AUSTIN | Project Updates Thread Part II

[We vs us]

Here's some good news, ex-post-World Class.

$95M deal lined up to buy sites around The Austonian
World Class has owned land since '12 but lost control of it because of long legal feud

A downtown Austin site at the center of a years-long lawsuit is on the verge of being purchased for $95 million.

According to court records, a company called Third and Congress Owner LLC has agreed to purchase three downtown parcels owned by WC 3rd and Congress LP — an entity owned by World Class Holdings, Nate Paul’s embattled real estate investment firm.

The deal would be for 53,920 square feet on two sides of The Austonian condo tower, but that relatively small space could hold over 1 million square feet of towering office or residential space. The land is currently occupied by a surface parking lot fronting Third Street and low-rise buildings at the corner of Colorado and Second streets.

https://www.bizjournals.com/austin/n...ment-site.html

[Urbannizer]

Windsor Park Apartment Project Trades Steaks for Affordable Homes

A five-story multifamily housing development at the edge of the Windsor Park neighborhood in East Austin is set to bring 308 affordable homes to a prominent empty lot near the southeast corner of I-35 and Highway 290 at Clayton Lane, a 2.5-acre site previously home to a Texas Land & Cattle steakhouse — which closed back in 2018 and was demolished shortly after, remaining fenced-off and vacant ever since.

The apartment community, known as Windsor Park Towers in city filings, will offer 298 of its units to households earning no more than 60 percent of the Austin metro’s median family income, which in 2021 ranged from $41,580 per year for an individual or $59,340 for a family of four. The remaining 10 units will be restricted for families and individuals earning at or below 50 percent of the median family income — as of last year, that’s $34,650 yearly for an individual or $49,450 for a family of four.

[Sigaven]

Much needed! And nice to see that they will have good finishes and appliances in the apartments as well.

[Echostatic]

Can't say it's the best location in the city, but 308 affordable units is great! And it's not affordable the "10 units for 80% MFI" way, but the entire complex at 60% or less. This is a great little project that the city should be emulating in more places.

[JoninATX]

Originally Posted by We vs us

Here's some good news, ex-post-World Class.



https://www.bizjournals.com/austin/n...ment-site.html

Good site for another supertall!

[The ATX]

Originally Posted by JoninATX

Good site for another supertall!

Well, every site is a good location for a supertall IMO.

[migol24]

I've always felt that Austin's true signature tower would fit nicely right on that lot next to the Austonian. I imagine something visually striking like a modern art deco tower rising to well over 1000ft. I just hope that they don't go the cheap route and build something sub par.

[austlar1]

Originally Posted by Echostatic

Can't say it's the best location in the city, but 308 affordable units is great! And it's not affordable the "10 units for 80% MFI" way, but the entire complex at 60% or less. This is a great little project that the city should be emulating in more places.

It's a hideous location for apartments, and, if the apartment complexes just to the east towards Cameron Road are any indication, this development will soon be in similar shape. The developer may have noble intentions, but there is no way to make that location desirable for residential purposes. Super busy freeway in front and skeevy apartments to the rear. Don't rely on the Google-mobile. Check out the street (Clayton) for yourself. It is pretty dicey, especially at night.

[enragedcamel]

Either way, it's a massive improvement over what is currently there, right?

Can't let perfect be enemy of good.

[H2O]

The affordable housing is very much needed, even if the location is less than ideal. These kinds of projects require heavy subsidies in the form of tax credits and gap financing from the City's affordable housing bonds among several other potential sources. Finding inexpensive land is part of the equation. There is only so much money available, and the projects have to be cost competitive to receive tax credits and other public funding. If the land basis is too high, the project will not happen. The key is to use the equity funds from Project Connect and other public sources to acquire well located properties (near transit, schools, parks and other every day essential amenities like groceries and health care and in opportunity areas) and leveraging existing publicly owned land.

