Two new large-scale developments are set to reshape Austin, with city approvals moving forward for high-rise towers near the University of Texas and a mixed-use project in the St. Elmo Arts District.
Plans submitted to the city indicate that a full block along West Martin Luther King Jr. Boulevard and West 18th Street could see two towers constructed—one at 37 stories and another at 34 stories. According to city filings, one tower would contain a 287-room hotel and 61 condominiums, while the other would have 318 apartments. Both buildings would feature about 11,400 square feet of retail space on the ground floor.
The area currently consists of low-rise businesses including Jack Brown Cleaners, Tiff’s Treats’ original location, Jimmy John’s, and small apartment buildings. The Austin Planning Commission voted on January 27 to advance zoning changes needed for the project.
While the developer has not been named publicly, the applicant is seeking greater height allowances through Austin’s Downtown Density Bonus Program, which will require approval from City Council. The nearly two-acre site is divided into two parcels separated by an alley; each parcel will host one tower. Landowners include 1806 Group LP, Jack Brown Family II Limited Partnership, Triple Play Properties LTD, and Scott Sayers.
In South Austin’s St. Elmo Arts District at 4201 South Congress Avenue, a different type of development is moving ahead after receiving a site development permit from the city on January 23. This permit allows construction through January 2029.
The project—named 4201 S Congress—will offer approximately 200,000 square feet of retail, restaurant, and office space across eight mid-rise buildings located at South Congress Avenue and Industrial Boulevard. Ownership belongs to 4201 S Congress Ave Owner LLC, which shares an address with Redcar Properties based in California—a developer already active in St. Elmo Arts District.
Project plans include several building sizes and uses: restaurant and office spaces ranging from about 10,500 square feet up to nearly 68,000 square feet; multiple standalone office structures; and a six-story parking garage with ground-floor restaurant space that can accommodate up to 494 vehicles.
Despite Austin’s office vacancy rate being around 26 percent at the end of last year according to CBRE data (https://www.cbre.com/insights/figures/austin-office-figures-q4-2023), new construction has slowed considerably while leasing activity has started to increase slightly. By the time this South Congress project is finished in several years’ time, current oversupply conditions may have changed.
Eric Weilbacher contributed reporting for this story.
