AUSTIN | Projects & Construction II

[crewer]

Originally Posted by GoldenBoot

“Distorting?” I don’t know if I would go out on a limb and say that investors “distort ‘true’ housing demands.” If you really think about it, all home owners are investors in their property; even if it is their homestead. Nobody buys a home out of necessity.

...Also, there’s something that people seem to be forgetting here when discussing the number of proposed and under construction units in this market…the delivery times. Timing is everything, and most of the units in said projects will be delivered over a several year period, i.e., between mid-2007 and the end of 2010 (for the projects already on the table). That being the case, demand should still outweigh supply. On the other hand, I would agree that if every project was planned to deliver their units within the same 6-9 month period, I’d agree that there may be an over-supply situation.

Sorry, Goldenboot, but I disagree. Distorting is EXACTLY what investors do to a market, particularly when there's a large number of them. And when I speak of investors, I'm not talking about homeowners who move into their units for the purpose of "living". But rather I'm referring to those who buy multiple units for the simple sake of raking in quick profits on resales. The local papers here in DC have been reporting on this for the past year as to how developers and local economists paid little attention to the affects that investors were having on the housing demand. And now that there's no profit left to be made, the investors have fled leaving behind empty overpriced condos in sparsely populated developments that few "true homeowners" can afford.

I don't know what's going to happen in Downtown Austin. I applaud all of the construction and am elated that FINALLY the city is pulling people into the core of the city to make it a 24/7 environment. But unless we start seeing more job creation in the downtown sector (i.e., several corporate headquarters into downtown), then what I expect to see is a sharp rise in demand followed by a sharp decline.

Regarding your comment about the timing of the projects, I totally agree with you there. But keep in mind that while everyone is timing the developments in downtown, there's rapid development of condos going up all over the city. It will be interesting to see how condo developments in places like The Domain, Mueller, that Airport Blvd. development, and all the other projects scattered throughout Austin will impact demand downtown, particularly as downtown because even less affordable than it currently is.

it will also be interesting to see what influence the proposed mortgage regulations will have.

[GoldenBoot]

Originally Posted by Jdawgboy

I wonder how tall they are going to build on this project?

New zoning regulations currently dictate that the building cannot exceed 318-320' in height.

[priller]

BTW, I went looking for some infor on the Legacy @ Town Lake project, and I found this rendering at the Legacy Partners web site:



It looks quite different from the others I've seen. They have a list of floor plans, too. Is this new or outdated?

[sakyle04]

^ outdated. the new one is the one above with the angled garage.

[Strayone]

This may be the first time I've seen this buildings rendering. The site is a work in progress, but in the brochure there are lots of marketing analysis that you wouldn't expect to see, charts etc. I think Jdawg said something about clearing the site, so it looks to be going forward. Man this is crazy, are there enough cranes available for all these projects.

[priller]

Originally Posted by sakyle04

^ outdated. the new one is the one above with the angled garage.

Good, I kind of like the crazy angles.

[ATXboom]

http://www.austinchronicle.com/gyrobase/Issue/column?oid=oid%3A473706

Interesting article in the Austin Chronicle discussing timeline, size and location of the new central library. Bascially located where green water treatment plant currently is... streets will be re-gridded and the plant moved. City hopes to have library complete by 2012.

[Jdawgboy]

Yea they have definatly started moving dirt on the Legacy site. I can't wait to see the additional cranes go up for this project and Spring. Any idea when the Four Seasons Residency tower could break ground? Any news on the Marriott project? I havn't heard anything in a long time on that.

[Strayone]

I posted this in the update section as well as here. Ok this is second hand news but I believe it to be true... from a good source.My source says the Dog and Duck will probably move when their lease is up, they may even build their own place. Where ,when etc. I don't have that info. But my source is a good friend of Susan, and I trust her for info. Also it sounds like she has a partner in the business, this might be well known I don't know, I haven't been in the D&D for some time. I hope this is 100% correct, but from what I've heard the rent is just getting too high! I am posting this because someone has asked repeatedly, and I was able to ask my client what she knew of the situation. Susan's such a decent person, I hope the best for her, and I will be stopping in soon to say Hi!

[priller]

Went to the Farmer's Market this morning. Very hot today! And my wife was feeling a bit sick, so I just took a few photos. Here you can see the glass going in on the 360 (Intel rubble in the foreground):




And the Monarch, looking tall:

[KevinFromTexas]

I didn't see anyone post this, so I guess I will. I believe the city council had approved the tower at The Domain, (Twelve Domain), for 308 feet tall. At that height, with 28 floors, it would be the tallest outside of Downtown and Central Austin. Technically downtown stops at 19th street, so north of that is Central Austin, which is where the UT Campus and The Drag are. For now the Dobie Center and UT Tower are the tallest outside of downtown, but Twelve Domain will be far and away the tallest outside of Downtown and Central Austin by atleast 150 feet.

