Downtown Austin Blog

Urbanspace Realtors is recruiting top performers with a passion for new-urbanism

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Tue, 24 Mar 2009 16:14:20 -0500

Consider visiting with me to discuss transitioning your business to Urbanspace. I understand this is a very personal decision and each brokerage firm has its respective strengths. Urbanspace's strength is the caliber of our team, brand identity, and clear focus on properties within the urban core.

To the extent you are interested learning more, feel free to send me an email telling me about yourself, and we can set a time to grab coffee and begin to see if there might be a good fit.

Thanks,

Jude Galligan
urbanspace realtors, llp
jude@urbanspacerealtors.com
512-226-3414

Has anyone ever had issues with TXDOT on getting a driveway permit?

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Fri, 06 Mar 2009 15:16:17 -0600

Right now, I am of the belief that the TXDOT wheels have been greased by my neighbor.

Austin City Council and Mayoral race: website roundup

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Sat, 31 Jan 2009 08:23:58 -0600

Sheryl Cole - Place 6 incumbent

Chris Riley - Place 1 candidate

These days its pretty much unacceptable to not have a website if you are running a campaign. You should be able to do a Google search for “candidate’s name + city council” and your campaign page should be #1 or #2 on the search results page. Some of you candidates have work to do!

Mayor:

Brewster McCracken - http://www.brewstermccracken.com
Lee Leffingwell - http://www.austinleadership.com
Carol Strayhorn - http://www.caroleforaustin.com

City Council:

Chris Riley (place 1) - http://www.chrisforaustin.com
Mike Martinez (place 2) - http://www.martinezforaustin.com
Perla Cavazos (place 1) - http://www.voteperla.com
Rick Cofer (place 1) - http://www.rickcofer.com
Bill Spellman (place 5) - http://www.utexas.edu/lbj/faculty/william-spelman/
Sheryl Cole (place 6) - http://keepsherylcole.com

Candidate’s in green are those which I am currently supporting. I think the best coverage of city hall comes from the BurntOrangeReport.com and Wells Dunbar’s (Austin Chronicle) City Hall Hustle. If you find bias, it should be easy to filter.

Okay, everyone with local political aspirations, you should right now purchase FirstnameForAustin.com!

Originally posted at Downtown Austin Blog

21c Museum Hotel Residences… a new opportunity?

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Wed, 31 Dec 2008 15:45:18 -0600

Now that the AMOA museum tower and the bazillion room Marriott are on indefinite hold, an unexpected opportunity has opened up for Downtown Austin’s proposed 21c museum/hotel/residences to consider pushing forward. 21c is making the mass-media rounds as of late. Last week 21c was featured on NPR. This morning 21c was featured on the Today show.

21c’s Cesar Chavez & Red River location is prime for participation (financial and design) in the Waller Creek Revitalization.

originally posted by Jude Galligan at Downtown Austin Blog

21c museum, hotel, and residences gets glowing review by NPR

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Tue, 23 Dec 2008 14:36:44 -0600

by jude galligan

21c museum residences

Austin’s 21c museum residences and hotel may be on hold for now, but this morning NPR gave a glowing review of the original concept in Louisville, Kentucky. The NPR story incorrectly states that the Austin 21c is under construction; however, Marriott’s decision to not build 1,000 hotel rooms should reflect favorably on 21c’s pro-formas. 21c was originally planned for development at the Whitely paper building on 3rd and San Jacinto, however, plans changed to locate the building(s) at Red River and Cesar Chavez along Waller Creek.

link to article
link to NPR audio

Required reading over the holidays

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Wed, 17 Dec 2008 10:14:08 -0600

How Buildings Learn by Stewart Brand

Last year I purged my book shelves by giving away hundreds of books I’ve collected over the years. I kept a dozen, or so, that were too significant to give up. Since it’s been a slow news week for Downtown Austin, I thought I would use this time to recommend a couple of books that you can read over the holidays. Below are two of my favorite books about land use that I hope you will pick up.

“How Buildings Learn” by Stewart Brand
This book is interesting to me, not only because it has lots of pictures of old architecture, rather because Stewart Brand attempts to follow how the greatest buildings change use over the course time.

“The Death and Life of Great American Cities” by Jane Jacobs
Long considered the urban planner’s bible, this book should be required reading for our elected officials (City Council and staff, County Commissioners, CAMPO board)

Extra credit
I encourage you to check out another book by Stewart Brand “The Clock of The Long Now“. This book is about many things including how civilizations evolve, how the digital age changes the way we archive and access our collective knowledge, and more. Throughout the book is a story about the design of a 10,000 clock that will be installed in the side of a mountain. Great read.

