Highland Mall – new urbanist site?

Posted on September 20, 2011 by pg1116 3 Comments

Do ACC’s long range plans for Highland Mall offer potential growth for existing neighborhoods that surround it? The recently disclosed long rang plans call for a mixed use development consisting of administrative offices, commercial and retail space and a residential mix.

Highland Mall’s long economic decline hasn’t supported surrounding neighborhoods; they have had to succeed despite the mall economic blight. But surrounding neighborhoods have succeeded in their own rights.

Brentwood/Crestview have benefited from the new retail and residential development around Burnet and Koenig. The Mueller Redevelopment has been successful with its planned grown into retail, office space plus a residential mix of single family homes, condos and apartments augmented by green space, trails and playgrounds. Anchored by the Dell Children’s Hospital Mueller is off to a great start.

Positioned between Mueller and the Brentwood/Crestview/Allandale are HM has been in decline for several years and has not benefited surrounding property values. Now with the potential to develop its 80 acres and (proposed) 2 million square feet of mixed use space, Highland Mall could be posed for a dramatic turnaround.

As an additional plus it has in place an urban rail station adjacent to the site. With the Downtown Austin Plan calling for the development of more rail transit from UT and Mueller it seems HM has a leg up on becoming an urbanistic site.

Both sales and prices in Brentwood (area 2) and Mueller (area 3) have risen this year. Other existing neighborhoods such as Windsor Park and Delwood have remained relatively flat in both pricing and sales.

So my point is if I were looking for a home in central Austin I would look from Allendale to Delwood. While these areas have been successful, Highland Mall may have the potential to further increase their value.

ACC, Austin Community College, Highland Mall , ,

Austin Sizzles – so Plan Accordingly!

Posted on August 25, 2011 by devm0406 Leave a comment

Austin is sizzling, even if its real estate market isn’t. Hot, dry summers may be the norm for the next few years, according to Bob Rose, chief meteorologist at LCRA.

Hopefully they won’t be as brutal as the Great Drought of 2011. So if indeed more of the same, what to do? Move!

Before you do, consider this. Severe weather is not limited to Central Texas.

The Mississippi Valley flooded this spring, Utah has record snowfalls and the East Coast (Washington, DC) was just rocked by earthquakes. I’ll take hot anytime.

Expect our summers to be hot and plan accordingly. Consider your home’s location: near shopping and entertainment so you won’t be homebound.

Make sure insulation is good enough to keep AC bills affordable. Landscape your yard to reduce water consumption.

At some point, though, you need to escape!

Fortunately, Texas has over 350 miles of coastline and its only 3 hours away from downtown Austin. So if you can’t afford the Caribbean at least head to Port O’Connor, Port Aransas, or Port Isabel for a few days.

I like Port O’Connor and if you’re a fisherman then you’ll love it. My favorite guide and lodge is 10th Street Lodge www.10thstreetlodge.com . Call Capt Jim and he’ll put you on the fish.

He took me to the Gulf surf on Aug. 22 and I limited out on big trout. (OK, all 3 of us limited out).

While the catch was impressive so was the weather. The temperature was in the 90’s, it was breezy in the afternoons and I didn’t want to leave.

So, in the dog days of summer, remember that Austin is made for escaping!

Downtown Austin, Real Estate

Autumn in Austin – Good Time to Buy

Posted on August 20, 2011 by devm0406 Leave a comment

Labor Day is just around the corner and fall is in the air. What?? Just kidding! Cooler, wetter weather does not look likely for the Austin area for the next couple of months.

Still, Labor Day traditionally kicks off the fall house-hunting season when home buyers like to compare values.
Why? Sellers who have held on throughout the year are anxious to close by year end. Time is running out for them as they hear the clock ticking.

Historically, Labor Day marks the end of the peak buying season and sales slow each month until year end. There are many distractions in the autumn for would-be buyers: football games (Can UT turn it around?), school activities, and political campaigns (Can Rick Perry appeal to northern voters?)

As you can see in the chart below from the Real Estate Center at Texas A&M, sales peak in June and fall most of the rest of the year.

Sales pick up a little in December as year-end buyers and sellers rush to meet deadlines. But October and November remain prime buying months that are often overlooked as other activities compete for people’s time.

Austin home prices will edge up 1% in 2012, according to the Case-Shiller Home Price Index. While not a big jump, this price increase means current inventory is continuing to dwindle.

Good homes are selling first and the remains are left for the unmotivated buyer.

Downtown Austin

Downtown Austin Needs Parks

Posted on August 12, 2011 by devm0406 Leave a comment

The historic drought gripping Austin and most of the state shows exactly why the city – notably downtown – needs better parks and green space.

Downtown Austin has turned into a Death Valley as office workers, residents and tourists stay indoors to escape daily temperatures of 105 degrees. It’s a heat island with little outdoor space to find relief.