Goldenboot, no, this tower will not replace the Westin hotel. Infact, there will be atleast three hotels at The Domain. 28-story Twelve Domain, the 8-story Westin and the 6-story Aloft Hotel. This is all according to this article. Twelve Domain will also have condominiums.

Twelve Domain has a website:
http://twelvedomain.com/

Look for the rendering here:
http://www.novaregroup.com/portfolio_twelve_domain.html

From the Austin American Statesman
http://www.statesman.com/business/content/business/stories/realestate/05/12/12domain.html

REAL ESTATE

28-story condo/hotel set for Domain area
New hotel called Twelve would join plans for two others.

By Shonda Novak

AMERICAN-STATESMAN STAFF

Saturday, May 12, 2007

Atlanta-based Novare Group plans to build a 28-story condominium and hotel tower in North Austin, the tallest building outside of downtown, as part of the massive Domain project.

Novare and its Austin development partner, Andrews Urban, plan to break ground on the tower, Twelve Domain, in the spring of 2008.

It would be part of a project that is expected to eventually transform 176 acres into 8 million square feet of residences, hotels, offices and stores, including Austin's second Nordstrom.

The project, near North MoPac Boulevard (Loop 1) and Burnet Road, is being developed by Austin-based Endeavor Real Estate Group LLP.

The tower will house about 360 condominiums atop a boutique hotel called Twelve, which Novare developed.

The only existing Twelve hotel is in Atlanta at Atlantic Station, but two more are under construction, a second one in Atlanta at Centennial Park and the other in Charlotte, N.C. The Twelve hotel in Atlanta made Condé Nast's 2006 list of the top hotels worldwide.

Among other features, the rooms at the Twelve hotel in Atlanta have computers, dubbed Ghosts, that act as concierges, allowing guests to make dinner reservations, request valet or housekeeping services in addition to browsing the Internet.

Twelve will join a second hotel planned for Endeavor's project, an Aloft, a boutique brand of Starwood Hotels & Resorts Worldwide Inc.

The six-story Aloft is being developed as a joint venture between Open Hospitality Partners, a Dallas-based development firm, and Lodgeworks of Wichita, Kan.

Groundbreaking for the Aloft hotel is expected late this year, and it could be open by late 2008, said Mark Masinter, a partner with Open Hospitality.

Conceived by the Starwood team that developed its upscale W brand, the first three Aloft hotels are under construction in Rancho Cucamonga, Calif., Lexington, Ky., and the Dallas suburb of Las Colinas. Starwood plans to have 500 Aloft hotels open worldwide by 2012.

The Austin Aloft will be "a fun place to stay," Masinter said, offering business travelers "a boutique (hotel) experience." The hotel, Masinter said, will have a "cool bar," automated check-in services and rooms starting in the mid-$100-a-night range.

The project is just east of the high-end Domain shopping center, whose anchor tenants include Austin's first Neiman Marcus.

A third hotel, Austin's first Westin, is planned in the next phase of the Domain by Simon Property Group, the nation's largest mall developer.

The Domain was the brainchild of Endeavor, which later brought on Simon as a partner. The outdoor shopping center, the first new regional mall in the area in a dozen years, opened in March with dozens of high-end retailers atop 390 luxury apartments.

Simon plans another retail project just south of the Domain, near its existing Shops at Arbor Walk also along MoPac.

Simon has not said when the Westin will break ground.

[crewer]

Originally Posted by KevinFromTexas

I didn't see anyone post this, so I guess I will. I believe the city council had approved the tower at The Domain, (Twelve Domain), for 308 feet tall. At that height, with 28 floors, it would be the tallest outside of Downtown and Central Austin. Technically downtown stops at 19th street, so north of that is Central Austin, which is where the UT Campus and The Drag are. For now the Dobie Center and UT Tower are the tallest outside of downtown, but Twelve Domain will be far and away the tallest outside of Downtown and Central Austin by atleast 150 feet.

Density is the key, and I am very happy to hear the city approved this. It would have been appalling if they hadn't since there are no view corridor issues in The Domain, and there are no surrounding neighborhoods that this development will affect, other than traffic, perhaps. I hope this approval will influence other Domain developers to consider building higher.

There is one relatively tall building located way up on 183 near 620. It's not anything close to 28 stories, but I remember everyone was surprised at its height when it was first built. Does anyone recall what building I'm talking about and its height? I think it's a bank or something.

[crewer]

Status Properties is being hammered right now by it's losses in real estate income.

The Austin-based real estate company earned $738,000, or 10 cents a share, in the quarter that ended March 31, compared with a profit of $18.2 million, or $2.36 a share, for the same period in 2006. Read on

Since they're developing Block 21, I'm wondering if this will influence the development, perhaps forcing them to put it on hold. Has anyone heard anything?

