Austin | 6G | 874 Feet | 65 Floors | Complete - Page 47

Jdawgboy · #**921** Posted **Apr 21, 2019, 2:03 AM**

I've heard again recently from someone I met who worked in DT real estate and someone mentioned this as well on the forum but apparently there are many companies that want to move into DT. The demand is there so unless there is some other underlying issue with the developer which there shouldn't, we should not only see office projects announced proceed but from what I gathered, there are more office towers that are in the works behind the scenes that haven't been announced yet.

urbancore · #**922** Posted **Apr 21, 2019, 3:13 AM**

Quote:

Originally Posted by Jdawgboy

I've heard again recently from someone I met who worked in DT real estate and someone mentioned this as well on the forum but apparently there are many companies that want to move into DT. The demand is there so unless there is some other underlying issue with the developer which there shouldn't, we should not only see office projects announced proceed but from what I gathered, there are more office towers that are in the works behind the scenes that haven't been announced yet.

I’ve heard similar rumors from reputable sources. However, still just rumors.

The ATX · #**923** Posted **Apr 21, 2019, 5:33 AM**

Quote:

Originally Posted by ILUVSAT

1- don't worry yourself over the motel bookings. Those can (and will be) cancelled upon commencement of construction. They will obviously operate up until the last second. So, I would care if they're booking out into the next decade.

2- how is The Republic progressing? Both 6xGuad & The Republic are being developed by the same company. And, I do not think there is enough capital out there to simultaneously construct both of these projects without a massive tennant(s) within one or both projects.

It's the stalled permitting process and the fact they have had seven months to begin Demo and site prep since site plan #1 was approved - not the hotel thing so much.

The Republic appears to be close to having the site plan approved. I wouldn't be at all surprised if that one gets approved first.

KevinFromTexas · #**924** Posted **Apr 21, 2019, 6:00 AM**

Maybe they're making it taller. Hey, one can dream. With a 99% occupancy rate in Austin, I'm surprised we aren't seeing more office towers already.

drummer · #**925** Posted **Apr 21, 2019, 11:47 AM**

^^ One would think that with that much demand and even more coming with continued growth, folks may want to take advantage of the spots with no CVC limits. Who knows?

AusTxDevelopment · #**926** Posted **Apr 21, 2019, 1:51 PM**

Quote:

Originally Posted by The ATX

No news to post. But I'm worried about this project as proposed. The tower site plan has had an "inactive" status since December. Site plans for big projects tend to have a short periods with an "inactive" status as a normal part of the approval process - but not for several months.

Last September the site plan was split in two to apparently fast track the project which is common for projects that have financing like Block 185, Third + Shoal, Block 71 and others. The first site plan in the fast track process is typically for demo/site prep/excavation and the second site plan is for the tower. But unlike projects usually fast tracked with two site plans, no demo/site prep/excavation ever got started after the first site plan was approved - seven months ago in this case. Also worrisome is the fact that there has been no permit active in 2019 related to this project and the fact that you can still book a room at the hotel on site for another year.

Lincoln is actively looking for investment partners for both 6X and the Republic. I know of a couple of groups that have been approached. Both will get built, but maybe not in the form originally proposed. There is too much demand for them not to be. Unless there is a downturn, of course.

Quote:

Quote:
Originally Posted by Jdawgboy
I've heard again recently from someone I met who worked in DT real estate and someone mentioned this as well on the forum but apparently there are many companies that want to move into DT. The demand is there so unless there is some other underlying issue with the developer which there shouldn't, we should not only see office projects announced proceed but from what I gathered, there are more office towers that are in the works behind the scenes that haven't been announced yet.

This is absolutely true, and all of these companies want big blocks of office space - 100,000 square feet and up. Most of the companies are tech, fintech or tech-adjacent, so they have plenty of cash. However, they all want the office space now rather than later. They don't want to wait until 2021-2022. They'll go to the Domain or East side because the buildings can be built faster. Or they'll just have to wait. There are not a lot of 'quick' options for companies that want that much office space in one spot. Austin is full.

We vs us · #**927** Posted **Apr 23, 2019, 2:03 PM**

Quote:

Originally Posted by AusTxDevelopment

Lincoln is actively looking for investment partners for both 6X and the Republic. I know of a couple of groups that have been approached. Both will get built, but maybe not in the form originally proposed. There is too much demand for them not to be. Unless there is a downturn, of course.

This is absolutely true, and all of these companies want big blocks of office space - 100,000 square feet and up. Most of the companies are tech, fintech or tech-adjacent, so they have plenty of cash. However, they all want the office space now rather than later. They don't want to wait until 2021-2022. They'll go to the Domain or East side because the buildings can be built faster. Or they'll just have to wait. There are not a lot of 'quick' options for companies that want that much office space in one spot. Austin is full.

