• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

TOWERS

Austin city life since 2007.

  • News
    • Condo Projects
    • Neighborhoods
  • Listings
    • Austin Condo Guide
  • Newsletter
Search
You are here: Home / Development Watch / Financing in Hand, W Austin Hotel & Condos to Begin Construction on Monday
Search suggestions: condos for sale • rainey street

Financing in Hand, W Austin Hotel & Condos to Begin Construction on Monday

towers staff May 4, 2008 Comment

Stratus Properties announced that it closed financing for the massive $295 million Block 21 hotel-retail-condo project behind City Hall on Friday. Not wasting anytime, they plan to begin construction on the 36-story project on Monday.

No project has been subject to more speculation than the W Hotel & Residences. Over the last few months, rumors have swarmed that the project might not materialize. Despite strong pre-sales, it seemed that the large project might not be able to raise the financing required to break ground.

However, the developers have pulled it off. With groundbreaking in site, the Block 21 project will likely become the heart of downtown. Located on 2nd street directly behind City Hall, Block 21 fills an important street-front retail gap between the two AMLI projects. As Seaholm and the redeveloped Green Water Plant grow to become a vibrant corridor between Congress and Lamar just North of Ladybird Lake, the 2nd street district and Block 21 will be in the center of the action.

Promotional hand out rendering of the planned W hotel slated for Block 21.Credit: Andersson-Wise Architects. Received 05/02/08 for 0503Block21.

Promotional hand out rendering of the planned W hotel slated for Block 21.Credit: Andersson-Wise Architects. Received 05/02/08 for 0503Block21.

Once the W Hotel is completed in 2010 and the Condos completed in 2011, the project will also contain the 2,480-capacity venue for “Austin City Limits” as well as other restaurants, bars, and retail.

Owners of W Austin Residences will have full use of all the hotel’s facilities as well as access to 24-hour room service, daily housekeeping service and concierge services, and a spa in the building. Whatever, Whenever service provides the closets thing to a personal butler: call them to shop for groceries, take a dog for a walk, fix a flat tire, of pick-up take out on your behalf.

With today’s announcement, additional project details were revealed:

– The project will include 165 units, down from the originally planned 196 units. The change is reported to be the result of the combination of some units into larger condos.

– Just more than half, 85 of the 165 units, are under contract with nonrefundable 10% deposits.

– The average price of sold units is an amazingly high $1.1 million with prices ranging from the high $400,000s to more than $3 million.

– The project will have a significant economic impact, creating more than 1,000 jobs during construction and hundreds of new jobs when the project opens. The project is expected to provide the City with approximately $35 million in incremental taxes once it opens.

– It will take 30 months to build the hotel, for an expected fall 2010 completion, and 36 months for the last condominium to be finished, by about May 2011.

Here is a summary from the Statesman:

With financing in place, construction is finally ready to begin Monday on a high-profile downtown development with a 36-story W hotel, condominiums and a new “Austin City Limits” venue.Joint-venture partner Stratus Properties Inc. closed Friday on financing for its Block 21 project, which will cost $295 million, up from an earlier estimate of $260 million.The higher costs are related to 70,000 square feet being added to the original project and a “modest increase” in building costs, Stratus chairman and CEO Beau Armstrong said.The financing paves the way for crews to arrive Monday to start excavation work for three levels of underground parking, Armstrong said. The entire project is expected to be completed in three years. . .But Armstrong said the “sheer magnitude of the project” and a highly challenging lending market altered the timetable. The city had the right to repurchase the property if Stratus didn’t start construction by April 15 but gave Stratus an extension, he said.”It’s a tough time to borrow money now, no matter who you are,” Armstrong said. And though, typically, construction loans aren’t the hardest part of a deal to land, “because of the turmoil in the credit markets, it became a more difficult proposition,” he said.Armstrong said that it also took time to get the necessary building and other permits from the city but that those are now in hand.

Related

Filed Under: Development Watch

About towers staff

Real estate, architecture, and city planning. Email: austin@towers.net

109 E 10th Street
Austin, TX
Photo of 109 E 10th Street, Austin, TX 78701 (MLS # 6369878)
$3,200,000
24
  • Lot Size
    2,614 sqft

  • Home Size
    4,916 sqft

  • Beds
    7 Beds

  • Baths
    4 Baths

Previous Post: « With Strong Sales, BartonPlace Construction Begins
Next Post: The Next Big Downtown Change: 5 Proposals for Green Water Treatment Site Revealed »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  •  Schedule a showing

Featured Buildings

  • 360 Condos
  • The Independent
  • 70 Rainey
  • Milago Condos
  • Seaholm Condos
  • The Shore
  • W Hotel & Residences

FEATURED Listings

54 Rainey Street #1118
Austin, TX
Photo of 54  Rainey Street #1118, Austin, TX 78701 (MLS # 2023262)
$995,000
37
  • Lot Size
    436 sqft

  • Home Size
    1,956 sqft

  • Beds
    2 Beds

  • Baths
    3 Baths

210 Lavaca Street #3110
Austin, TX
Photo of 210  Lavaca Street #3110, Austin, TX 78701 (MLS # 4018098)
$1,075,000
40
  • Lot Size

  • Home Size
    1,423 sqft

  • Beds
    2 Beds

  • Baths
    3 Baths

800 W 5th Street #808
Austin, TX
Photo of 800 W 5th Street #808, Austin, TX 78701 (MLS # 4895650)
$1,699,900
40
  • Lot Size
    436 sqft

  • Home Size
    2,422 sqft

  • Beds
    2 Beds

  • Baths
    2 Baths

View Virtual Tour
109 E 10th Street
Austin, TX
Photo of 109 E 10th Street, Austin, TX 78701 (MLS # 6369878)
$3,200,000
24
  • Lot Size
    2,614 sqft

  • Home Size
    4,916 sqft

  • Beds
    7 Beds

  • Baths
    4 Baths

Footer

LEGAL NOTICE

TREC Information About Brokerage Services (pdf)

Texas Real Estate Commission Consumer Protection Notice


TOWERS realty

Browse Condo Listings

Agents

Downtown Buildings

Luxury Towers

  • Four Seasons Residences
  • W Hotel & Residences
  • The Austonian
  • 5 Fifty Five at Hilton

Most Popular

  • The Shore
  • 360 Condos
  • Seaholm Condos
  • Spring Condos
  • Milago Condos

New Construction

  • The Independent
  • 70 Rainey
  • Austin Proper
  • Fifth & West

Loft Style

  • Austin City Lofts
  • Brazos Place
  • The Sabine
  • Plaza Lofts
  • Avenue Lofts
  • Brazos Lofts
  • Brown Building

Resources

  • Austin Condo Guide
  • Condos For Sale
  • Condo Buyer FAQ
  • Property Search

Featured

Archives

Austin city life since 2007 · Newsletter · About · Contact Us · DMCA · Privacy Policy · SLAPP · Copyright © 2007-2021 TOWERS.net · All Rights Reserved