Texas Realty Blog

Oct. 18th Registration Deadline for Annual East Austin Summit

October 18th is the last day to register for this year's annual East Austin Economic Summit. Many of the community initiatives that were started in 2004-2005 have been completed and others are on the way. The annual conference is sponsored by PeopleFund.org, who used to be the Austin Community Development Corporation. PeopleFund changed it's charter to move towards land development and land trusts to help preserve affordability in East Austin.

As many of you are aware, the area is undergoing a great deal of appreciation. Gentrification has taken a stranglehold on the community and it's becoming impossible for many current residents to stay in the area. I attended the 2005 Summit and there were hundreds of attendees. I met people from all walks of life and political affiliations.

This year's summit should be even more popular since the news coverage of the issues raised awareness. Even though I already purchased tickets, I have a family member's birthday to celebrate, so may not be able to make it. I hope to see everyone there otherwise. If you're interested, RSVP by the deadline.

City of Austin Lauches Campaign to Attract Tech Companies

The City of Austin has a goal to attract and grow tech company startups. They've launched a new website geared towards HR managers and CEOs of tech companies from all over the world. The purpose of the site is to clearly explain reasons why companies may want to come to Austin and to provide the necessary data for them to make a good decision. AustinHumanCapital.com is the product of a committee within the Greater Austin Chamber. The website explains what our tech sectors are, how they can get funding, local government resources, and cost of living in Austin.

I mention this website because it has good information for businesses, buyers, sellers, and investors. It also provides the insight of where the city would like to move in upcoming years. They've set their sites on becoming a destination for tourists and companies. I've read about other initiatives to increase awareness of Austin.

Investors should be aware that the city has goals to add tens of thousands of jobs over the next few years by helping small tech companies compete and grow, but also by branding Austin as a great city to live in (which it is).

Small Business Opportunities Up for Grabs at Mueller Redevelopment

I was at an event Friday, October 13th where Catellus visited. Catellus is the master developer for the Mueller Redevelopment. The event was organized by BigAustin. U.S. Senator John Cornyn was visiting to discuss issues with small businesses. Matt Whelan, from Catellus, gave us an update on the Mueller Project.

Catellus is working with the city to attract small and/or local retail and service operations to fill their first commercial retail and office spaces. There are two available buildings for phase I of the project. Preferred tenants include:

1. Personal services such as salons, barbers, dentistry, optometry, dry cleaner, physical fitness, shoe repair, or small wireless shops.
2. Professional services such as real estate, insurance, tax preparation, or financial services.
3. Small retail shops such as florists, pharmacy, religious, gifts, fabric, wine, art and framing, sporting goods, or hobby-related.
4. Restaurant such as pizza, fast-casual, sit-down Mexican, and ice cream.

At this time, there are several national retail tenants such as Bed, Bath, & Beyond, Marshalls, and Best Buy. For companies interested can email us for more info .

October 15th is Mueller Family Day

The 700+ acre Robert Mueller Airport Redevelopment Project is still underway, with the first residential projects expected to be completed either Fall 2007 or early 2008. Catellus, the master developer, is planning to hold a Mueller Family Day this Sunday, October 15th from 2-4pm. There will be refreshments, family activities, and more information available.

The purpose of the Family Day is to keep the community involved and interested in the redevelopment. I've been writing about it extensively and have been following all details as closely as possible.

Their latest news is on their website and you can sign up to receive alerts.

Foreclosures fall in El Paso, TX

Earlier this year, El Paso was undergoing a real estate makeover. I haven't been keeping up on the market that much since then, so wanted to revisit their real estate market. The following story is from the El Paso Times.

The number of El Paso residential properties entering some phase of foreclosure declined almost 15 percent in the first eight months of this year, while those numbers have risen substantially in Texas and the nation, data from a foreclosure tracking company show.

El Paso had 1,820 residential properties go into some phase of foreclosure, from notices of default to full foreclosures sold at auction or repurchased by the lender, from January through August, compared with 2,137 properties for the same months in 2005, data from California's RealtyTrac show.

El Paso had one foreclosure action per 123 households in the first eight months of the year, which was lower than Texas overall but higher than the national rate, the RealtyTrac data show.

According to the article, appreciation is still up in the area. I have family members looking at land in the city since it's so cheap, but it's not for investment purposes. They're wanting to buy in El Paso because it would be less expensive that central areas such as Houston or Austin.

Read more about El Paso Real Estate:  El Paso Times - Foreclosures fall in El Paso.

San Antonio River Authority Expanding River Walk

Here is an update the San Antonio market, which has been appreciating for the past few years. The Business Journal reported that the San Antonio River Authority (SARA), has begun releasing construction bid documents for the planned $40 million Museum Reach/Urban segment of the San Antonio River Improvement Project. The team is now moving into the design phase.

The Museum Reach leg of the San Antonio River Improvements Project involves the redevelopment of the river four miles from downtown north to Brackenridge Park. Local leaders want to extend the River Walk -- an important tourist draw that attracts millions of dollars for the city due to its eclectic mix of restaurants and stores.

Tourism and hospitality officials say the Museum Reach project, once completed, should open the door to new hotel and restaurant development opportunities along currently undeveloped river-front real estate.