Design team chosen for Downtown Austin's new Central Library

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Fri, 12 Dec 2008 08:07:54 -0600

Site of Downtown Austin's new Central Libary

Lake Flato has been awarded the design contract for Downtown Austin’s new Central Library. They’ve got $90MM to work with to build 250,000 square feet by 2013.

Below is an estimated timeline for the new Central Library project:

May 2009 ~ Citizen/Stakeholder input meetings –Co-sponsored by Library Commission and Library Foundation June 2009 ~ Design phase begins
Spring 2011 ~ Design development completed
Winter 2011 ~ Construction begins
Fall 2013 ~ Construction complete
Spring/Summer 2014-Grand Opening

The site sits partially within a capitol view corridor, so the future building can only be mid-rise and will likely only by three stories. In that regard I like this choice of location. Still, I think this is a poor choice of location in terms of accessibility. I’ve seen plenty of proposed transit maps for ‘future’ Austin, and not a single one shows rail stopping near the library. Doh!

Jude Galligan, Downtown Austin Realtor

Design team chosen for Downtown Austin's new Central Library

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Fri, 12 Dec 2008 08:06:08 -0600

Site of Downtown Austin's new Central Libary

Lake Flato has been awarded the design contract for Downtown Austin’s new Central Library. They’ve got $90MM to work with to build 250,000 square feet by 2013.

Below is an estimated timeline for the new Central Library project:

May 2009 ~ Citizen/Stakeholder input meetings –Co-sponsored by Library Commission and Library Foundation June 2009 ~ Design phase begins
Spring 2011 ~ Design development completed
Winter 2011 ~ Construction begins
Fall 2013 ~ Construction complete
Spring/Summer 2014-Grand Opening

Jude Galligan, Downtown Austin Realtor

Downtown Austin - pics of Austin's commuter rail at downtown station

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Wed, 10 Dec 2008 09:13:44 -0600

This past Sunday I caught an impromptu glance at the Commuter Rail Train parked at the downtown station. Up close, the trains are beautiful. Compared to a subway trains, or if you’ve ever seen the NJ-transit trains, Austin’s commuter rail looks like a Mercedes. When I arrived, there were about 25 CapMetro workers milling about. I tried to discretely walk into the train but was cut off by an official looking guy. Still i managed to grab some pics where you can see the interior. Looks pretty cool!

One thing I am disappointed with is the gazebos. They’re small, don’t protect from the elements, and are fire-engine red. We spend millions of dollars on a train and get these crummy gazebos. The service won’t officially start until March, but it’s good to see this thing moving. From my window, I can see it going by and it is very quiet.

originally posted at Downtown Austin Blog by Downtown Austin Realtor, Jude Galligan

City of Austin v. Harry Whittington: the saga of a parking garage

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Thu, 04 Dec 2008 08:42:51 -0600

Part 1 of the chronology of City of Austin v. Harry Whittington

17k square feet of retail at 5th & Sabine held hostage by legal battles

17,000 square feet of empty retail space rests at the base of the Convention Center’s parking garage. This retail space has the potential to add vibrancy and day time services to the Entertainment District. This is the only retail space within a few hundred feet of the 555, the Sabine on 5th, the Hilton, the Hilton Garden Inn, and the Convention Center. So, why hasn’t this space been filled?

1981: Harry Whittington (yes, that Harry Whittington) purchased a full city block - block number 38 in Downtown Austin. The lot is bounded by Red River, 5th St, Sabine, and 4th St.

The lot is described as having four lots on the north side of the lot, and four lots on the south side of the lot. A twenty-foot alley separates the two sides. For years the City of Austin would lease this lot

1998: City issues $110MM in bond funds for the purpose of expanding the Convention Center. The City is also seeking a private developer to construct a new hotel (that would be the City’s largest) and parking garage that would be shared by the center and the hotel.

1999: The cost of underground parking is estimated to be $30,000 per space and the hotel developer retreats from the 700 space commitment. The City has been leasing the parking lot next door, owned by Harry Whittington. Whittington’s block could not only serve the Convention Center, but the 6th Street Entertainment District. Harry is not interested in selling.

Whittington has said “Our family has been planning a mixed-use development that would add to the dynamics of downtown [Austin] and be more aesthetic than a public parking parking garage.”

2000: The City begins condemnation process after not being able to reach a deal with Whittington. Commissioners approve of the City’s condemnation of Whittington’s land and vote that the City should pay Whittington $3.6MM.

2001: Eminent domain cases are very delicate “by the book” cases. The process server neglected to serve Harry’s wife and daughter who are also owners of the land. Whittington sues the City and wins. The condemnation is thrown out and the City pays Whittington $150k in legal fees.

