

Hotel Proposed for 12th and Red River in Downtown Austin

Hotel Proposed for 12th and Red River in Downtown Austin

1201 Red River - Capitol View Corrider

Another new hotel is proposed for Downtown Austin, and is now going through the permitting process.  This one is especially newsworthy given that the location at the northeast corner of 12th Street @ Red River is in the heart of where many hope to establish an “Innovation District” – a district that will be anchored to the under-construction medical center.

Seeing potential additional growth in the northeast sector of downtown is good, seeing as housing supply is currently completely absent.  All the cranes in downtown are a little deceptive (as we’ve said before).  Downtown Austin’s commercial property market is finally catching up with the housing boom of 2006 and we’re seeing more commercial buildings like hotels and offices being built.

This particular hotel, if it comes to fruition, will be called Waterloo Park Tower (or Waterloo Towers Hotel, we’ve seen both names mentioned), and is currently working its way through the permitting process with the City of Austin, having recently submitted the site plan for approval.

The .436-acre tract of land at 12th and Red River currently hosts the Brick Oven Pizza restaurant, which is still operational, and has been at the site for over 30 years.

Summary of what we know about the hotel proposal:

  • Site: .436-acres (19,020 sf)
  • Proposed Building Footprint: 11,168 SF
  • 260 Hotel Rooms with “associated parking”
  • 3,700 sf restaurant use on ground level
  • Access / Entry point on 12th Street
  • 22 Stories, up to ~150,000 sf
1201 Red River - Capitol View Corrider

Austin’s Capitol View Corridors (CVCs) where building height is limited

The forums have been abuzz about the proposed height and size of the development, and given the location and proximity to the Capitol, we were personally a little surprised this height would fly. However, after a precursory check with the Capitol View Corridors map, it is indeed allowed. But they just narrowly are out of the restricted zones.  Well done, Waterloo Towers Hotel.

To get a sense for what 22 stories could look like in that area, we created a crude massing of the property using a 13 foot floor-to-floor ceiling height, yielding a height of 286 ft.  As you can see, there’s nothing currently that tall in the area.

waterlootower-crude-massing

AustinTowers’ crude massing to show how tall 22 stories could be

The ABJ reported on this proposed tower at the end of 2012 (in the context of the land owner requesting a zoning change for the lot along with the adjoining tract at 1209 Red River from CS-1 to CBD – which was granted), and now it’s one step closer to happening.

However, the ABJ reported in 2012 that there’s still a long way to go, and that, as of their report, a developer or financial backer had yet to be confirmed for the project. And we didn’t see any mention of another party that would be the developer in the submitted plans.

Without a hotel operator attached to the project, this process is intended to entitle the property and then find the backing to get it built.

Site currently:

We’ll be keeping our eye out and will update you as more information develops!

Will The Independent Condos Become Austin’s Tallest Tower?

Will The Independent Condos Become Austin’s Tallest Tower?

Model of The Independent by Rhode Partners

Confirmed via email earlier this week, residents of downtown Austin can expect a new neighbor at the northeast corner of 3rd Street & West Avenue: The Independent.

A 400-unit condominium project proposed by a partnership between Constructive Ventures and Aspen Heights, details of the The Independent’s height and number of stories have not been confirmed.  There are signals that it will be 60+ stories and at least 675ft tall.  Extra height could come from architectural details.

At 683 feet, the Austonian on Congress Avenue, is currently Austin’s tallest building.

A photograph of a model of The Independent, posted on SkyscraperPage, reveals an articulated point-tower design.  It is not clear, though, if this is an early or recent model.

Austin Towers' crude massing of The Independent, showing nearby developments

Austin Towers’ crude massing of The Independent, showing nearby developments

Given the site’s location, set amongst other tall buildings like Spring360 Condos, and Seaholm Condos, it makes sense that The Independent would be built taller in order to attract buyers demanding views, and several residences on higher floors would have “protected views” of Lake and Hill Country.

Rhode Partners with model of The Independent, showing slight differences from the other model.