AUSTIN | Projects & Construction II

[GoldenBoot]

Originally Posted by JGFrisco

...This might happen, but I expect (like the Stacy building) that major changes will be made, and that they will try to wait out the credit crunch until lending money gets a little looser.

The credit crunch has nothing to do with the funding of large-scale real estate development projects. It is a market correction effecting home mortgage lenders who have made some very questionable loans over the past several years. Money is out there - especially on the international market. Foreign investors are flooding into the U.S. looking for deals. In fact, capital for The Austonian is being contributed by Spanish investors, who have invested almost $250 million in the project.

[DTAustin]

Originally Posted by GoldenBoot

The credit crunch has nothing to do with the funding of large-scale real estate development projects. It is a market correction effecting home mortgage lenders who have made some very questionable loans over the past several years. Money is out there - especially on the international market. Foreign investors are flooding into the U.S. looking for deals. In fact, capital for The Austonian is being contributed by Spanish investors, who have invested almost $250 million in the project.

On top of that, 21C is a self funded project. The developers are loaded, and I believe heirs to the Jack Daniels fortune.

Austin is also a very unique market right now. We are #1 on Forbes prediction for the fastest growing economies for the next few years. Hotel space is very limited. Try booking a hotel near downtown on the weekend. It will cost you, if a room is available. Anything near downtown is in high demand. This is true for hotels, rentals, condos, and houses.

Thus, I think projects that don't work out are just not viable projects, not because they can't get funding.

[ATXboom]

All points mentioned address the "credit crunch"... that is a consumer issue for home mortgages. People can not borrow back on their homes to support the economy as a consumer and leding for home loans is a little more strict. That's it. In regard to the folks who are in a position to buy a $1M condo or up... the credit crunch has zero impact on them. The crunch only impacts the equity buying power of those who overstretched to buy a home in the first place.

Actually money is easier to come by these days for this type of project. Lower bank rates make borrowing cheaper. Cheaper dollar reletive to Euro drives foreign investment up. As mentioned... the creator of 21C is privately funded/ read loaded. There are no $$ issues.

Golden Boot seems to be on top of the development process.

Check out the TX forum... supposedly only 1 unit on the top few floors of Austonian is left... the high end market is doing really well.

[nixcity]

and I believe heirs to the Jack Daniels fortune

I'm proud to be an unknowing sponsor of such a quality project.

[JGFrisco]

Maybe, maybe. But if you are a lender, and somebody comes to you with a project like this that's unusual, you hesitate. In this market, at this time, you think about it. All those condos DO have to get financing, so you have to evaluate whether the values will be there. You also have to evaluate the type of building and project. Something new and unusual and unproven, by a company that is unproven also, at least in the type of project involved, will make you nervous.

And you can't tell me this isn't unique. What they have in Louisiville is FAR from what they're proposing in Austin.

Simpler project? The demand is there, and they are off and running. But these are very standard projects. 360 is very like a dozen other high-rise condo buildings. The Austonian is, too - just a little taller. But in a way, that one's height makes the difference. Altavida? Legacy? All typical stuff. 21c is different, and it is having problems as a result.

Maybe it will get built. I hope so.

[KYbred]

Originally Posted by DTAustin

On top of that, 21C is a self funded project. The developers are loaded, and I believe heirs to the Jack Daniels fortune.

I think it started with Jim Beam, but they own Jack, Woodford, and 45 some odd other brands around the world. ...plenty of old money I'd say

As for Poe, they're more than capable of handling 21c. They're behind Museum Plaza (as is the Brown-Forman liquor folks) in Louisville which is a much larger task than I think 21c would be. That's a funky piece of work they have going up there.

[Strayone]

Alot of great views stated above, and yes 21c is unique but also viable at the very least in that it does have the hotel portion which would help to fill the lack of available rooms. There will a notable amount of travelers who may be visiting all those people who will be living very nearby in the DT area. It makes sense to me for the developers and investors to have a go at this. Hopefully it overcomes whatever obstacles are in the way.

[priller]

Another Photoshopped skyline. I took this photo myself today. I also added a different sky, which not only looks better, but makes adding in the buildings a lot easier.

[427MM]

Wow, the CNU-Downtown Residential Tour picture.

It's Priller time!

[MichaelB]

Priller.... I like how you got Spring in the far corner! Good Work!

[KevinFromTexas]

Excellent!

[priller]

From 2/13.

Altavida:










Austonian:










Four Seasons:




Legacy:

[KevinFromTexas]

Great pics! Looks like Four Seasons is moving right along. And your picture shows just how vertical Legacy @ Town Lake is going to appear.

[ATXboom]

Great job Priller!! ...sadly it just gets me more jazzed to see 21C and the new Marriott in that pic.

[priller]

Originally Posted by KevinFromTexas

Great pics! Looks like Four Seasons is moving right along.

You can't really make it out so well in the photo, but in the back are a bunch of cylindrical rebar cages that will go down into the pier holes. I don't think they're going to dig down much at all, so the foundation work shouldn't take too long.

They're also advertising on NPR a lot. Oh, I'm sorry, they're "sponsoring" segments on NPR. "Sponsored by The Four Seasons Residences, now under construction...".

And your picture shows just how vertical Legacy @ Town Lake is going to appear.

Yeah, it's not quite halfway up yet. It's really going to tower over that end of downtown.

[priller]

Originally Posted by ATXboom

Great job Priller!! ...sadly it just gets me more jazzed to see 21C and the new Marriott in that pic.

Thanks, guys, for all the nice feedback. I appreciate it!

Unfortunately the 21c will be almost completely obscured by the Four Seasons from that angle. The Marriott will probably be mostly hidden, too. Of course, it depends on what kind of design and orientation they finally come up with. Also Block 51/Ovation will only be partially visible behind W and Altavida. If they end up building something tall at the water treatment lot some day, that will really show up from this view.

[JGFrisco]

Anyone know the latest on W? Seems to be a bit of a holdup?

[ATXboom]

Golden Boot covered the W in an earlier thread.

They needed to go back to council for a zoning change... increasing the overall project to near 1 M sq feet. They needed to redesign a bit with the Children's museum backing out.

Zoning was approved a week or 2 ago... Construction permits are now being issued.

I would guess you will see actuall dig work start in March.

[GoldenBoot]

Yep...excavation for the below-grade parking garage should begin in March.

[Sexas]

[QUOTE/]

[/QUOTE]

What game is this? Dick, Dick, Goose!