On Aug. 25, the city council has a chance to improve the situation when it considers adoption of the Downtown Austin Plan (ftp://ftp.ci.austin.tx.us/DowntownAustinPlan/dap_pos_1-19-10_report-appendix.pdf) . Downtown parks and open space are key ingredients of the plan.

In 1839, Edwin Waller’s plan for Austin laid out four parks in the central business district. In addition, the creek system was fundamental in the early development of the downtown area. But we turned our backs on the creeks and ignored their potential.

Austin’s population has now surpassed the need for four small green spaces in the downtown area to cool off in.
And that’s where the Downtown Austin Plan offers promise. It envisages greenway areas of Waller Creek, Shoal Creek and Lady Bird Lake.

Their present potential is one of drainage. But they can be more – a necklace of green, wet areas with water features.
Austin should work to enhance the downtown area with the linear greenways of Waller and Shoal Creeks and Lady Bird Lake. Improving these three components of the downtown park system will create oases in an arid urban landscape.

These area need to be developed so that all of the downtown CBD will be within a five minute walk from one of these area.
Austin must develop a combined public and private stewardship program to fund and oversee these projects.

No one wants to visit or reside in a community that isn’t able to adapt and embrace its environment. The drought is anticipated to linger into 2012. Let’s acknowledge that droughts are a part of Texas weather.

Downtown Austin, Downtown Housing, Parks ,

Downtown Austin needs retail – not another hotel

Posted on August 3, 2011 by devm0406 1 Comment

Yet another hotel is being proposed for downtown Austin if the zoning is
changed at Congress Avenue and 8th Streets, according to the Austin
American-Statesman.

Developer Colina West Limited wants to build a boutique hotel, which would
be the 2nd one for the downtown area. Colina West plans a hotel, several
restaurants, a coffee bar and music venue.

If this plan comes to fruition, the developers stand to profit and tourists
will enjoy a new attraction. But local residents and downtown workers won’t
gain any of the goods and services that are desperately lacking in the
central business district – retail ones.

What downtown Austin needs is retailers. We need more retail outlets to draw
residents and diverse businesses to the downtown area. Hotels are for
tourists – retail benefits those who spend their time and money downtown.

Urge the city council to give incentives to retail establishments – call or
email city council members. Their contact information is here
http://www.ci.austin.tx.us/council/contacts.htm.

More retailers are needed downtown to add tax revenues, provide employment
and attract homeowners. See my blog of May 24th entitled “Downtown Austin
Needs Retail Space to Grow”. More than 22% of first floor space downtown is
currently occupied by hotels and restaurants, as you will see in the chart
from the Downtown Alliance.

To compare favorably to other dynamic downtown cities Austin needs more
retail. It needs more goods and services outside of the food and beverage
industry. Encourage the Austin City Council to keep Austinites downtown and
not just import tourists.

Downtown Austin, Retail ,

Mortgage Rates Likely to Rise if U.S. Credit Rating Downgraded

Posted on July 29, 2011 by devm0406 Leave a comment

The US credit rating already has been tarnished, according to some financial analysts, regardless of whether Washington reaches a compromise on raising the debt ceiling by the Aug. 2 deadline.

These analysts say America’s creditworthiness has been damaged even if Congress does raise the ceiling, thereby avoiding a default. No matter how the crisis is resolved, America’s AAA rating is likely to be cut.

Once this happens the US will pay more to borrow money. Mortgage lenders will incur higher costs and pass these through to the borrower ….you!

For example, a homeowner with a mortgage of $100,000 would see costs increase $100 to $200 a year, according to the New York Times.

If you have been thinking about buying a home you might want to get off the fence and do it now. Credit card rates will likely rise, too.

The trickle down will be slow but steady. Costs today will be more next year. Should you make such a serious move as buying as home in these uncertain economic times?

The answer is yes . America will pay more to borrow money. You will pay more to borrow money. And you can thank your congressman!

Buying Opportunity, Condos, Downtown Austin, First Time Home Buyer

Tips for First Time Homebuyers

Posted on July 22, 2011 by devm0406 1 Comment

Less than one-third of home purchases in June were made by first-time buyers, according to the National Association of REALTORS®. In the past, as much as one-half of all purchases were made by first-time buyers.

So, what’s the problem? Financing!

Financing for any buyer can be tough today. But first-time buyers may have a short credit history or be unable to put a big down payment into the purchase.

Home financing can be divided in to two categories: (1) single family homes and (2) condos. And condos are more attractive to first time buyers for several reasons:

(1) Lower purchase price
(2) Lifestyle
(3) Lack of maintenance.

Unfortunately, financing for condos is harder than single family houses. Why?

Condo price swing more widely in the real estate cycle than houses and, as such, are the bellwethers of the housing industry. Consequently lenders label condos as riskier because most of their bad loans are in condos.

