The Domain development in North-Central austin could get a lot bigger and denser over the next decade. This is the site of the former IBM manufacturing plant along N Mopac expressway at Braker and Burnet Roads. Already under construction is a large outdoor mall, to be anchored by Niemans and Macy's.
Now, however, the rest of the large urban tract has been purchased by Endeavor Real Estate, with long-term plans of a houston galleria-like district with hotels, condos/apartments, offices and retail. It also sits along the future commuter rail corridor, which comes online in 2 1/2 years. The city of Austin is pushing for maximum density on this site. Current zoning allows for buildings as tall as 120 feet
See statesman article below from 9/7/05:
http://www.statesman.com/business/content/business/stories/09/7domain.html
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Endeavor to buy rest of Domain site
Austin developer will take control of project near shopping center in North Austin.
By Shonda Novak
AMERICAN-STATESMAN STAFF
Wednesday, September 07, 2005
Austin-based Endeavor Real Estate Group is buying 170 acres in North Austin that the company says has the potential to become Austin's version of Houston's Galleria, with millions of square feet of shops, hotels, offices and housing.
Endeavor is buying the Domain, near the corner of North MoPac Boulevard (Loop 1) and Braker Lane, with RREEF America LLC, part of Deutsche Bank's real estate investment arm. The price is $45 million.
The land is adjacent to a large shopping center by the same name being built at the site's northwestern edge. That $150 million project, to be anchored by a Neiman Marcus and a Macy's, is being developed by Endeavor and Simon Property Group. and will also include restaurants, a movie theater and about 400 apartments. Simon plans two other centers nearby.
The land Endeavor is buying includes 10 buildings with 1.8 million square feet of surrounding office and industrial space leased mainly to IBM Corp., which has about 2,000 employees there, roughly a third of its Austin work force.
Just two months ago, Endeavor and two other partners put the land up for sale. But Endeavor never really wanted to sell, said Kirk Rudy, a principal with Endeavor. So it's buying out the other partners, J.E. Roberts Cos. and New York-based Blackstone Real Estate.
"I really do think this 170-acre site has the potential to be one of the most exciting redevelopment opportunities in the region, if not the state," Rudy said.
The land is near three major roads: MoPac Boulevard, U.S. 183 and Capital of Texas Highway (Loop 360), and has direct access from MoPac.
The land also is near a future proposed commuter rail hub and is in an area where city leaders are encouraging development.
The sale is expected to close in about a month.
"We view it as an exciting long-term development opportunity," said Brad Gries, a vice president of acquisitions in Chicago for RREEF America.
Rudy said Endeavor will invest equity in the project but declined to discuss each companies' financial share.
Rudy said demolition of empty office buildings and warehouses could begin within the next six to eight months to make way for development.
Endeavor has started working on "a number of alternative master plans" for the site, although plans are preliminary, he said.
Endeavor is working with an architect on conceptual drawings.
Rudy said the Domain name will be retained for the new project, saying it "has lots of brand identity."
In 1999, Endeavor and its partners bought 235 acres for $60 million, intending to turn the site into an office park for dot-com companies, which is where the name arose. Some of the land has since been sold for shopping centers.
The 170 acres is east of the Arboretum shopping area, where many national retailers have stores that are among the top-grossing in their chains, and where local retail brokers say many more would congregate if land were available. Several major high-tech employers also are in the area, including IBM and National Instruments Corp.
There's no shortage of apartment and hotel developers expressing interest in the site, Rudy said.
When developed over the next 10 to 12 years, Rudy said, the land potentially could have millions of square feet of offices, hotels and up to 2,000 apartments and condomin- iums.
Rudy said it's too soon to say what role Endeavor will play in the development.
"We're still open to whether we'd develop all the components ourselves or maybe sell off land to developers to do other components," Rudy said.
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