While continuing to pay Whittington $21,000 per month to leases the parking lot, the City votes to file suit to condemn the property – again. Councilmember Will Wynn is the only councilmember to vote against the condemnation believing a parking garage is not the highest and best use, and that more property and sales taxes could be collected if the land were put to different use. The value of Whittington’s land has already increased since they began construction of the hotel.

The City has now increased its budget to purchase the land from $3.5 to $5.1MM. Whittington is not interested. In December, of 2001 the City tries – again – to condemn the land. Whittington angles is the City condemning for a clear public purpose (Convention Center parking), or to enter the parking business?

2002: Commissioners once again approve of the condemnation and award Whittington $7.65MM. The City had only planned to spend $5.1MM. Austin Energy ponies up $2.5MM and will install a new chiller system atop the proposed parking garage the City just condemned.

Whittington sues the City, claiming intended use of the land is not strictly for “public purpose,” and therefore the condemnation should be thrown out. The City never expected a fight like this.

“They’re [the City] also saying the new garage will fill a dire need by relieving parking congestion in that fast-growing neighborhood, as well as house a much-needed energy-saving cooling plant that will be hooked up to the convention center and its headquarters hotel next door” – Jonathan Osborne, Statesman Staff Writer

It would later come out that the Austin Energy’s existing chilller at 3rd and Nueces is already connected the Convention Center and the new hotel being constructed.

This is the crux of Whittington’s case – the city may not condemn a piece of land for private benefit. “I think they just want to be in the parking business” said Whittington.

Meanwhile, stakeholders are vocalizing their concern that the City’s efforts are misguided and could do more harm than good. Just around the corner, the City has access to 400 parking spaces that are underutilized. The Convention Center claims they don’t need more than 400 spaces. So why is the City compelled to construct more, at the opportunity cost of a mixed-use development?

One reason, according to Convention Center Director, Bob Hodge, is that the City would then give up on the revenue from those spaces and that convention parking is sporadic. Also, the new hotel dropped its commitment of 700 spaces to 400 spaces. Those extra spaces were intended for convention use.

Whittington’s suit was dismissed by County Court-at-law Judge Orlinda Naranjo when she claimed the parking garage would indeed be serving a public purpose. Whittington is already preparing an appeal. This time based on evidence that the City did not properly condemn an alley running through the middle of the lot and that he still owns the alley.

Stay tuned for the rest of the story!

-Jude Galligan

orignially posted at Downtown Austin Blog

Downtown Austin is getting fancy

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Tue, 02 Dec 2008 08:11:42 -0600

While West 6th became restaurant row, the building located at 609 w 6th, 78701 has been siting idle for the past few years. Recently activity has been buzzing.

wine and beer only

We’ve seen a construction crew slowly converting this old building into something new. I’ve heard that the building is owned by Sandra Bullock. This would make sense considering her successful Bess restaurant is just down the street. Traviscad lists the property is owned by “PIETANZO VITO TRUSTEE OF THE B” and has it appraised at $624,082. What’s more interesting to me is what will be opening.

It appears that Downtown Austin is getting a new Walton’s Fancy & Staple. According to their website…

“Walton’s downtown will include a traditional delicatessen & bakery (for folks on the go), & sidewalk café seating. Our Grand Opening is scheduled for late 2008. We look forward to fulfilling your fanciest floral, gift-giving & event design wishes!”

Walton's Fancy & Staple

According to Google this is the former home of Crime & Space books, KSA Communications, and Texas Terminator pest control.

609 w 6th

by Jude Galligan

Historic Downtown Austin property for sale

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Mon, 01 Dec 2008 09:09:47 -0600

107 W 6th St Austin, TX 78701

To the chagrin of everyone who lives, works, and drives through Downtown Austin, the former office of the Texas Comptroller has owned, occupied, vacated, and allowed to rot, this remarkable piece of real estate. I can’t imagine how many thousands of people have attempted to peer through the windows that were covered from the inside with thick construction paper. The building always had a cool, mid-century modern, style. Located at the corner of 6th and Colorado, and not burdened with a Capitol View Corridor, this building is sure to get the attention of some big developers. The listing gives it an address of 107 w 6th, 78701. Traviscad has no address for it other than “W 6th”

H E B at corner of 6th and Colorado

Buttrey's retail

I’ve heard developers say that the mid-century architecture would be the perfect specimen for an adaptive-reuse hotel. I think they’re right. Traviscad has the building appraised at $7.3MM.