[ivanwolf]

Took some pics this weekend and I am not sure but I think no one has used this angle so here are a couple images. Check out all the cranes in the Panorama. I think there are 13 visable.
FYI - First image it really big.

Sorry that the image is kinda graining, but its a 3mp camera with an 8x zoom at quite a distance, and the hazy day did not help, I will try again on a better day.

[GoldenBoot]

Originally Posted by KevinFromTexas

...I believe the city council had approved the tower at The Domain, (Twelve Domain), for 308 feet tall...

...Goldenboot, no, this tower will not replace the Westin hotel. Infact, there will be atleast three hotels at The Domain. 28-story Twelve Domain, the 8-story Westin and the 6-story Aloft Hotel. This is all according to this article. Twelve Domain will also have condominiums...

Kev,

I never said that the TWELVE would replace the Westin, or any other hotel in the Domain project!

Also, the TWELVE tower has not, nor will go before the council for approval. Proper zoning is already in place and the Planning Commission will be approving (or disapproving) the site plan. Also, I believe the new zoning designation for the Domain will allow for a building of 318'-320'. I’m pretty sure Novare will be pushing that limit with the TWELVE Domain project.

As for the other hotels, only the Aloft has stated it’s height in stories (6). The Westin (or should I say Starwood Hotels & Resorts) has never publicly stated how tall their Westin is going to be. As a mentioned before, when Starwood announced plans for a Westin at the Domain, the City Council had yet to approve the new zoning for the property (The Domain mixed-use development)! What you see in the rendering on the billboard at the Domain is a conceptual rendering and nothing more at this juncture. The hotel could end up looking similar to that particular rendering, but I believe it will be different.

[GoldenBoot]

Originally Posted by crewer

Status Properties is being hammered right now by it's losses in real estate income.

The Austin-based real estate company earned $738,000, or 10 cents a share, in the quarter that ended March 31, compared with a profit of $18.2 million, or $2.36 a share, for the same period in 2006. Read on

Since they're developing Block 21, I'm wondering if this will influence the development, perhaps forcing them to put it on hold. Has anyone heard anything?

Not a chance at this point. Don't read too much into surface-level media reports. Stratus is still making a profit, albeit a smaller one than in 1Q06. Nonetheless, if there were real troubles on the horizon, I really don't think investment groups would be tossing $50 million, or ~20% equity, into a project, i.e., Block 21.


The following is an excerpt from said article:

"...Revenues totaled $6.2 million, down from $11.7 million in the year-earlier quarter. With development projects at various stages scattered mostly in the local market, Stratus' financials are largely a reflection of transactions, with little recurring income. Consequently, quarters with a lot of transaction activity tend to see larger jumps in revenue and earnings..."

[MichaelB]

Hey Priller..... Dig that shot of 360 with the intel rubble in the foreground! Nice frame!

[Mopacs]

Originally Posted by crewer

There is one relatively tall building located way up on 183 near 620. It's not anything close to 28 stories, but I remember everyone was surprised at its height when it was first built. Does anyone recall what building I'm talking about and its height? I think it's a bank or something.

The building you're referring to is the "Tower of the Hills" high-rise at the SE corner of US 183 and SH 45 (RM 620). Originally known as the "Bank of the Hills" tower (now Chase), it was built in 1987 and man it stood out, especially 20 years ago! I grew up in this area, so I was always impressed. Aspen Properties purchased the tower, along with several surrounding acres, will be developing into an office park over the next few years (aka. The Park at Aspen Lake.... which will include a small lake). The new SH45 corridor through southern Williamson County is on the verge of booming, from 183 to Parmer and especially Round Rock.

http://www.emporis.com/en/wm/bu/?id=towerofstreethills-austin-tx-usa

This photo was taken over 5 years ago. You wouldnt recognize the area now (massive 5-level interchange would be blocking this view today)

[StoOgE]

Yeah, I wouldnt worry too much about Stratus, alot of their losses in "earnings" is because they are investing it in new projects. They are still bringing money in, they just spending it more.

As far as that bank up on 183, it does stand out like a sore thumb, plus its real ugly.

[DTAustin]

Originally Posted by sakyle04

Good point, ATX.

It's funny to me that we want everything to be improved - to be the best it can be - except when it comes to these things with sentimental value.

Would we turn down the Austonian because it may put an historical dwelling in jeoparody? No. Would we turn down HOB because it may put a storied club in trouble? Sounds like it.

In the end, I really believe the competition will only make Austin's music scene stronger.

I think the Stubb's expansion plans started long before talk of the ACL/HOB venue. A big part of their expansion is moving the stage so it faces east instead of north, which will create more of a natural amphitheater effect and alleviate some noise issues with their northern neighbors. The additional venue that is being built in the old building directly to the north of Stubb's has also been talked about for a long time, but is finally happening. I know Stubb's and the former owners of Liberty Lunch were trying to work out a partnership for a long time for venue in that space, but it never happened. I think Stubb's is doing it on their own now.