AUSTIN | Projects & Construction II

[Mdlx]

What are the chances we see Seaholm/GWTP start in 2010?

[Catutx]

Spring Austin Partners & Hensel Phelps Construction invite you to join them in celebrating Fat Tuesday & the topping out of Spring Condominium.

Tuesday, February 24th, 5 PM to 8 PM
Spring Condominium, 300 Bowie St, 41st Floor
Cocktails & Mardi Gras fare with music by DJ Paul Minor
Business Casual Attire

Parking Northeast corner of 5th & Bowie
call for handicapped special access
RSVP: [email protected] or 472-8118

As avid building lovers, we'd love to see you there.

Catherine Thomas

[MichaelB]

Originally Posted by chewy

Hey gang. Loooong time lurker and occasionally I see a post I can shed some light on, so I decided to go ahead and sign up and give my occasional 2 cents.

Today's 2 cents:
The La Vista building is tentatively called "Fondren". The Sutton Company bought it from the original folks. It will no longer look as bad as the original design. More contemporary with a potential lighted feature on the sides similar to the green features on AMLI on 2nd.

Ah! Isn't it nice to shed the cloak of Lurk! So, do tell, redesign, eh? All I can say is "Hallelujah" ! Do you know who is doing it? Do you know if it will maintain a residential component?

[MichaelB]

Side note: Had a conversation with a developer recently that was interesting. He said this is a great time to get projects contracted because costs are down. Labor is down, etc. So some companies with financial savvy may actually be able to take advantage of this economic situation!

[priller]

Originally Posted by Catutx

Spring Austin Partners & Hensel Phelps Construction invite you to join them in celebrating Fat Tuesday & the topping out of Spring Condominium.

Cool! I missed the Austonian half-way party, so I'll be sure to make this one.

Also, btw, I saw they had a tree up on Spring. A palm tree, actually. Also had the tree up on the Gables next to it.


On edit: The Spring tree:




The Gables:

[crewer]

Oh brother...
Just caught this article in the Atlanta Business Chronicle:

Condo owners lose view and sue
Atlanta Business Chronicle - by Lisa R. Schoolcraft Staff Writer

Some residents who bought pricey high-rise Midtown condos from condo king Jim Borders say he robbed them of their city views when he built another tower across the street.

The eight residents on Dec. 31 sued Borders and Novare Group Inc., saying the south-facing condos they bought in the 26-story TWELVE Atlantic Station tower lost their view of downtown Atlanta — and part of their value — when Novare built the 46-story The Atlantic directly across 17th Street.

Novare completed TWELVE Atlantic Station in 2005. The Atlantic is still under construction.

The residents want their money back. Their condos ranged from the 17th floor up to the penthouse and cost from $200,000 to nearly $900,000, said Hennan Ehrenclou, an attorney with Weinstock & Scavo P.C., who is representing them in Fulton Superior Court.

So let me understand this. You buy a condo at the height of the market in an urban setting where developments are rising at a lightning pace. Then when the market goes south, simply sit back and wait for the inevitable, like the construction of another building that blocks your view, then sue and walk away with every penny you put into the place or more.

Yeah right. Would like to see them pull this stunt in NYC or Chicago!

[Northcrossed]

Originally Posted by priller

Also, btw, I saw they had a tree up on Spring. A palm tree, actually. Also had the tree up on the Gables next to it.

Aren't palms actually members of the grass family? I know bamboo is. The point of the tree is for the spirits in the wood to confer good luck on the building. There's no wood in a palm, just layers of leaves, so no good luck. Bad Juju....

[MichaelB]

Originally Posted by crewer

Oh brother...
Just caught this article in the Atlanta Business Chronicle:

Condo owners lose view and sue
Atlanta Business Chronicle - by Lisa R. Schoolcraft Staff Writer

Some residents who bought pricey high-rise Midtown condos from condo king Jim Borders say he robbed them of their city views when he built another tower across the street.

The eight residents on Dec. 31 sued Borders and Novare Group Inc., saying the south-facing condos they bought in the 26-story TWELVE Atlantic Station tower lost their view of downtown Atlanta — and part of their value — when Novare built the 46-story The Atlantic directly across 17th Street.

Novare completed TWELVE Atlantic Station in 2005. The Atlantic is still under construction.

The residents want their money back. Their condos ranged from the 17th floor up to the penthouse and cost from $200,000 to nearly $900,000, said Hennan Ehrenclou, an attorney with Weinstock & Scavo P.C., who is representing them in Fulton Superior Court.

