Hotel/condo project ready to rise in downtown Austin

Financing is now in place that paves the way for a 33-story hotel and condominium project to break ground in downtown Austin, its developers say.

The Kor Group said it has brought on the Merchant Banking Division of Goldman, Sachs & Co. as a capital partner for Austin Proper Hotel & Residences, which will be part of the transformation taking shape on land that formerly housed the Thomas C. Green Water Treatment Plant.

Austin Proper is expected to break ground in the next few weeks, said Matt Green, Austin managing partner for The Kor Group. Located at West Second and Nueces streets, the 500,000-square-foot Austin Proper development will have 99 luxury condominiums atop a 244-room hotel. The hotel is expected to open in 2018 and will be managed and branded by Proper Hospitality.

The Kor Group is not disclosing the cost of the project.

Brian De Lowe, president and co-founder of Proper Hospitality and a partner at The Kor Group, said Goldman Sachs is the “ideal capital partner to help us realize our vision of positioning this project as the ultimate luxury lifestyle hotel and residential offering in the Austin market.”

Green said buyers have signed contracts for 40 percent of the condo units. The condos currently are priced from $600,000 to $3 million, and the penthouses start at $3.4 million. Austin-based DEN Property Group is marketing the residences.

Austin Proper will include multiple dining concepts by McGuire Moorman Hospitality, which holds claim to some of Austin’s most popular restaurants — including Lamberts Downtown Barbecue, Perla’s Seafood & Oyster Bar and Jeffrey’s — and which just opened June’s on South Congress Avenue.

Austin Proper is part of the ongoing transformation of the former Green Water site into 1.7 million square feet of new development. The city chose Trammell Crow to redevelop the site, which is part of a larger swath of former city-owned industrial land that is being added to the tax base and helping to reinvigorate that area of downtown with new housing, offices, shops and restaurants.

Other components of Trammell Crow’s project are Northshore, a 38-story apartment tower Crow is developing with The Hanover Co. and Pacific Life Insurance Company, and an office tower under construction where Google Inc. will be the lead tenant.

In January 2015, The Kor Group purchased the half-acre site where it will build Austin Proper from Trammell Crow Company, which had paid the city $4.3 million for the land.The Kor Group did not disclose what it paid for the land.

So far, Trammell Crow has bought three of the 4.5 acres on the Green Water site from the city in phases, paying $32.1 million of the $42.4 million total cost for all four blocks.

City officials have estimated that over the next three decades Green’s redevelopment will generate $112 million in property taxes and $9.6 million in sales taxes for the city.

Reader Comments ...

Next Up in Business

Top Local Business Stories of the Week
Top Local Business Stories of the Week

TEXAS SPACEPORT Progress slow at SpaceX’s planned South Texas spaceport: More than three years ago, SpaceX founder Elon Musk gathered with state leaders at this remote South Texas beach to trumpet it as the future location of the world’s first commercial spaceport. But so far, the only liftoffs from the shifting dunes are being achieved...
Average Austin shopper to spend about $465 this holiday season
Average Austin shopper to spend about $465 this holiday season

In an ever-changing retail landscape, stores big and small have tweaked their Black Friday plans this year to maximize sales. For many, the days of throwing the doors open on Thanksgiving and welcoming shoppers for 24, 36 or even 48 hours straight are history. Instead, a growing number of shopping centers and big-box chains decided this year to give...
Why I’m skipping wireless charging on my iPhone 8 Plus

I’ve had the iPhone 8 Plus for about a month now, and while on launch day I thought I’d be most excited about wireless charging, I’ve found I’ve abandoned my wireless charger in favor of fast charging. I’ve come to like wireless charging when I’ve used Samsung’s phones, as it’s quite speedy, but Apple...
This app could reduce the dangers of concussions in young athletes
This app could reduce the dangers of concussions in young athletes

Startup of the week: Who they are: PRIVIT What they do: Their app seeks to keep young athletes safer by helping coaches and trainers report and properly treat concussions and other injuries and medical conditions. Why it’s cool: There’s been plenty of buzz recently about the dangers of concussions in impact sports — including the...
The future is here: Augmented reality apps to use on iPhone or iPad

With the release of an updated mobile operating system in October, Apple’s new augmented reality platform is ready for take-off. The first generation of AR apps is available in Apple’s App Store, allowing millions of iPhone and iPad users to view three-dimensional computer-generated graphics on top of a user’s real-world view. With...
More Stories