An aerial view of the Brazos Lofts property, looking roughly south from this perspective. Image: Bing Maps
Unit owners at downtown Austin’s Brazos Lofts condominiums reportedly signed off last year on a $55 million buyout of the building, and according to information shared with TOWERS by confidential industry sources, the closing and distribution of those funds is anticipated this week in preparation for the site’s eventual redevelopment by its soon-to-be new owners, local real estate firm Cielo Property Group.
A view of the Brazos Lofts building from the corner of East Fifth and San Jacinto Streets. Image: Dick Clark + Associates
This low-rise residential building is situated atop a half-block at 411 Brazos Street, entirely outside of any view corridors or other height restrictions — giving the property significant high-rise development potential in a fast-growing district of downtown. Along with the sale of the Villas on Town Lake and the Railyard condos, the Brazos Lofts transaction marks the third major buyout of an established downtown Austin condo community for potential redevelopment in the last few years.
A view of the Brazos Lofts building’s tallest corner, at East Fifth and San Jacinto Streets.
The Brazos Lofts building is two stories tall along most of its East Fifth Street frontage with retail and commercial space on the ground level, and rises to three floors at the corner of East Fifth and San Jacinto Streets to contain a total of 39 condo units.
Dating back to 1925, the structure is one of downtown’s few truly authentic commercial-to-residential loft conversions, originally home to workshops and the showroom of local automobile dealership Capitol Chevrolet — its conversion to condos arrived in 1999, courtesy of Austin development firm the Sutton Company.
A view of the Capitol Chevrolet building that would later become Brazos Lofts. Image: Austin History Center (via DowntownAustinBlog.org)
Sutton would later return to the project by competing with Cielo to purchase the property — both companies submitted offers approximately one year ago, with Cielo’s final bid of $55 million eventually winning out. This sale joins last year’s notable $104 million purchase of the nearby and similarly low-rise Railyard condominiums by Los Angeles development firm Karlin Real Estate, a buyout that could potentially enable an estimated 1.7 million square feet of high-rise development for its 1.6-acre site.
Our sources also shared that the terms of the Brazos Lofts transaction allow owners to stay rent-free at the community for 12 months, and when they vacate, they’re invited to take any of the unit’s appliances and fixtures with them, which isn’t a bad deal if you happen to like your microwave. If three major buyouts of lower-density downtown condo buildings represents a trend, we can’t help but wonder where the fourth will arrive — for what it’s worth, our money’s on Avenue Lofts.
UPDATE: Less than 24 hours later, we’ve received a press release from Cielo Property Group confirming the Brazos Lofts buyout. The sales price isn’t disclosed here, but our sources indicate the final bid was $55 million:
AUSTIN, TEXAS (January 15, 2020) — Austin-based Cielo Property Group has purchased the property at the southeast corner of Brazos Street and Fifth Street in downtown Austin.
Cielo could eventually build up to 885,200 square feet on the .81-acre site at 411 Brazos St. but has no specific development plans for the property at this time.
“We’re focused on curating the most thoughtful and creative project to maximize the positive impact on this area of downtown,” said Cielo Co-Founder Bobby Dillard.
Cielo purchased the property from the owners of the Brazos Lofts condominiums. The current owners and retail tenants can remain for up to a year under the terms of the sale.
The sales price was not disclosed.
“We are excited to transform this site with a project that will make a positive contribution to the future downtown Austin,” said Cielo Co-Founder Rob Gandy. “This is a prime location that can accommodate far more people and activity as downtown continues to grow.”
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