So let me understand this. You buy a condo at the height of the market in an urban setting where developments are rising at a lightning pace. Then when the market goes south, simply sit back and wait for the inevitable, like the construction of another building that blocks your view, then sue and walk away with every penny you put into the place or more.

Yeah right. Would like to see them pull this stunt in NYC or Chicago!

On the surface, I agree with you. However, since this is about the same company building the "sight blocking" building, I could totally see a scenario.It is conceivable that Novare lead buyers to believe they controlled the property to be built on and "suggested" the view would not be blocked. Or that what they would build would not block certain views....and then changed their mind. I have been in sales situations in Austin where I have heard agents out and out lie about what could be built on adjacent property....or, I guess maybe convinently misinformed! It happens. I had it happen when I took friends to look at Austin City Lofts and Spring both.

I agree with "buyer beware". When I bought in a high rise, I research what could be built around me. However, intentional misrepresentation happens....more often than I liked to think. If it is the case....and I know this is all a WAG (wild ass guess) ....they should sue. And I hope they win.

[alexjon]

Originally Posted by crewer

So let me understand this. You buy a condo at the height of the market in an urban setting where developments are rising at a lightning pace. Then when the market goes south, simply sit back and wait for the inevitable, like the construction of another building that blocks your view, then sue and walk away with every penny you put into the place or more.

Yeah right. Would like to see them pull this stunt in NYC or Chicago!

http://seattlepi.nwsource.com/local/342003_cosmopolitan03.html

More likely than you think.

[AustinGuy]

Originally Posted by MichaelB

On the surface, I agree with you. However, since this is about the same company building the "sight blocking" building, I could totally see a scenario.It is conceivable that Novare lead buyers to believe they controlled the property to be built on and "suggested" the view would not be blocked. Or that what they would build would not block certain views....and then changed their mind. I have been in sales situations in Austin where I have heard agents out and out lie about what could be built on adjacent property....or, I guess maybe convinently misinformed! It happens. I had it happen when I took friends to look at Austin City Lofts and Spring both.

Yes, and Novare already has plans to change/block views out of the 360 with the two other towers they want to build nearby the 360. Hopefully that information was disclosed to the buyers of the affected units at the 360.

Not sure if it will even matter since those towers appear to be on hold.

[hookem]

Originally Posted by Northcrossed

Aren't palms actually members of the grass family? I know bamboo is. The point of the tree is for the spirits in the wood to confer good luck on the building. There's no wood in a palm, just layers of leaves, so no good luck. Bad Juju....

FWIW, I'm 99% sure they had another tree on top of the what looked like one of the final full floors back in Dec/Jan. It wasn't a palm, looked like the typical christmas tree and it was lit up (so maybe that counts as their good luck tree). I don't know if anyone got a picture of it, but surely someone else saw it. Maybe it was just a christmas decoration, but I saw it several times from the YMCA parking lot...

[shanny]

*****Austin Towers*******

- The W Hotel & Condo plans remain unchanged.


however...

According to the developers, plans for Block 21 -- the large second street development featuring the W Hotel & Residences -- have been revised to include 35,000 feet of office space. Assuming that the size of the project remains the same, office space will account for about 3.5% of the planned one million square foot multi-use project. This is the first new office space to be added downtown in a few years

The project update also included the following new facts:

- The W Hotel & Condo plans remain unchanged.

- So far, 44% of condo units are accounted for -- a number virtually unchanged from the 45% under contract as of 12/1/09. According to the developers, sales have practically stopped since the beginning of the economic crisis in November. With delivery 2 years out, the developers believe they have plenty of time to sell the remaining units.

- The project is proceeding on schedule: the first floor should be poured within the next few weeks

- The size of the Austin City Limits theater may be increased from 2,200 to 2,500 square feet

The $295 million project, to be located directly behind City Hall, will be an important retail and entertainment anchor to the blossoming 2nd Street district.

[Northcrossed]

Spring's palm will protect it from evil spirits after all (according to wikipedia):

"The inflorescence is a panicle or spike surrounded by one or more bracts or spathes that become woody at maturity."

(I got woody at maturity too, but that's a different story.)

[Jdawgboy]

Honestly I can't see how the W hotel will be the same size if they are adding office space and increasing the size of the ACL venue. If it was to stay the same floor height that means they are taking from most likely the condo section of the building. I doubt they are taking away from the hotel since hotels are most in demand in downtown.

[Northcrossed]

Originally Posted by Jdawgboy

Honestly I can't see how the W hotel will be the same size if they are adding office space and increasing the size of the ACL venue. If it was to stay the same floor height that means they are taking from most likely the condo section of the building. I doubt they are taking away from the hotel since hotels are most in demand in downtown.

