Austin | Wilson Tower (410 E. 5th) | 519 Feet | 44 Floors | On Hold

[KevinFromTexas]

It's easy to make a rendering. It's more to actually build. I'd rather have someone do it who can do both. And while the design is attractive, it's certainly not ugly, it also isn't exactly exciting and I wasn't sure it was supertall quality design. People are using the word stumpy, but that thing looked like a yard stick at the original height.

[The ATX]

Originally Posted by GoldenBoot

How do we know it's 44 stories now? Did I miss something? I noticed on the Wilson Tower website that they have downsized the number of units from 450 to 351. But, I didn't see anything regarding number of floors.

The floor count is from the rendering. We have no other source until the site plan is updated or the the project is revisited at a DC meeting.

[davidberko]

Booo! This is super disappointing. Holy —

[austlar1]

It was never going to happen. Construction financing is drying up all over the place. Another over-ambitious scheme from another over-ambitious developer. Kind of reminds me of the T. Stacy debacle way back in the day.

[ahealy]

Originally Posted by austlar1

It was never going to happen. Construction financing is drying up all over the place. Another over-ambitious scheme from another over-ambitious developer. Kind of reminds me of the T. Stacy debacle way back in the day.

100% -- I always wanted this to happen, but knew deep down it wasn't legit. Perhaps they can just move this design to the Domain. Signature tallest there. I'd be happy.

[ATX2030]

Originally Posted by ATX2030

SOMETHING SURE AS HELL IS NOT ADDING UP HERE!!!!!!

Wilson Capital answering the call for more housing in the Austin metro
Thousands of new apartments in the works

By Cody Baird – Staff Writer, Austin Business Journal
Apr 21, 2023

https://www.bizjournals.com/austin/news/...x_testVariant=cx_21&cx_artPos=1#cxrecs_s

A local developer of multifamily housing is turning a lot of dirt to cover the Austin area's shortfall in housing.

Since December, Wilson Capital — the firm behind downtown’s proposed tallest-in-Texas building, the 80-story Wilson Tower — has begun “meaningful work” on 708 apartments in the Austin area, with the latest groundbreaking taking place in March, founder and president Taylor Wilson said. The apartments join another 1,894 units Wilson Capital already has under construction, with another 885 units planned to start construction this year, including within Wilson Tower.

The under-construction apartments represent a significant ramping up of operations for Wilson Capital, which ranked No. 5 on ABJ's most recent list of the area's largest multifamily development firms. In 2021, it reported 1,191 units under construction or delivered.

The new housing will go a long way in helping the city meet its demand for more apartments, with the city needing more than 100,000 additional apartments by 2035, according to one estimate.

“Multifamily has proven to be a resilient asset class in a wide variety of economic climates, and we firmly believe in the fundamentals and long-term growth of Austin,” Wilson said in a statement.

There will be a period from 2025-2027 when fewer multifamily projects will be delivered, he predicted, and Wilson Capital’s goal is to be among the projects delivered in that time frame.

Wilson Capital’s most recent project is The Bower, which broke ground in Pflugerville at 705 E. Olympic Dr. in March. The 263,350-square-foot project will have 294 apartments ranging from 646 to 1,407 square feet. The Bower is expected to be delivered in the fourth quarter of 2024 with leasing largely occurring in 2025, Wilson said.

The developer is also building apartments in Lakeway, having broken ground on The Jovie Lakeway in February. The active adult community is for those aged 55 years and up, and is located in the Tuscan Village planned unit development. It will consist of two buildings with 210 apartments ranging from 657-1,282 square feet. The Jovie Lakeway is expected to be delivered in the fourth quarter 2024 with leasing largely occurring in 2025.

Wilson Capital broke ground on Local at Dripping Springs in December. Located at 27110 Ranch Road 12, it will be a 172,028-square-foot project built in two phases. It will consist of three buildings and a clubhouse, with the first phase seeing 174 apartments rise and the second phase seeing 32 more built. The average size of the units is 538-1,427 square feet, and the project is expected to be delivered in the third quarter 2024.

Clark Wilson Builder is the general contractor attached to all three projects. Meeks Partners is attached to The Bower as architect, WDG Architecture is attached to Jovie Lakeway as architect and Humphreys and Partners is attached to Local as architect.

