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Condo - spec rental units
There is some confusion about what constitutes a condo or condominium. Technically a condominium is a form of ownership where the owner of each condo unit owns the part of their unit "from the paint in" and a percentage of all the common area. The common area of condos includes but is not limited to: ALL THE LAND, building exterior, roof, parking areas, and yards (even though some allow for "exclusive control" of certain areas like yards.)
However, the use of the term condo has come to be used in conjunction with condos and "condo - spec" apartment rentals. Apartment buildings have to meet city and lender requirements to be able to be condo- converted or sold individually as condos. Therefore, those requirements are know as condo-specifications or condo specs. (cont. below)
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Some condo specs include 3" of concrete between the floors and double wall construction. Both of these features help dramatically with soundproofing. Overall condos are considered a "step above" the average apartment.
There are very few true condo spec apartments in Austin.. We are familiar with most of them and can help advise you if you are interesting in condo spec apartments.
There is also a perception that condos are somehow like townhouses or include a yard or garage. That can certainly be the case in a very few circumstances, but the norm is that a condo is a "glorified aparftment".
Condo projects….
$45M in projects on tap
A new crop of condos and mixed-use space is popping up in South Austin. Austin's Avera Development is planning to invest nearly $45 million in 3 new projects along South Lamar Boulevard and South Congress Avenue (SoCo). Together, the developments will contain more than 165 units and have a market value of more than $70 million.
Construction on The Ivey on Kinney, in South Austin. began in 2004 and should wrap up in the spring of 2006. So far, 41 of the 45 units have been sold. Many developers have decided to revive other older parts of town, primarily north of Town Lake. But this company has been attracted to 2 of South Austin's best-known streets, largely because it can deliver a product that's less costly than popular downtown condos. South Austin is the true value alternative -- residents can give up concrete and traffic and get hike-and-bike trails and trees
The 3 new projects are:
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The Magnolia on South Lamar, a 101-unit project at 1201 South. Lamar, just across from the Alamo Drafthouse. Plans are to invest roughly $30 million to $35 million in this project, which will feature a parking garage and 21,500 square feet of retail, office and restaurant space. The site has frontage on Lamar Blvd and unobstructed views of downtown. The condo units will range in price from $200,000 to $600,000. The1stunits will be available in late 2006.
- ·The SoCo Lofts, a 40- to 55-unit project at 304 West Alpine Rd, across from St. Edward's University. Avera plans to invest roughly $8 million in this project. Units will range from $200,000 to $250,000 each. The condo units will be available in the summer of 2006.
- ·The Boulevard Lofts, a 26-unit project at 1702 South Lamar,. Plans are to invest $6 million in this project, with units ranging in price from $300,000 to nearly $500,000 to be available in the summer of 2006.
. Construction on each is set to start by the end of the year. Danny Roth, a principal at Southwest Strategies Group in Austin, helped find the Alamo Drafthouse's new home on South Lamar says
"I think the market for 'close to downtown, slightly cheaper' should be huge,"
THE MYSTERIOUS AUSTIN MARKET
Which MSA has the highest rents in Texas? Which MSA ranked 23rd out of 25 in average first quarter occupancy rate? What MSA showed a slight upward tick in rents in the first quarter of 2004 while remaining in the bottom five MSAs for year-over-year rent changes, a decline of more than 2%? And how can the answer to all these questions be the Austin MSA?
Austin presents a confusing picture for the real estate investor, It was once a hot high-tech growth area, dominated by Dell Computers, the huge and prosperous University of Texas, and the country music industry. Rental product tended to be relatively new, high end, and typically very specialized to its market. But the recession of the early twenty-first century froze Austin's job growth and then its population growth, and then rents and occupancy began to turn downward. Rental trends have shown a steady decrease for the past two years, while average occupancy rates have drifted around the 90% mark. In the first quarter of 2004, there were finally some signs of stabilization in rents, but this stabilization is in part contradicted by another downturn in occupancy.
Another factor that bodes well for the future of the Austin market is an improved balance of supply and demand. Building has slowed down in the past several years, and the permit process in the area is one of the most rigorous in Texas, insuring that there will be no quick turning on of the pipeline. So with the population once again growing and the supply of rental housing growing more slowly, demand should eventually put upward pressure on occupancy and then on rents. Perhaps in future the Austin market will be less contradictory.
Austin Texas condos: Austin Tx condo condominium and townhouse descriptions and specials
