Now that Stephen Ross’ Miami Dolphins face lengthy odds to win the Tremendous Bowl — having misplaced to the godforsaken New York Jets — the billionaire developer seems to have a distinct title in thoughts: King of Austin.
Or not less than, king of 1 neighborhood there.
In late September, Ross’ Associated Corporations shelled out $65 million for 500 South Congress Avenue, a six-acre web site simply south of Girl Fowl Lake within the surging Texas metropolis. Earlier that month, the agency introduced two workplace tasks within the neighborhood: A 490,000-square-foot improvement at One Girl Fowl Lake and a 107,000-square-foot workplace at 901 South Congress Avenue.
All three websites sit a stone’s throw from the Equinox gymnasium at 1007 South Congress, an outpost of the upscale health chain owned by Associated executives. That property is price an appraised $1.95 million and traces to Equinox’s New York headquarters.
The agency’s unfold quantities to one thing of a Associated firm city on South Congress. The tasks kind a house base for Associated’s rising Texas portfolio because the agency — whose estimated $60 billion of holdings consists of luxurious condominiums, workplace buildings and rental residences in New York, Florida and California — expands into the Lone Star State.
A few of Associated’s plans are clear. One Girl Fowl Lake, the bigger of the agency’s two deliberate workplace buildings, will break floor in 2023 and wrap up building by 2025. Renderings present it should function all the trimmings of Associated’s Class-A workplace areas in New York and Los Angeles, particularly floor-to-ceiling glass partitions, wraparound balconies and ample inexperienced area.
Associated goals to begin constructing the smaller workplace constructing subsequent yr and end it by 2024. It is going to be constructed out of mass timber, an eco-friendly materials not usually used however gaining recognition throughout the nation.
Austin leads the nation in workplace attendance, based on card swipe information from safety agency Kastle Programs. Whereas sublease availability rose within the third quarter, high-end new building like Kilroy Realty’s Certainly Tower have continued to vacuum up leases within the post-pandemic surroundings. All advised, there’s nonetheless demand for high quality workplace area in Austin.
“You’ve bought a market that basically isn’t overbuilt,” stated Travis Rogers of Stream Realty. Specifically, the realm south of Girl Fowl Lake has develop into one of the crucial in style for brand new improvement.
Stream lately completed RiverSouth, a 15-story, glass-walled workplace constructing on South First Road. Close by, Endeavor Actual Property plans a six-tower redevelopment of the previous Austin American-Statesman HQ on the river.
“South of the river has by no means actually had workplace buildings of scale,” Rogers stated.
With few thoroughfares throughout Girl Fowl Lake, neighborhoods south of the water have develop into more and more in style for corporations whose workers stay in wealthier South Austin enclaves akin to Barton Creek.
Regardless of Austin’s comparatively excessive return-to-office numbers, the workplace emptiness charge nonetheless sits at 21 p.c, based on JLL’s third-quarter report. Providing workers the chance to skip site visitors into downtown by staying south of the river may be priceless to employers.
Associated’s plans for 500 South Congress aren’t clear, however the buy value of practically $11 million an acre suggests it expects critical returns. Elsewhere in Texas, Associated has reacted to skyrocketing multifamily rents by buying the 520-unit Arium Creekside Flats in Dallas.
Whereas the agency’s latest strikes recommend a renewed push in Texas, this isn’t the agency’s first rodeo: In 2014, Associated purchased 21 condo buildings totaling some 3,000 items in Midland and Odessa.
Nonetheless, Associated’s Texas property roundup is a comparatively new endeavor. The agency nonetheless hasn’t even added Texas to its web site’s listing of areas, which incorporates the whole lot from New York and Florida to smaller markets like Irvine and Santa Clara.
Associated can also be hiring in Texas, with 30 job openings posted on its web site, together with for a vice chairman of operations primarily based in Dallas. However Mike Iannacone, an govt vice chairman on the agency, has emerged as Associated’s man in Texas. He advised the Austin Enterprise Journal that he has moved to Austin.
Iannacone beforehand labored for Associated in New York, the place he led the agency’s redevelopment of One Madison, a 60-story rental constructing at 23 East twenty second Road. That venture, a partnership with HFZ Capital Group, guess on luxurious within the midst of New York’s rental increase, concentrating on a $50 million price ticket for its triplex penthouse. (The condo in the end bought for $43 million, property data present.)
A spokesperson for Associated didn’t make Iannacone accessible for an interview concerning the firm’s plans for Texas.