AUSTIN | Waterline | 1,034 Feet | 73 Floors | T/O

[The ATX]

Originally Posted by Jdawgboy

It's a little curious as to why they are pushing this one for approval when they already have the other sites approved. Why not focus on those lots? This makes me even less enthusiastic about this latest update simply because if they are planning to build anytime soon, then why bother to start the approval process for the IHop site, why not move forward with development on the approved sites?

This isn't the IHOP site. This is the parking lot next door. I'm not that excited about this one either. Just like I can't really care about the Block 16 project with CC expansion looming.

EDIT. World Class Capital Group owns the IHOP site. That means it's worse off than a site owned by WeWork.

[Billy Cannon]

I have a feeling the we work component will be significantly downsized and a totally new concept for these sites is in the works

[AusTxDevelopment]

Originally Posted by The ATX

Four towers are planned as far as we know. Three have approval and the fourth one - Block 190 - is going through the approval process.

They are wrapping up the entitlements to increase the value when they sell this. It is doubtful they can do anything with this property in the short term, and they need cash. There is significant money locked up in this property. If all four sites are fully entitled, the price goes up.

Personally I hope they sell this site sooner rather than later, to a competent developer, because that will accelerate the development of the site. If WeWork sits on it while they sort out their current mess, it could be years before anything happens with the site and we might be in a downturn by then.

[We vs us]

Originally Posted by AusTxDevelopment

They are wrapping up the entitlements to increase the value when they sell this. It is doubtful they can do anything with this property in the short term, and they need cash. There is significant money locked up in this property. If all four sites are fully entitled, the price goes up.

Personally I hope they sell this site sooner rather than later, to a competent developer, because that will accelerate the development of the site. If WeWork sits on it while they sort out their current mess, it could be years before anything happens with the site and we might be in a downturn by then.

Thank you. That's a much better explanation than I was imagining.

[zrx299]

It won't happen, but that lot really needs bisected and Rainey St extended to Chavez.

[freerover]

Originally Posted by zrx299

It won't happen, but that lot really needs bisected and Rainey St extended to Chavez.

Cesar doesn’t need another traffic light.

[The ATX]

Originally Posted by freerover

Cesar doesn’t need another traffic light.

...especially so close to Red River and the frontage road. The City's plans to upgrade the RR & CC intersection should be helpful. This project had to give up some right of way IIRC in order to get the site plan extended for the three towers formerly known as WPP.

[zrx299]

No need for an extra light. Just hold the existing ones an extra 10 seconds or so. Don't allow left turns onto Chavez from Rainey-extended. Westbound Chavez turning onto Rainey-extended would be able to complete their turns during the short period the other lights are red. Access is increased to Rainey. You move the rideshares in/out quicker from the area and the hotels, not to mention better access for emergency services.

No one wants a massive elongated block-sized building taking up that entire rectangle shaped parcel anyway, so why not chop it up and solve a lot of the connectivity problems. 2 birds 1 stone. Seems like a fairly obvious and logical solution to me, strictly from a design perspective.

[kingkirbythe....]

https://qz.com/1726403/wework-is-running-out-of-cash/

More bad news for this spot.

[txtriathlete]

https://atxrealestatenews.com/2019/1...trict-project/

Nice little update here

[The ATX]

That was a nice update. Jan's referencing the same zoning file that we got the proposed uses from, but she recognized names on the paperwork as Lincoln and Kairoi Reps. Lincoln really has a huge investment in Austin.

[austlar1]

Originally Posted by txtriathlete

https://atxrealestatenews.com/2019/1...trict-project/

Nice little update here

Seems like Lincoln has it's hands full already developing other mega projects downtown. If they have gained full control of this land, I have a feeling they'll be sitting on it for a few years going forward. They already have plans to bring well over a million square feet of office space to downtown in the next three years. I don't think their pockets are deep enough to take on more at this point.

