New Round Rock apartment complex close to Dell, Hospital, Mall
City North at Sunrise Ranch apartments
Near I35 at Old Settlers Blvd and Round Rock Rd
Rents will range from $800-$1200/mo
First units expected to be available summer 2008
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Wave of new apartments under way
Developers, most analysts say demand in Austin is strong enough to fill new space.
2008
The Austin apartment market is making a comeback. A wave of apartments is under construction, and developers are counting on the area's appeal to pull in more residents to fill the space. More than 10,000 apartment units are planned to open in the next 2 years, according to first-quarter figures by Austin Investor Interests LLC, which analyzes rents and occupancy rates. More than 1,040 units were already added during the first quarter of 2008.
"We are very bullish in Austin in general and in particular, the downtown area," said Timm Wooten, executive vice president with Martin Fein Interests Ltd., the Houston-based developer. "The desire to live close to downtown and the growth of Austin will support it," he said. Many of the developments are popping up in South Austin, Central Austin and downtown and include the Monarch, Red River Flats and AMLI on Second Street.
At the Domain in North Austin, 390 luxury apartments are saddled into the open-air upscale development, with one-bedroom units starting at $999 per month and going up to $2,244.
Monthly rents also are on the rise, increasing an average of about $7 in the first quarter of the year, according to Austin Investor Interests. Renters are paying an average of $766 per month. It's very healthy right now, and landlords are taking advantage of it by raising the rents.
But Robin Davis, manager of Austin Investor Interests says. "Occupancy is remaining flat because we have an increase in the rental base. It's not because there's not demand." Management companies are trying to compete against the new apartments and condos that are becoming available, she said. "We have a plethora of condos that are going to turn into rental housing when they don't sell," she said.
Others who study the market, as well as developers, disagree and still expect occupancy rates to remain steady. At 93.5 percent in the first quarter, apartment occupancies are still off from the peak levels of 98.2 percent in December 2000, during the tech boom. The job losses that resulted from the tech bust then clashed with a building boom, causing the occupancy rate to plummet at the end of 2000 to 88.4 percent in the first quarter of 2002. Even as late as 2004, some apartment projects were posted for foreclosure.
Now, with people moving at a faster clip to the Central Texas area from other states, developers expect more residents to look to the rental market before they buy. And occupancy rates above 92 percent equate to a landlord's market, said Charles Heimsath, president of Capitol Market Research, which tracks the apartment market.
"The market is really solid and will continue to be strong into 2008," said Heimsath, who is forecasting 5,500 units to come on line this year. "We should easily be able to absorb those units." Heimsath also predicts that the rents — which increased 6 percent citywide last year — will continue to climb, from 3 percent to 8 percent this year, depending on the proximity to downtown.
The amenities offered at complexes also are changing, with hot tubs and laundry rooms disappearing and being replaced with in-room washers and dryers, granite countertops, free cable and wireless Internet capabilities
The Robertson Hill Apartments in East Austin just opened the first of 290 upscale units this month. The complex, on San Marcos Street between Ninth and 11th streets, features one-bedroom apartments that start at $1,240 and two-bedroom units going for $2,600. The increased demand for urban living is propelling the wave, analysts say.
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Southpark Meadows has two apartment projects totaling 670 units planned
Homes and apartments will soon spring up around Southpark Meadows, a 1.6 million-square-foot shopping center being developed by Endeavor Real Estate Group LLC at I-35 and Slaughter Lane.Preparations for streets, utilities and drainage for the first 121 lots will begin next month. Construction on the homes will start about six months later, with the first buyers expected to move in next April or May. Prices will range from $280,000 to $350,000. A second and possibly third phase would add another 260 homes in similar price ranges.
Grand Prairie–based Fairfield Residential LLC has two apartment projects totaling 670 units planned for the area. Grading work will begin soon on the first project. The 426-unit initial phase will be ready next spring, with second-phase units following shortly after. Final construction on both will wrap in late 2008.
The average-size unit in phase one — 879 square feet — will rent for about $990 a month, while the average-size unit in phase two — 926 square feet — will rent for about $1,075 a month
Austin rental market
Occupancy: 92.6%
Price $753/month
Rental Rate 88.7 cents per sq ft per month
Size: 849sf
Recently Opened
9 communities
138,300 units
Under Construction:
20 communities
4,750 units
Proposed Construction
21 communities
5,680 units
Source:Texas Apartment Association magazine
Apartment Data Services, Inc
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Developer chosen for first apartments at Mueller Airport
Simmons Vedder will build the first residential component in
former airport's transformation.
After years of planning, the transformation of the former Robert Mueller Municipal Airport is ready for takeoff. Major components are under construction, including the Dell Children's Medical Center of Central Texas, offices and the first stores.
MUELLER MULTI-FAMILY CONSTRUCTION UNDERWAY
Construction has begun on the Mosaic at Mueller the first multifamily development at the former Robert Mueller Municipal Airport.
The Mosaic at Mueller is a $45 million, 440,000-square-foot complex with 442 apartment units. It is being developed by Austin- and Houston-based Simmons Vedder & Co. in partnership with Dallas-based Crow Holdings Realty Partners IV LP.
Mosaic at Mueller will include one-, two- and three-bedroom units ranging from 580 to 1750 sf. Monthly rents will range from $850 to $2500.and include swimming pools, a clubroom, fitness center and a business center.
Leasing begins the summer of 2008
There's already a list of people who want to live at Mueller, where apartments, townhouses, condominiums and single-family houses must meet strict green building and community design standards.
For example, the apartments will have heat-reflecting metal roofs and energy-saving features, and half of the construction debris will be salvaged or recycled.
In Austin, its highest-profile project is the apartment complex at the Triangle, a 22-acre residential/retail project in Central Austin. It's also a developer of two large mixed-use projects in Williamson County.
