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As the real estate market continues to flourish in central Texas, Austin-based Stratus Properties announced Tuesday that it plans to develop a 34-story, 300-apartment high-rise in downtown Austin.
The tower is scheduled to be built on West 12th Street between San Antonio and Guadalupe Streets, a few blocks west of the Texas Capitol, at a cost of about $ 185 million, said Beau Armstrong, chairman and CEO of Stratus.
The existing Delta Kappa Gamma building at 416 W. 12th Street will be demolished to make way for the new tower, Stratus said. A train stop is planned at the 12th and Guadalupe.
The historic AO Watson house, which is located next to the Delta Kappa Gamma building on West 12th Street, is being renovated and expanded to provide convenience to residents of the new apartment tower while preserving the property’s historical and architectural features, said Stratus. Those amenities could include a club, neighborhood restaurant, private pool and meeting room and outdoor garden, Stratus said.
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AO Watson’s house was built in 1894 by noted architect Arthur Osborn Watson as his personal residence. The post-Victorian structure is at 402 W. 12th St.
Based on preliminary plans, the proposed Tower of Stratus – named Annie B – is expected to be 400 feet tall. The zoning has been approved, Stratus said.
The tower is named after Annie Webb Blanton. Blanton, an American suffragist and pioneering educator, founded the Delta Kappa Gamma Society, the international honor society for female educators. Blanton was the first woman to be elected president of the Texas State Teachers Association.
Construction on the tower is slated to begin in early 2023, with expected completion in 2025, Stratus said.
Armstrong said the proposed project “takes advantage of the booming residential real estate market in Austin and is another addition to our growing pipeline of multi-family projects.”
The new tower will have an area of 420,000 square meters including retail outlets on the ground floor.
Armstrong said the tower will not face height restrictions in some locations designed to protect views of the State Capitol building. He said the skyscraper will have “unobstructed 360-degree views of the Capitol, downtown Austin, the University of Texas campus and West Austin.”
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Armstrong said Stratus, who developed the W Hotel & Residences in downtown Austin, learned from the experience, “Many people really enjoy the action in the central downtown entertainment districts, but many others prefer a quieter, urban living experience. We think the Annie B is perfect. ” addresses this market segment. “
Stratus’ subsidiary completed the land purchase for the new tower on September 1st. Stratus expects to finalize the development plans in the next 12 to 18 months.
Funding for the land purchase and pre-development costs is in place, Stratus said. The financing includes a $ 14 million land purchase loan to the limited partnership – Stratus Block 150 LP – guaranteed by Stratus.
The remaining land purchase and pre-development costs will be funded by approximately $ 21 million of equity that Stratus and private equity investors brought into the limited partnership. In return for the previous development costs and cash, Stratus will receive 25% of the limited partnership’s equity and will manage the project.
Stratus said “preliminary development plans are subject to change and the expected size, scope and cost of the project could change materially”.
Charles Heimsath, a real estate consultant who worked for Stratus on the project, said he anticipates strong demand for the residential tower.
“The demand for apartments in the city center has risen sharply since the end of last year, rents and occupancy are now exceeding the level of 2019 before the pandemic,” said Heimsath. “The downtown northwest quadrant begins with the construction of 827 West 12th Street (another apartment project) which is already underway in the street to see more. The Stratus project will be the largest residential tower to be built in this part of the city a super luxury product in a currently underserved market. “
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