On June 8th, the Mississippi-based real estate firm EastGroup Properties Inc. was unanimously approved by the city of Round Rock for incentives up to $125,000 to aid the firm’s upcoming industrial redevelopment. The redevelopment itself is estimated to cost $9 million and will focus on a 9-acre site at 350 Texas Avenue. Fondly nicknamed “the Texas Ave” project, this Round Rock development is expected to span over 125,000 square feet.

The continued approval of this project is contingent on the demolition of the current building by March 31, 2024, with an expense of at least $125,000, with a completed replacement by the end of 2026 at a minimum of 100,000 square feet. 

The demolition alone will cost anywhere between $120,000 and $135,000, while the capital investment in this project will be approximately $9 million. Currently, two small structures reside on the property, with a combined square footage of 15,000 square feet. EastGroup Properties Inc. aims to demolish these structures and redevelop with two class A light industrial buildings, which will span a total of 128,700 square feet, one with 70,000 square feet and the other with roughly 58,000 square feet. Recent conceptual plans showcase both buildings clearing over 28 stories in height.

David Hicks, the vice president of EastGroup Properties Inc., has confirmed that no tenants are currently secured for this project but that construction is expected to begin later this year.

“Part of our program of work on the economic development team is to work with developers who identify properties that we can potentially use for future economic development projects and more so even working with them to find redevelopment opportunities, so when we’re recruiting companies we have the appropriate real estate,” said Jordan Robinson, CEO and president of the Round Rock Chamber, during the June 8th meeting.

What does this mean for Austin? Stay tuned by following my blog for more information on the latest Austin developments, commercial projects, and local real estate. Feel free to email me at  tmcneil@kw.com to chat more about this “Texas Ave” project and if you’re curious why Austin is my favorite place in the world!

Known for being a bustling city of development, Austin is now also experiencing an industrial boom – with industrial eyes now set on a small town bordering the capital. The city of Lockhart looks to be the perfect next destination for an expansion of industrial developments, especially as news of Titan Development Ltd. setting their sights on this area for the continuation of their Central Texas projects comes to light.

So, what are the benefits of Lockhart for industrial developers? First, the city is close to the Austin-Bergstrom International Airport, and State Highway 130 is a huge draw for companies expecting a large amount of travel. Second, Lockhart is nestled between Austin and San Antonio, with the potential to dip into both job markets. With a massive supply of available land, more affordable pricing, and public incentives, industrial giants are increasingly attracted to Lockhart. Corporations like Samsung Electronics Co. Ltd. and Tesla Inc., and several others are already making their way to the city.

While this industrial boom in Lockhart is quickly picking up speed, it comes as no surprise to city officials and residents that have been preparing for these developments. With a pro-business attitude, the Lockhart community has been investing in industrial-friendly infrastructure, such as roads and wastewater treatment systems. This support from Lockhart officials is attracting developers from all across the state. Titan is already developing a 45-acre Lockhart Industrial Park 130, expected to span 650,000 square feet. 

The city’s interim Economic Development Director, Mike Kamerlander, commented on the promise of Lockhart’s future industrial empire. “I think our city is very pro-business and wants to grow the industrial sector here in Lockhart, which is also a welcomed revelation to many companies looking around the Austin area,” he said.

Learn more about the industrial development boom in Austin and what’s happening around our favorite capital by following my blog or contacting me at tmcneil@kw.com with any questions!

Austin is springing forward into the season with news of two mixed-use development projects coming to the area. Keep your eyes peeled and check out some details of these exciting projects below.

CSW Far West Development

While filings are still in the preliminary stages, Far West Boulevard in Austin is standing to gain hundreds of new apartments and plenty of upcoming retail and restaurant space with Central Southwest Texas Development LLC’s latest project. This development is set to be developed at 3525 Far West Blvd in Austin, featuring several five-story buildings and a six-story garage across 3.9 acres of land.

Currently, that lot is occupied by a Frost Bank drive-thru and parking lot. The land was purchased by CSW in December 2021 and was appraised at nearly $3.4 million. According to a recent filing, the current development project is projected to cost CSW $50 million.

With no available site plan, the layout of this development remains unclear. However, CSW has announced plans to qualify for the city’s vertical mixed-use density bonus program. This fantastic program allows Austin developers to build higher than typical in exchange for creating affordable housing. To meet these goals, CSW will reserve 10% of residential space for residents making 80% of the median family income level!

AJ Capital Tower & Hotel

Just south of the University of Texas campus, plans for an 18-story project are beginning to take shape. The Nashville-based developers, AJ Capital Partners, have announced plans to transform a half-block radius surrounding Guadalupe and 18th streets. Their recent site plan filed with the city shows the demolishment of the site’s current occupant, an office building, with plans to develop an astonishing 18-story tower.

While the specifics of this project remain secretive within AJ Capital’s walls, we can look at the developer’s exciting portfolio to further speculate what is to come. The current operatives of the boutique hotel chain Graduate Hotels, AJ Capital has a current expansion plan in Dallas that is already under construction. This project would be the company’s first development in Austin and is one for the books!

Learn more about the beautiful city of Austin by checking out my blog or contacting me at tmcneil@kw.com with any questions!

Plans for an exciting new development in Austin, a mid-rise located at Fifth and Walsh Streets, had begun to take shape early this year. While still in the early stages of development, from permitting to designing, this project spearheaded by Endeavor Real Estate Group LLC was making headway. However, as the market shifts, these plans seem less and less likely.

The five-story tower, planning to rise over 75 feet tall, would cover multiple lots in a half-block radius. This space in downtown Austin is expected to be 204,000 square feet. The ground floor would primarily house retail space, with four stories of underground parking. This Endeavor project was projected to cost roughly $61 million.

So, why has further development been halted?

The Austin Business Journal quoted Josh Lickteig, principal at Endeavor, on the recent halt for this downtown project: “We’re still in the permitting and design process, so we’ll kind of wait it out and see how that goes over the next 12 to 18 months and see if it’s worthwhile to pull the trigger on the building,” Lickteig said. “And if not, then we’ll pivot and do something different.”

Endeavor’s Impact On The City

A prominent commercial developer in our beautiful capital city, Endeavor has had a hand in some of our favorite Austin establishments, from The Domain in North Austin to South Austin’s Southpark Meadows shopping center. This developer is expanding to unknown territory in downtown Austin as well, with projects like the IBC Bank Plaza and a local office tower on Fifth Street under their belts already.

What Does This Mean For Austin?

Endeavor officials have maintained that they will keep an eye on the office and commercial markets while this project hangs in development but have mentioned pivoting to different things if the time comes. Lickteig has even gone on to say that they aren’t turning away from the prospect of residential, retail, and hospitality developments in the future, so keep your eyes peeled!

Discover more local business updates, commercial projects, and why Austin is the best place to live and invest by checking out my blog or contacting me at tmcneil@kw.com with any questions!