"It's exciting to add the first residential component to the Mueller redevelopment," said John Burnham, development mgr for Simmons Vedder. The rental units will be designed as one building but will have the appearance of four distinct buildings because of varying architectural designs. "It's a critical step in the redevelopment process.
The mixed-use development is the largest public-private venture in Austin's history and will transform the former airport into an urban village of homes, stores,and offices. The project is expected to add $1 billion to the city's tax base and house up to 10,000 residents and generate thousands of jobs.
Major medical facilities are under way, including the Dell Children's Medical Center of Central Texas, which is scheduled to open in 2007 and Strictly Pediatrics Ambulatory Surgical Center, a children's specialty medical facility.
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BEE CAVES GETS NEW RESIDENCES
BEE CAVES VILLAGE – Criterion Property Company LP, a company which previously has developed apartments in Massachusetts, has entered the Texas multifamily market with the Windsor at Bee Caves Village. The complex has 293 luxury units on Hwy 71, a nineteen acre site adjacent to the Hill Country Galleria and the Shops at the Galleria.
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CRITERION'S MULTIFAMILY DEVELOPMENTS
AUSTIN– Dallas developer Criterion Development Partners has purchased two parcels totaling 50 acres from Continental Properties Co. Inc. of Wisconsin. Multifamily developments are in the works for both.
Criterion has broken ground on the 330-unit Criterion at Onion Creek, which will go up on the 26 acres at Slaughter Lane and I-35. The development, which was designed by MSA Architects Inc. of Cincinnati, will be completed by mid-2008. WaterMark Construction LP in Addison is the general contractor.
The 400-unit Criterion at Harris Ridge will be built on 24 acres at Howard Lane and Dessau Rd. Construction will begin early next year.
Boston-based General Investment & Development Cos. will manage both properties.
Colonial invests $87M in Austin
The 3 new complexes, which all completed recently, added a total of roughly 1,000 new apartment units to the local market.
Birmingham-based Colonial Properties Trust owns or manages over 48,000 apartment units, nearly 8 million square feet of office space and 13 million sf of retail space.
Paul Earle, executive vp of the company's multifamily division.says "Austin fits the company's criteria for investment, with its top-quartile placement in terms of job growth, population growth and household income growth," "Austin ranks in the top five places to consider for investment opportunities." using their estimates
The 3 complexes here include:
Colonial Grand at Round Rock near U.S. Highway 79 and FM 1460. A 422-unit apt complex
Colonial Grand at Canyon Creek west of Lakeline Mall off RR 620, A 336-unit complex
Colonial Grand at Silverado Reserve - Parmer Lane in Cedar Park TX. The 250+ unit complex is accompanied by a 238-unit complex across the street. also owned by Colonial.Properties
efferson Properties was considered the dominant player in the local multifamily market during the 90s. By contrast, the Irving, based company doesn't have much of a development presence in Austin yet,
He says "It looks to me that Colonial is positioning itself to be the JPI of this decade,"
Heimsath is also quick to add Colonial has serious competition in its quest for market dominance -- for example, from Gables Residential Trust, which was purchased in June by a partnership managed by ING Clarion Partners., and Trammell Crow Residential., now Riverstone Res.
We're at pretty much an equilibrium market at 93% occupancy rate," He says. "Neither the tenant or the landlord has an advantage. When you get to 95 %, it becomes a landlord's market." Heimsath says
A 2007 market report on the Austin multi-family market shows signs of improving strength.
"Construction, has kept the number of new units added at a reasonable pace, allowing the market to absorb twice the number of units added for both of the first 2 quarters this year,although beginning to show signs of increase," according to the report, published by Austin Investor Interests LLC. "New starts and new submittals are also on the rise annually, with both now double the amount seen in the prior 12-month period."
For Immediate Help
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Austin-San Marcos, TX 5+ Family Building Permits
November 2007YearNumber of Dwelling Units Average Value per Dwelling Unit ($)
Number of Dwelling Units Average Value per Dwelling Unit ($)UnitsPercentValuePercent Change Change19802,862-16,900-
2,862-16,900-19814,9097224,50045
4,9097224,5004519824,782-328,50016
4,782-328,50016198316,16123820,500-28
16,16123820,500-28198411,950-2624,90021
11,950-2624,9002119858,970-2522,100-11
8,970-2522,100-1119865,954-3423,7007
5,954-3423,700719871,000-8319,100-19
1,000-8319,100-191988305-7068,900261
305-7068,9002611989 8 -97 75,0009
8 -97 75,00091990 0 -100- -
-100- -1991220-30,600-
220-30,600-199299635318,600-39
99635318,600-3919932,08410927,00045
2,08410927,0004519944,40311134,20027
4,40311134,2002719956,1333937,0008
6,1333937,000819966,484636,200-2
6,484636,200-219974,720-2740,50012
4,720-2740,5001219985,128934,900-14
5,128934,900-1419997,8495340,70017
7,8495340,7001720008,064341,0001
8,064341,000120018,345336,800-10
8,345336,800-1020025,570-3338,5005
5,570-3338,500520032,499-5554,50042
2,499-5554,5004220043,1062456,7004
3,1062456,700420055,2616953,300-6
5,2616953,300-6Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University
Note: MSA data is base on 1999 MSA definitions.
New apartment complexes in Austin, Round Rock & Cedar Park
New apartment complexes in Austin Texas: North Austin region of Colonial Properties Trust, Colonial Grand at Silverado in Cedar Park, Parmer Ln Lane, Colonial Grand at Round Rock TX, Colonial Grand at Canyon Creek off RR 620, Jefferson Properties, JPI, Gables Residential Trust, NG Clarion Partners,Trammell Crow Residential.