It's a matter of semantics. They're referring to the W as a span of floors within the building (notice they still call the entire building "Block 21"), and you're referring to the W as the entire building. Their Block 21 is getting taller by one floor and their W has the same number of floors as before. Your W is also getting taller, but that's not how they define their W.

[Northcrossed]

As W hotel goes up, developer seeks backup money

Developer says it's being cautious because of financial condition of a key lender.
By Shonda Novak

AMERICAN-STATESMAN STAFF

http://www.statesman.com/business/content/business/stories/other/02/12/0212stratus.html

Until now, work on the W Austin Hotel and Residences downtown has been going on largely out of view, as workers built a three-level underground garage.

That is scheduled to change within the next week or so, as aboveground construction begins on the 36-story hotel and condominium project north of City Hall. The project will also include a venue for KLRU's "Austin City Limits" program.

Developer Stratus Properties Inc. says the $300 million project is on track and that it has nonrefundable deposits for 45 percent of the 159 luxury condominium units. But Stratus also is seeking backup financing because of the fragile financial condition of Corus Bankshares Inc., one of the project's main lenders.

Chicago-based Corus has been hit hard because of a rising number of nonperforming loans. The bank recently said it is searching for new capital and that it expects to be turned down for help from the Treasury Department's bank bailout program.

Stratus chief executive Beau Armstrong said Corus has assured the company that it intends to fulfill its commitment to provide $165 million in financing for the project, with the first draw due in November.

But out of prudence, Armstrong said Stratus has retained Holliday Fenoglio Fowler LP to seek replacement construction financing should Corus become unable to meet its commitment.

"We're just trying to be cautious," Armstrong said. "Given this uncertain environment, we don't want to get caught flat-footed, so we're being very diligent about our project and the associated financing."

Corus is a big lender to condominium projects around the country, including in troubled markets such as South Florida. Last week, Corus reported a fourth-quarter loss of $260.7 million and revealed that more than a third of its $4.1 billion in loans were nonperforming.

Corus did not return a call seeking comment, but last week, its chief financial officer, Mike Dulberg, told The Wall Street Journal that the bank was exploring options, including selling all or part of the bank or finding a strategic investor.

"This is a difficult time, but this happens to be a good project that's performing very well," Armstrong said. He said Stratus has advised Corus of its plans.

In addition to Corus' commitment, Stratus has a private equity fund partner, the $3 billion Canyon-Johnson Urban Funds LLC, headed by former NBA star Earvin "Magic" Johnson. The Canyon-Johnson fund is investing $74 million in the project, and Stratus is putting in $51 million.

Even if alternate funding doesn't materialize, Armstrong said Stratus and Canyon-Johnson have the resources to finance the project themselves until the markets stabilize, adding that with the project still two years from completion, "we have ample time to put the proper capital structure in place."

The hotel, entertainment venue, 35,000 square feet of office space and the first condominiums are expected to be completed in 22 months.

"Fortunately, we have a great mixed-use project in a great city," Armstrong said, adding that there is prebooking interest for the hotel, preleasing activity for the retail and office components and strong interest in booking the entertainment venue for private events.

[priller]

Wow, a third of their loans are "non-performing".

[priller]

I noticed stuff poking up above street level today at the W. I'll upload photos this evening.

Also, I really don't like that the new buildings on 5th near Mopac have "turned their backs" on Cesar Chavez street. I realize that they're facing 5th, I just wish they didn't have to completely brick up the back side.

[AustinGuy]

Originally Posted by Northcrossed

It's a matter of semantics. They're referring to the W as a span of floors within the building (notice they still call the entire building "Block 21"), and you're referring to the W as the entire building. Their Block 21 is getting taller by one floor and their W has the same number of floors as before. Your W is also getting taller, but that's not how they define their W.

Could it be that they are reducing the number of condos to make way for this additional office space? It seems as if the condo aspect is the one they are more concerned about at the moment judging from the article that says sales have halted since Nov.

[Mopacs]

Originally Posted by priller

Also, I really don't like that the new buildings on 5th near Mopac have "turned their backs" on Cesar Chavez street. I realize that they're facing 5th, I just wish they didn't have to completely brick up the back side.

I guess the same could be said for the Texas Monthly building along I-35, to an extent. Though in that case, it (particularly the parking garage) backs up to the upper decks. Plus, I believe the upper floors 2 or 3 floors above the garage have east-facing windows.