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Originally Posted by LiveattheOasis
Anybody have the Statesman article from today on South Lamar?
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South Lamar corridor is booming — here’s why developers are rushing in
Zoning changes have spurred growth along the stretch and new housing,
retail and office developments are springing up.
By Julianna Duennes Russ,Staff Writer Sep 1, 2025
On South Lamar Boulevard, the 78704 artery threaded with coffee shops, fitness studios and taco joints, cranes and leasing banners now share the skyline.
The Bouldin, a new $80 million apartment community at 1401 S. Lamar, just finished construction and is signing its first wave of tenants steps away from Bouldin Creek and Zilker Park.
zoning designation called Density Bonus 90. It’s designed to encourage more affordable homes and neighborhood-serving businesses on major arteries like South Lamar.
FROM 2024: Largest mixed-use project in more than a decade underway on Austin’s South Lamar Boulevard
The zoning allows residential uses on certain commercially zoned sites, relaxes some development standards and allows construction heights up to 90 feet in exchange for inclusion of income-restricted units. Outside the downtown area, which doesn’t have height restrictions, height limits typically range from 40 to 60 feet for commercially
For rental projects, the new zoning designation requires developers to set aside 12% of units for tenants with incomes at or below 60% of the median for area families, or 10% of units at or below 50% of median, for 40 years. For-sale projects require 12% of units to be reserved for those at or below 80% of the median for 99 years, or risk paying a hefty fee.
The city has had a vertical mixed-use zoning program in place since 2006. Vertical mixed-use zoning increases density by placing ground-floor retail space below residential units in certain high-transit corridors, including Lamar Boulevard. Other mixed-use areas include Burnet Road, East Seventh Street and South Congress Avenue.
In 2022, the city sought to expand existing vertical mixed-use zoning by introducing a second phase of the classification, which added a 30-foot height bonus to the program. A judge struck it down in 2023, though, arguing that city officials ignored a prior court order prohibiting them from approving zoning changes without proper public notice.
Council then created Density Bonus 90, which re-established a path for taller mixed-use housing with clearer affordability requirements. It has seen its share of challenges, too, with Mayor Kirk Watson calling it an “unhappy experience” and announcing a proposed amendment to the program on a message board in May.
“The main thrust of the resolution is creation of a hierarchy of density bonus paper districts that include both lower and higher heights than DB90,” Watson said. “This is a critical necessity in our code, as this provides options that may allow for better outcomes.”
He added: “The other critical goal of the resolution is to relook at how we can make these programs work better by considering items such as the affordability requirements, height allowances, redevelopment requirements, and commercial standards.”
In June, the council passed amendments to the program. Despite the challenges, the pace of development remains high.
At 2323 S. Lamar, work is under way on a 5-story mixed-use project owned by Pearlstone Partners that’s adding 179 apartments and street-level space for shops and restaurants. Amenities are to include a central courtyard with an elevated pool, a fitness center, co-working spaces and a rooftop lounge, according to construction firm Summit Design + Build. It’s expected to be completed by the end of 2026, according to a filing with the Texas Department of Licensing and Regulation.
A few blocks north, The Bouldin is opening alongside its co-owned neighbor, a 140,000-square-foot, four-story office space at 1301 S. Lamar. Austin-based investment firm Seamless Capital developed both properties, adding new daytime foot traffic for area restaurants and retail.
Seamless Capital pitched another mixed-use development last year, according to city permit records. The project would take up the 2700 and 2800 blocks of South Lamar, where a Goodwill store once stood. A portion of the nearly 5-acre site was approved for Density Bonus 90 zoning in August, making way for its transformation under the new guidelines.
The $137 million development will consist of at least one 468,000-square-foot building with 399 apartment units, according to a state filing. The filing indicates construction is to start in a few weeks and be completed by February 2029. Other projects have also targeted South Lamar with housing affordability in mind.
Bouldin Village, which opened last year at 2001 S. Lamar, is a 375-unit multifamily development in a density bonus zone. Another affordable housing project, Zilker Studios, opened in 2023 at 1508 S. Lamar and provides 110 income-restricted apartments. It wasn’t zoned under the density bonus, but it did fall under the Vertical Mixed Use zoning designation.
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