[The ATX]

Soft Bank is on the verge of taking complete control of the We Company with a multi-billion dollar investment that would remove the last of Adam Neumann's control over the company. This is up there with the Enron and Worldcom stories.

https://www.cnbc.com/2019/10/13/soft...ework-wsj.html

[The ATX]

The ABJ has a new article about the project, and Lincoln confirms they have partnered with Kairoi and WeWork to develop this project. But the Rep didn't have a comment about how WeWork's current situation affects the project.

[ATXboom]

Originally Posted by The ATX

The ABJ has a new article about the project, and Lincoln confirms they have partnered with Kairoi and WeWork to develop this project. But the Rep didn't have a comment about how WeWork's current situation affects the project.

"Two well-known real estate development companies, Lincoln Property Co. and Kairoi Residential, have partnered with WeWork to develop a massive mixed-use project at Red River and East Cesar Chavez streets in downtown Austin.

“The day-to-day development and entitlement process are being led jointly by LPC and Kairoi,” said Seth Johnston, senior vice president at Lincoln. “The project is still in the early design stage but is moving forward as planned. These are important parcels to the continued development of the Rainey District and we are being diligent in the design process.”

Johnston said the project is a joint venture between Lincoln, Kairoi and The We Company — the broader brand set up by WeWork earlier this year.

Johnston declined to comment on how WeWork’s uncertain financial future could impact the project, and if the development project is capitalized.

It’s unclear how WeWork’s failed initial public offering will impact the project and future leases in Austin."

https://www.bizjournals.com/austin/n..._news_headline

[AusTxDevelopment]

Originally Posted by ATXboom

"Two well-known real estate development companies, Lincoln Property Co. and Kairoi Residential, have partnered with WeWork to develop a massive mixed-use project at Red River and East Cesar Chavez streets in downtown Austin.

“The day-to-day development and entitlement process are being led jointly by LPC and Kairoi,” said Seth Johnston, senior vice president at Lincoln. “The project is still in the early design stage but is moving forward as planned. These are important parcels to the continued development of the Rainey District and we are being diligent in the design process.”

Johnston said the project is a joint venture between Lincoln, Kairoi and The We Company — the broader brand set up by WeWork earlier this year.

Johnston declined to comment on how WeWork’s uncertain financial future could impact the project, and if the development project is capitalized.

It’s unclear how WeWork’s failed initial public offering will impact the project and future leases in Austin."

https://www.bizjournals.com/austin/n..._news_headline

Lincoln & Kairoi have been attached to this project for a while, but it wasn't public knowledge until Jan dug it up. There is also a foreign equity partner (Central America) invested. And everything Lincoln invests in has Goldman Sachs as their partner so there is plenty of dry powder behind this project. They just need to buy out WeWork's partner interest, get them and their troubles out of the way, and get this thing started.

[GoldenBoot]

I'm eager to see what they come up with regarding design.

[We vs us]

Originally Posted by AusTxDevelopment

Lincoln & Kairoi have been attached to this project for a while, but it wasn't public knowledge until Jan dug it up. There is also a foreign equity partner (Central America) invested. And everything Lincoln invests in has Goldman Sachs as their partner so there is plenty of dry powder behind this project. They just need to buy out WeWork's partner interest, get them and their troubles out of the way, and get this thing started.

I really find your comment interesting. So -- if they're trying to push We Co. out of the deal (which makes total sense, tbh) -- will Lincoln & Karoi and partners build this whole complex on spec? Do you think there's an anchor tenant involved?

[We vs us]

And coincidentally -- SoftBank to buy out WeWork completely.

https://www.cnbc.com/2019/10/21/soft...k-sources.html

[paul78701]

Originally Posted by We vs us

And coincidentally -- SoftBank to buy out WeWork completely.

https://www.cnbc.com/2019/10/21/soft...k-sources.html

Sounds like WeWork isn't going away then. SoftBank has basically unlimited funds. It will be interesting to see how they manage the company's real estate portfolio going forward.