Wilson said that changing market conditions, particularly rising construction costs and interest rates, have caused Wilson Capital to be selective about which projects move forward, adding that some projects that made sense in 2021 or 2022 might not work in today’s economic environment.

To that end, the developer is still targeting a 2024 groundbreaking for Wilson Tower, which would become the tallest tower in all of Texas upon completion at 1,035 feet tall. Plans for that project hit a snag in January when it failed to gain approval from the city’s Design Commission. Commissioner Aan Coleman specifically cited the lack of public space as an issue.

Wilson Tower is still expected to break ground later this year, Wilson said, adding: “We are making some changes in response to the Design Commission’s feedback as well as changing market conditions.”

Wilson Tower's upper half gone in high-rise's updated plans
It was supposed to be Texas' tallest tower

https://www.bizjournals.com/austin/news/2023/04/23/wilson-tower-upper-half-gone-updated-plans.html

[ILUVSAT]

^^^He basically admitted to the fact that his company is over leveraged and cannot afford to build the icon he originally put forth. Market conditions have not changed that dramatically in the few months since his plan was publicly released. Using said excuse is weak. Why announce those plans if market conditions were going to make it impossibly for him to build his vision?

Austlar1 - I agree with you. This kid is just another Tom Stacy.

[Sigaven]

Originally Posted by KevinFromTexas

Meh. I didn't think the design merited the supertall height status. This is more like the Aloft and Hyatt Centric, and I'm good with that.

And now this will be the little toaster that couldn't.

I'm in this boat. The design didn't work for me as a supertall. Had a nice crown but otherwise mediocre facade on the two long sides. I find the shorter height actually works better with the design proportionally. It would really need that hole-punched facade on all sides to work as a supertall, in my opinoin.

[Green Country]

Originally Posted by ILUVSAT

I believe Wilson Capital is apart (or was) in the development of The Travis/80 Rainey.

I think some of the people who are now at Wilson Capital were formerly with the company that developed The Travis/80 Rainey. I don't think Wilson Capital was involved.

[GoldenBoot]

Originally Posted by Green Country

I think some of the people who are now at Wilson Capital were formerly with the company that developed The Travis/80 Rainey. I don't think Wilson Capital was involved.

Yes. I believe this is correct. The project is listed on Wilson Capital's website under: "Built by Executives at Wilson Capital Development."

[Green Country]

Originally Posted by ILUVSAT

[I]

Residential demand is still strong - especially downtown.

Is it? I can't find market reports for downtown Austin, but I just did a quick random survey of availability shown on a few buildings' websites:

Hanover Republic Square: 22.3%
Sienna at the Thompson: 12.1%
Ashton Austin: 9.7%
Camden Rainey: 17.2%

And this in a market with over 3,000 additional apartments already under construction. That is a HUGE jump in supply already coming on... nearly 50%.

[Werdman89]

Originally Posted by Green Country

Is it? I can't find market reports for downtown Austin, but I just did a quick random survey of availability shown on a few buildings' websites:

Hanover Republic Square: 22.3%
Sienna at the Thompson: 12.1%
Ashton Austin: 9.7%
Camden Rainey: 17.2%

And this in a market with over 3,000 additional apartments already under construction. That is a HUGE jump in supply already coming on... nearly 50%.

I think it's a little early to judge Hanover and Camden definitely has people leaving because of the Modern's construction. Should be interesting though to see where things level off at. Ashton and Sienna are probably good numbers. Just checked Seven and it's at 4.9%, which only only includes Available Now. It's 8.6% if you also include future dates.

[Green Country]

Originally Posted by Werdman89

I think it's a little early to judge Hanover and Camden definitely has people leaving because of the Modern's construction. Should be interesting though to see where things level off at. Ashton and Sienna are probably good numbers. Just checked Seven and it's at 4.9%, which only only includes Available Now. It's 8.6% if you also include future dates.

FWIW, Downtown Austin Alliance reported 9.2% apartment vacancy at the end of 2021; probably gone up since then.

[GoldenBoot]

I was thinking...blaming the economic conditions for slicing this tower in half is pretty weak. This same company has almost 2,000 apartment/multifamily units under construction throughout Austin. And they are only one of several national developers building in the area currently. So, the financing is out there. Hard to get...yes. But, it's still available.

