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Originally Posted by DTAustin
The Railyard was an apartment complex with one owner when the two buildings where sold to / taken by the city for the Convention Center. The other two buildings were sold off as condos after that transaction. Thus it was an easy deal because the city only had to deal with one owner.
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Thanks for the update. I think we were both right here. I found this article in the Austin Business Journal from April 1998.
A downtown Austin apartment complex is converting to condominiums as voters consider a proposal that includes acquiring two blocks of the development for a convention center expansion.
Brothers Property Management Corp. sent letters to residents at The Railyard this month announcing the planned conversion and offering incentives for tenants to sign purchase agreements before a grand opening May 2.
That same day, Austin voters will consider a proposal to spend $135 million, backed by revenue bonds based on hotel taxes, to expand the Austin Convention Center and build flood control mechanisms on nearby Waller Creek. The convention center expansion would require the city to acquire more than half of the 200-unit Railyard complex between Third and Fourth streets.
Converting to condominiums will also raise the value of the property, which will probably affect the price the City of Austin pays for some of the units if it acquires Railyard property for expansion of the convention center, says one market analyst.
"His timing is very interesting," says Charles Heimsath, president of Capitol Market Research. Heimsath says as condominiums, the properties will have a greater market price either to individual owners or the city."
There were probably no tenants in those condos at the time of the city's purchase, but I bet the owner pocketed a substantial increase in profits having converted it over to condos prior to the expansion.
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