It's such a weird chicken and egg problem. Lincoln seems to have been pursuing partners for awhile now -- with our demand, I'm curious what the hold up might be. It would seem that both of those towers would be slam dunks, no?

The ATX · #**928** Posted **Apr 23, 2019, 6:41 PM**

If there is so much demand for office space (which I don't doubt) why can't a large Spec office project get financing? 405 Colorado is being built on Spec as far as I know, but that is actually a rather small office project at 200K+ Sq. Ft.

We vs us · #**929** Posted **Apr 25, 2019, 2:15 PM**

Quote:

Originally Posted by The ATX

If there is so much demand for office space (which I don't doubt) why can't a large Spec office project get financing? 405 Colorado is being built on Spec as far as I know, but that is actually a rather small office project at 200K+ Sq. Ft.

Yeah, this is kinda my question, too. Broadly -- you'd think that RE investment money would be pouring in to Austin. Or -- maybe just looser here than in other places. Given everything we know about the market, and especially the CBD, it's as much of a sure thing as you can get, IMO -- even on spec.

GoldenBoot · #**930** Posted **Apr 25, 2019, 4:30 PM**

Quote:

Originally Posted by We vs us

Yeah, this is kinda my question, too. Broadly -- you'd think that RE investment money would be pouring in to Austin. Or -- maybe just looser here than in other places. Given everything we know about the market, and especially the CBD, it's as much of a sure thing as you can get, IMO -- even on spec.

That's easy to say when you live here. But, it is a different story when one is still trying to convince national & international sources of capital that Austin is a good investment.

Furthermore, we're overdue for a recession. And there is a presidential election next year...people are getting antsy.

AusTxDevelopment · #**931** Posted **Apr 26, 2019, 2:48 PM**

Quote:

Originally Posted by The ATX

If there is so much demand for office space (which I don't doubt) why can't a large Spec office project get financing? 405 Colorado is being built on Spec as far as I know, but that is actually a rather small office project at 200K+ Sq. Ft.

The Molar is not being built spec. They signed a lease with a law firm for 35% of the building before they started. They're also negotiating leases with a coworking firm but I don't know which one. And, importantly, Brandywine didn't need an equity partner for this building. It's all their own money. In fact their public filing says they are using 'cash on hand' to develop the building.

Jdawgboy · #**932** Posted **Apr 26, 2019, 5:37 PM**

Quote:

Originally Posted by AusTxDevelopment

The Molar is not being built spec. They signed a lease with a law firm for 35% of the building before they started. They're also negotiating leases with a coworking firm but I don't know which one. And, importantly, Brandywine didn't need an equity partner for this building. It's all their own money. In fact their public filing says they are using 'cash on hand' to develop the building.

Well they need to build a signature 1,000 footer then rather than a tooth.

Austin1971 · #**933** Posted **May 7, 2019, 8:43 PM**

E

The ATX · #**934** Posted **May 7, 2019, 8:48 PM**

Quote:

Originally Posted by Austin1971

Extended Stay no longer taking reservations past 1 August on their website.

To verify I called and spoke to a nice young lady who told me that the hotel property had been bought and that they would be shutting down in July.

Nice. That's the first news about this project so far this year. Nice job with the phone call to verify it.

urbancore · #**935** Posted **May 7, 2019, 10:13 PM**

Quote:

Originally Posted by The ATX

Nice. That's the first news about this project so far this year. Nice job with the phone call to verify it.

Whoomp there it is!

ahealy · #**936** Posted **May 7, 2019, 10:15 PM**

Just to think, 65 stories in.... Austin!

This isn't my favorite, but I cannot wait to see something taller than the Austonian

the Genral · #**937** Posted **May 7, 2019, 10:40 PM**

Quote:

Originally Posted by ahealy

Just to think, 65 stories in.... Austin!

This isn't my favorite, but I cannot wait to see something taller than the Austonian

Look no further than the Independent. Your wait is over.

The ATX · #**938** Posted **May 7, 2019, 10:40 PM**

I fined tuned the available room search, and Sunday July 21 is actually the last day that the hotel is taking reservations. After that date the next closest Extended Stay hotel is at the top of the list of available options.

ahealy · #**939** Posted **May 7, 2019, 10:45 PM**

Quote:

Originally Posted by the Genral

Look no further than the Independent. Your wait is over.

Lolll. Well, you know what I mean. I still feel like Austonian is the main tall baby. SOOOOO ready for another big baby in the crib.

**Buildings are babies now btw.

Jdawgboy · #**940** Posted **May 8, 2019, 3:07 AM**

Quote:

Originally Posted by ahealy

Lolll. Well, you know what I mean. I still feel like Austonian is the main tall baby. SOOOOO ready for another big baby in the crib.

**Buildings are babies now btw.

Basically you want a building that is more than a couple of feet taller yet sits a few feet lower than the Austonian... is how I took it.