Again, I believe this to be a situation of the company being over leveraged so much so they would/could not qualify for a construction loan to complete the supertall version of this tower.

Also, notice in the new renderings that there is no improvement to the street level public interaction - as prescribed by DC for the density bonus. Thus, I believe the other reason this tower was slashed was to avoid dealing with the density bonus program. I mean - what could they really improve at ground level? I thought it look fine - and it's a small footprint.

Anyway, IMHO, this got cut because of lack of funding and avoidance of qualifying for the density bonus.

Additionally, I'm not ruling out Tom Stacy Syndrome...I believe this tower has had at least four versions (including the latest one) in the past 11 months.

[GoldenBoot]

Originally Posted by Green Country

FWIW, Downtown Austin Alliance reported 9.2% apartment vacancy at the end of 2021; probably gone up since then.

Even at 90% occupied (downtown) - that's still pretty darn good when comparing to other cities' CBD's. And, you're always going to have ebbs and flows in occupancy. Looking at it right now may not look too promising - to some. But, when you compare it to the beginning of the last cycle - about 10-12 years ago? You would see similar numbers.

One cannot wait until occupancy hits 100% before construction begins on more housing. You have to (guess) and try to stay ahead of demand.

[Jdawgboy]

So what does this mean in the broader context? Is this a sign that things are cooling down in general for DT development due to the current global economic situation? Should we be worried about other future developments either shrink or not happen going forward? There was a possibility of a 3rd Supertall in the works, I'm assuming that is unlikely to happen either..

[Green Country]

Originally Posted by GoldenBoot

Even at 90% occupied (downtown) - that's still pretty darn good when comparing to other cities' CBD's.

I'd love to see your comparisons to other cities' CBDs.

In any event, I never suggested it was bad; just questioned exactly how strong the demand is. And 90% occupancy with a 50% supply increase on the horizon does not seem especially strong. Pretty tough circumstances for a company with no previous urban high-rise experience to get financing for the tallest (and therefore relatively more expensive) residential project outside NYC.

[GoldenBoot]

Originally Posted by Jdawgboy

So what does this mean in the broader context? Is this a sign that things are cooling down in general for DT development due to the current global economic situation? Should we be worried about other future developments either shrink or not happen going forward? There was a possibility of a 3rd Supertall in the works, I'm assuming that is unlikely to happen either..

This no time to panic. The cycle is slowing. But, there will be another cycle beginning. When...I don't know. But, construction will not stop.

Everyone is evaluating their options. Remember, development firms do not make their money by sitting on land. They need to develop them to the highest and best use to achieve their given ROI.

Most likely, in the near term, new developments will mostly consist of residential and/or lodging. The office market is most suspect at the moment. Let's see how things look in a year or so for that segment.


***No other supertall was proposed beyond Waterline and Wilson Tower.

Originally Posted by GoldenBoot

This no time to panic. The cycle is slowing. But, there will be another cycle beginning. When...I don't know. But, construction will not stop.

Everyone is evaluating their options. Remember, development firms do not make their money by sitting on land. They need to develop them to the highest and best use to achieve their given ROI.

Most likely, in the near term, new developments will mostly consist of residential and/or lodging. The office market is most suspect at the moment. Let's see how things look in a year or so for that segment.


***No other supertall was proposed beyond Waterline and Wilson Tower.

Is there anyone in this forum of crane-necked gawkers (pun intended) who follows Nassim Taleb?

If so, you might expect that shortages in commercials and residential spaces are soon to be followed by a glut.

I predict that by this times next year, roughly, the topics here will be about the glut in residential/commercial, about why haven't rents/prices gone down much, when will they start to fall, etc.

That's the way is it goes.

[ILUVSAT]

Originally Posted by smallfrie

Is there anyone in this forum of crane-necked gawkers (pun intended) who follows Nassim Taleb?

If so, you might expect that shortages in commercials and residential spaces are soon to be followed by a glut.

I predict that by this times next year, roughly, the topics here will be about the glut in residential/commercial, about why haven't rents/prices gone down much, when will they start to fall, etc.

That's the way is it goes.

Not sure one needs to follow Nassim Taleb to understand that dynamic. It's simply a part of the development cycle.

At this moment, I don't think there is anything to fret over. Austin will be just fine.