The $40 million Museum Reach/Urban segment involves developing infrastructure along a 1.5 mile extension of the River Walk from Lexington to Josephine Street. This segment of the project involves the excavation and stabilization of the river channel and the construction of a lock and dam to support the continuation of passenger river barges traveling north on the River Walk.

The winning bid team also will work on sidewalks, stairs, access ramps, irrigation, lighting and perform rock masonry work.

Ready more online: SARA moves into construction phase of River Walk expansion project.

East Riverside Project Biggest Redevelopment Project in Austin

As you may be aware, there's a huge redevelopment effort in South Central Austin near Riverside Drive and Barton Springs Road. This is a very popular area and the development should sell quickly. This recent announcement has been covered on the news extensively. I found a good article about it on the Austin American Statesman.

A local real estate investment firm plans an 840-unit apartment and condominium complex on East Riverside Drive, the biggest project by far in the residential boom in and near downtown.

The project will replace apartment buildings at 222 and 300 East Riverside with three 18-story buildings, said Richard Suttle Jr., an attorney for the developer. Two condo buildings each would have about 243 units. An apartment building would have about 352. All buildings would include parking garages. CWS would give the city about an acre of lakefront land worth millions of dollars as part of the project, Suttle said, as well as room for a park police substation.

Again, this is just in the plans. The developer will need to garner support from the residents and final approval from the city. I'll keep you posted as I learn more.

Link: East Riverside project would add apartments, condos, extend hike and bike trail.

Austin & Texas Real Estate Market Forecast: Buy LAND!

Last night, I attended a real estate forecast at a CREW Austin event. CREW is a highly-respected organization for commercial women in real estate. It's a great group to be involved in because of the high level of trust and ample networking opportunities. I'd say 2/3rds of the attendees were women, but there were a lot of men present.

The forecast was given by Ted Jones of Stewart Title. He's a very entertaining guy and we had a lot of fun. We discussed the Austin and Texas real estate markets. According to Ted, we are currently overbuilding in Austin, as was happening in California and Florida years ago.

1. Problem #1. Many investors and home buyers are putting less than 10% down on their properties. Around 43% of homes sold in our area were zero down mortgages. Since appreciation is not slated to continue at it's current rate, these homeowners are going to be in trouble when more inventory is available.
2. Problem #2.  Investors and out-of-town buyers hit our market hard in the past 2-3 years. Since many of the homes sold are to people who do not plan to keep them, there will be a flood of inventory since most plan to sell within the next 2-5 years.
3. Problem#3. Ted compared jobs to home builds. We are at .70 jobs for every home that is built when we should be at at 1:1 ratio. Part of this goes back to issue of out-of-town investors and speculators, who are buying much of our inventory at full price even when the homes are overpriced.

Spring condo project gets $70 million construction loan; Downtown Austin gets mini-grocery store

As you can read from the past several months of posts, the City of Austin is really making a move to transition downtown to a more residential area.

According to the Austin Statesman, "Royal Blue Grocery, downtown's first neighborhood grocery story, opened Tuesday at 247 W. Third St., near the Second Street retail and entertainment district. The 1,000-square-foot store will cater to downtown's growing resident population, stocking staples such as milk and eggs, fresh produce and prepared foods, wine and beer...The store will be open daily from 7:30 a.m. to midnight."

Whole Foods has been a popular attraction to Central Austin. Iti's located near the intersection of Lamar and 6th Street, which is west of Downtown. Since most upcoming mixed-use residences are being built near 2nd Street, it only makes sense to have more retail operations in that area.
 
Also in the works is the Spring Condos, which will be in this area as well."The International Bank of Commerce is providing a $70 million construction loan for the Spring condominiums, to be built at Third and Bowie streets downtown. Developers said they plan to start work on the 41-story, 260-unit tower in early 2007, with completion expected in the fourth quarter of 2008".

Now is definitely the time to buy central. Some locals think $250-400k for a small condo is expensive, but they need to check with other residents of large cities. Downtown living is often convenient, shiek, and profitable in the longrun. There's only so much Central Austin living to go around and these new condos will present good opportunities for investors.

Link: Spring condo project gets $70 million construction loan; Downtown Austin gets mini-grocery store..

Ritzy apartment tower planned for Rainey St.

Austin leaders want to encourage more housing downtown, setting a goal of having 25,000 people living in the city's center in the next 10 years, a fivefold increase from current levels.

From the Austin Statesman...

California firm wants to break ground in March on the 31-story Legacy @ Town Lake. More high-rise living is headed downtown, this time in a 31-story luxury apartment tower with Town Lake views slated for downtown's southeastern edge. Legacy Partners, based in Foster City, Calif., plans to build Legacy @ Town Lake at Rainey and Cummings streets.

Last year, the Austin City Council set the stage for redevelopment of the 30-acre Rainey Street neighborhood by giving it the same higher-density zoning as the rest of downtown. Many residents said they were ready to sell their homes, many of which date to the 19th century.

The tower would have 184 apartments, with units averaging about 1,100 square feet and renting for about $2,100 a month. Penthouse units would rent for about $6,500 a month.
Legacy is buying about three-fourths of an acre for its project from landowners including Perry Lorenz and Robert Knight. Legacy expects to break ground in March, and the building will be ready for the first tenants in summer 2008.

Link: Ritzy apartment tower planned for Rainey St..