North American Properties plans to build a mixed-use project with 343 apartment units
Town center concept planned for Round Rock's La Frontera
A proposed "town center" in the La Frontera development is expected to be the most dense -- and the first -- vertical mixed-use project in Round Rock.
North American Properties Inc. has about 9 acres under contract at the southeast corner of Hester's Crossing and La Frontera Boulevard. The seller is 35/45 La Frontera LP and is located across from the Austin Marriott North at Round Rock.
North American Properties plans to build a mixed-use project with 343 apartment units above 50,000 square feet of other uses such as retail, restaurants and offices. The project will range from 1 to 4 stories tall.
The project is being spearheaded by Mike Pacillio, a partner with North American Properties who works in the company's Plano office. A name for the project hasn't been chosen, although a site plan filed with the City of Round Rock calls it La Frontera Square.
Pacillio says he liked the La Frontera property because it's already a mixed-use project and it will benefit from new toll roads.
The La Frontera project marks Pacillio's return to the Austin market and his first project in Round Rock. While with Dallas-based apartment developer Ewing Properties, Pacillio helped develop two high-end apartment complexes in Austin -- Los Arboles and Rancho Las Palmas. Those properties later were sold to Summit Properties Inc., which renamed them Summit Arboretum and Summit Las Palmas. The properties are now are controlled by Equity Residential under the names The Arboretum at Stonelake and River Stone Ranch.
Vining also says the project is on track to be Round Rock's first project featuring apartments stacked on top of other commercial uses. It will be "the most dense project in Round Rock," he says.
Atlanta-based Cousins Properties Inc. recently bought 45 acres on the south side of SH 45, with plans for either a retail or mixed-use project. An additional 43-acre tract along the SH 45 frontage, zoned for 1.8 million square feet of offices, is on the market.
La Frontera is a 328-acre mixed-use development at I-35 and State Highway 45 North. It is home to more than 880,000 square feet of retail space, with more than 60 stores and restaurants. It also features 2 apartment complexes and two office buildings.
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Downtown tower in the works
The developer of Kyle's Plum Creek is planning a $50 million to $100 million project on one of the last remaining undeveloped lots along Congress Avenue in downtown Austin.
Benchmark Development Inc., an Austin-based subsidiary of Spanish real estate company The Villar Mir Group, purchased roughly a third of a downtown block at the northwest corner of Second Street and Congress. The company plans to develop a mixed-use tower, with 200 to 250 luxury condominiums, as well as a spa, fitness center and pool. The project might include retail and office components.
"We think this location really commands a premiere, high-quality project, and we're going to do everything we can to make Austin proud," says David Mahn, vice president of Benchmark Development. "This is a great opportunity for us. A Congress address is something that's very special." Mahn says the luxury project will target the upper end of the downtown market.
Four or five architecture firms have decided to participate in a design competition for the new tower, Mahn says. He expects to decide on a winner in March. Part of the planning process will include coming up with an appropriate name for the project, he says. To maximize density, Benchmark Development intends to ask for a variance from the City of Austin. The site is governed by Central Business District zoning, which allows a floor-to-area ratio of 8-to-1. Because the land is roughly 29,000 square feet, Benchmark Development can build a 232,000-square-foot structure. The variance would let Benchmark go beyond that square footage.
Mahn says greater density is appropriate for the location and fits the city's goals for downtown. "The city has previously has granted variances, and we hope they will give our project careful consideration," Mahn says. "There's a lot of excitement in the downtown area -- the Second Street corridor is an area the city has targeted for lots of retail development," Mahn says. "We believe our location is going to be right in the heart of that corridor."
He anticipates filing plans with the city in second quarter of this year and breaking ground about a year after that. Construction is expected to take two years.
Heimsath, a longtime observer of the local real estate market, says he doesn't think there's reason to be concerned about the high number of condo projects planned for downtown. The market can absorb about 200 to 300 units a year, he says.
"My general sense about the downtown condo market is that while there are many projects in the planning stage, each project seems to have a different character and is addressing the market at a different price point with a different location," Heimsath says.
This will be Benchmark's first local high-rise, but the company has a long history of development in the region.
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