Down payments in condos may range from 10-25% of the purchase unless you can find an FHA approved project and qualify for a 3.5% loan. Guidelines for condo loans are stricter – requiring 51% owner occupancy and no owner possessing more than 15% of the total.

Despite all the hurdles condos still make an excellent vehicle for a first home.

Here are my three tips to obtaining financing.

Condos, First Time Home Buyer, Single Family Homes ,

Debt Ceiling Deadline Looms: Markets Reel, Lenders Tighten

Posted on July 15, 2011 by devm0406 Leave a comment

The debt ceiling negotiations continue with President Obama and the Republican-controlled Congress at odds on the best course of action before the Aug. 2 deadline to raise the debt ceiling. The stalemate has even prompted foreign nations, such as China, to caution the U.S. to act prudently in addressing its indebtedness. Credit agencies, Moody’s and others, are threatening to downgrade U.S. credit unless action is taken to reduce the deficit soon.

On a local level what does this mean? Lending at local banks has declined since 2008, according to the Austin Business Journal. The downtrend reflects the national picture even though Central Texas banks didn’t go on the lending spree that many bigger banks did in the middle of the last decade.

As the big, national banks have clamped down on lending – so have small, local ones. For example, lenders are grudgingly approving – or disapproving – loans to self-employed buyers based on a continued rise in their income. Yet small businesses don’t always follow a straight path.

Net income sometimes drops because investments in plant, inventories, and employees can shrink the bottom line. These profit fluctuations can hurt borrowers because they don’t always fit into the rigid guidelines used by big lenders in their automated systems that approve or deny applications.

What we need to avoid a double-dip recession is a resumption of normal lending. Local banks lend directly to small business, resulting in increased employment and inventories in Austin. Decreased local lending doesn’t help stimulate the local economy.

Of all the current financial problems I hope that lenders and small banks will realize the importance of the entrepreneurs in the US, in Texas and in Austin. Small business is our greatest asset and therefore deserve individual attention. Loans are the lifeblood of small business: for expansion, for competitiveness and for quality of life.

Downtown Housing, Real Estate

Cool Austin Accolades

Posted on July 8, 2011 by devm0406 1 Comment

AUSTIN, EL PASO CRE MARKETS ON UPSWING

NEW YORK (Real Estate Forum) – American Law Media’s Real Estate Forum magazine published its list of ten “up and coming” commercial real estate markets, and Austin and El Paso were among them.

The magazine said “thousands of young professionals are flocking to Austin for new jobs and a popular music and arts scene.” Meanwhile, El Paso is “rising from the ashes and prospering thanks to new public policy and tax incentives.”

No other Texas cities made the list.

To find out what else the magazine had to say about Austin and El Paso (and to find out which other cities made the list), read “Up-and-Coming U.S. Markets.”

AUSTIN OFFICE MARKET STRENGTHENS

AUSTIN (Austin American-Statesman) – The Capital City’s office market continued to strengthen in second quarter 2011 with improvements in vacancy and rent rates, according to Oxford Commercial.

The vacancy rate for Class-A office space was 19.8 percent compared with 23.1 percent a year ago and 20.6 percent in first quarter 2011.

Rent rates continued to improve for Class-A space as well, increasing for the third consecutive quarter. It currently stands at $28.24 per sf. That’s up from $27.74 in the second quarter of last year and $27.73 in the first quarter of this year.

Oxford partner Ford Alexander said brokers are seeing growth across the board, including small and medium-sized gaming and software firms.

Both of these recent praises highlight Austin’s road to recovery. Meanwhile triple digits continue in Austin and central Texas, so stay cool. No matter which of these Austin icons you prefer during the heat wave have fun.

Barton Springs Hula Hut IMAX
Downtown Austin, Downtown Housing, Luxury Condos, Real Estate , , , ,

Four Seasons best pick of downtown Austin luxury condos

Posted on July 1, 2011 by devm0406 Leave a comment

Recent developments at the W luxury condos this week make it the least attractive of the high-end condos for sale in downtown Austin. Falling glass has closed the hotel part of the W building, prompted partial street closures and triggered a lawsuit against the condos. Sales in the W were lagging behind the other two new luxury condos before the falling glass incident.

Note most of the east facing balconies are missing their glass surrounds.

Another high-end condo downtown is The Austonian, one of the tallest and most recognizable buildings on the skyline. The Austonian has 188 residences, but about 2/3 of them reportedly are unsold.

Early residents may live with chronic construction as up to half of the 56 floors are unfinished and awaiting buyers. Construction workers will build out the units as they sell.

The Austonian

Of the 3 luxury condos, the Four Seasons is the most attractive right now. It is nearly half sold, with 75 closed units out of 166 projected. That percentage would put them ahead of both the W and Austonian.   Both lenders and owners will like the potential this highrise offers.

Four Seasons Residences

Four Seasons Residences

Condos, Downtown Austin, Luxury Condos ,