The problem is that the State Constitution prohibits public entities from selling properties for less than market rate, even if it is for a public purpose. A possible solution would be to place the property into a permanent land trust (although even that transfer might need to be market-based) and doing long term ground leases to private affordable housing developers. A lease rebate could be part of a performance-based incentive as a component of the funding stack to make the land basis effectively zero.

Still, the need is much greater than the funds available, so every Affordable project built needs to be celebrated.

[austlar1]

Originally Posted by enragedcamel

Either way, it's a massive improvement over what is currently there, right?

Can't let perfect be enemy of good.

Not sure I agree with that sentiment. I think this project is indicative of a callous disregard for folks who need affordable housing. The site might be put to better use as playing fields or a park for the residents packed into the apartments complexes towards Cameron Road, but the poor air quality and noise pollution make that use questionable as well. On the other hand, there is all that market rate housing along IH35 just north of St. David's, so what do I really know? You could not pay me enough money to live next to that stinking freeway.

[ahealy]

Originally Posted by austlar1

Not sure I agree with that sentiment. I think this project is indicative of a callous disregard for folks who need affordable housing. The site might be put to better use as playing fields or a park for the residents packed into the apartments complexes towards Cameron Road, but the poor air quality and noise pollution make that use questionable as well. On the other hand, there is all that market rate housing along IH35 just north of St. David's, so what do I really know? You could not pay me enough money to live next to that stinking freeway.

I recall apartments in LA next to the 405 where most of the residents suffered from some kind of rare lung problem due to proximity to the constant exhaust.

[enragedcamel]

Originally Posted by austlar1

Not sure I agree with that sentiment. I think this project is indicative of a callous disregard for folks who need affordable housing. The site might be put to better use as playing fields or a park for the residents packed into the apartments complexes towards Cameron Road, but the poor air quality and noise pollution make that use questionable as well. On the other hand, there is all that market rate housing along IH35 just north of St. David's, so what do I really know? You could not pay me enough money to live next to that stinking freeway.

I mean, it's not like only affordable housing is being built next to the freeway. Go a few more miles closer to downtown and you'll see all kinds of really nice luxury towers overlooking it. So I'm not sure how it is "callous disregard" for folks who need affordable housing.

[ahealy]

Originally Posted by enragedcamel

I mean, it's not like only affordable housing is being built next to the freeway. Go a few more miles closer to downtown and you'll see all kinds of really nice luxury towers overlooking it. So I'm not sure how it is "callous disregard" for folks who need affordable housing.

For sure. Ultimately happy about this... Those apartments on the upper deck are wayyyyy closer than this will be.

[Echostatic]

"Luxury Housing"

[427MM]

Sad result of ongoing NIMBYism is we allow big amounts of housing far away from where ppl want to be and next to busy roads. It is then the most difficult to build where we have the best transit, best access to jobs/retail and is the most walkable. No rule kills more housing in Austin than Compatibility yet it lives on despite our housing crisis. Eventually City Hall takes the issue more seriously and ditches it and other exclusionary zoning but until then...

[austlar1]

Originally Posted by Echostatic

"Luxury Housing"

Every time I drive by these apartments I can't help wondering who in the bloody hell is willing to live there, especially paying a hefty price for the privilege. I can under stand possibly living high up over the freeway opposite downtown, but these units are right in the thick of all the noise, fumes, and traffic. I just don't get it.

[migol24]

Maybe they were thinking that they were going to bury I-35?

[JoninATX]

Originally Posted by migol24

Maybe they were thinking that they were going to bury I-35?

I can't wait for that day to come.

[H2O]

Originally Posted by austlar1

Every time I drive by these apartments I can't help wondering who in the bloody hell is willing to live there, especially paying a hefty price for the privilege. I can under stand possibly living high up over the freeway opposite downtown, but these units are right in the thick of all the noise, fumes, and traffic. I just don't get it.

I'm sure nobody really WANTS to live there, but we are in a housing crisis and people will lease what is available to them at a certain price point and location. There is probably fairly high turnover as people find other options as their leases come up.