From the listing (pdf):

“The Starr Building is being offered on an unpriced basis. Offers will be reviewed beginning December 1, 2008. At closting, Buyer will pay a statutory sales fee equal to 1.5% of the Purchase Price, as required by Texas Natural Resource code, Section 32.110. - CBD redevelopment opportunity: CBD zoning allows for hotel, retail, office, residential, or mixed use development. Lies outside of the Capitol View Corridor providing greater development flexibility with unrestricted height - Four level parking garage has generated over $99,000 in revenue YTD - Vacant building with numerous use options including remodeling to accomodate office tenancy or demolishing to construct a new multi-story building - Incredible views of the city and Texas Hill Country - Solid wood paneling and bookend matched marble interiors - One of a kind mural painted by renowned artist Seymour Fogel in 1954 - Unique modern design”

by Jude Galligan

Downtown Austin Condos: Build or bust? Fact or editorial disguised as fact?

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Fri, 28 Nov 2008 08:33:45 -0600

"At last?"

The Austin American Statesman is one of two local papers (the other being the Chronicle) that reach Austin’s masses. These newspapers set the agenda and guide the discussion on topics of their choosing. The words printed on the pages of the Statesman, Austin’s most widely read newspaper, have the power to affect the home values and lives of thousands of Austinites. With that power comes responsibility.

Wednesday morning I picked up a Statesman at Jos Coffee and in big bold black letters “Condos caught by crisis at last”, “Breakneck rate on sales of units, construction slows as credit and capital dry up”.

Curiously, neither of those dramatic headlines exist in the online version of the article. In the print edition, immediately to the left, in much smaller font, was the news - the government is injecting $800MM to expand the credit markets.

Shonda Novak is a staff writer at the Statesman and wrote the above article. Shonda has been reporting on Austin real estate for years. If Shonda writes that the sky is falling on Austin real estate, then 100k+ Austin readers look at their spouse and say “Hon, did you see that article in today’s paper about Downtown condos? I’m telling you, Babe, those developers will never sell all those condos! Just wait and they’ll be selling them at twenty cents on the dollar!”

I read and re-read the article. Seeing the print edition headline, I expected catastrophe. Instead, I found nothing at all particularly newsworthy.

Is it possible that the Statesman’s headline was overly sensational?

Taking a similar approach to how I dissected this article, after the jump, I’ve cut/pasted a handful of quotes from the article, and then I explain if that quote is, generally speaking, true, false, or if the quotes are generalizations or simply editorial in nature.

Let’s begin.

“Sales at the four towers under construction — the Austonian, the Four Seasons Residences, Spring and W — have slowed to a crawl since the financial crisis exploded in August…” writer, Shonda Novak

Editorial. These words are more true than false. Still, nowhere in the article is “crawl” substantiated with any numbers.

“The slowdown is the first break in a wave of residential development that has brought hundreds of new condominiums and apartments and several thousand new residents downtown in the past several years.” writer, Shonda Novak

Editorial, misleading. As it is written, the reader is expected to believe that this article is breaking news of “the first break in a wave of residential development”. In fact, reporting on the construction of the W Hotel on May 3rd, 2008, Shonda quoted Stratus CEO Beau Armstrong that “It’s a tough time to borrow money now, no matter who you are.” On October 24th, the Statesman published an article discussing Downtown Austin apartment vacancy rates. Real estate buyers have been bombarded with negative media for a long time.

“In recent years, announcements of bold new projects seemed to come every month.” writer, Shonda Novak

Generalization. While there were many announcements for new developments in 2006 and 2007, Shonda is editorializing to make her point that the market is slowing.

“…with the credit crunch, no new project has been announced this year.” writer, Shonda Novak

True. I did not find any articles in 2008 announcing a new project.

“Nationally, tightened credit requirements have made it harder for many people to get mortgages, including the so-called jumbo loans needed to buy the higher-priced units in projects such as the 56-story Austonian luxury condominium being built on Congress Avenue and Second Street or the 32-story Four Seasons Residences, going up adjacent to the hotel.” writer, Shonda Novak

True, misleading. The Austonian and Four Seasons are great projects, but to single out those buildings to paint a picture of Downtown Austin condos as a group is reckless. The current average price for a Downtown Austin condo is ~$382,000 (pdf), well under the jumbo loan threshold of $417,000 (wiki).

“Even if buyers can obtain financing, there’s a hitch: ‘They’ve got to sell something on the back end to buy something new, and they can’t unload their current property’” lender, Devlin McNamara

Generalization. Where is the data to support this? It’s reported as a blanket statement. Perhaps this was taken out of context. Devlin is one of the most knowledgeable mortgage guys in Central Texas. It might be true of mortgage applicants who are denied because they have an existing mortgage obligation but, in my professional observation and as a blanket statement, most Downtown Austin buyers do not need to sell their house before they buy.

“Sales of pre-owned homes in Central Texas have fallen for 16 months in a row.” writer, Shonda Novak

False. I researched the Austin Board of Realtors MLS data for month-to-month changes in 1) average price, 2) median price, 3) average price per square foot (SP/SqFt), and 4) ratio of sale price to list price (SP/LP) for Austin and downtown Austin over the past 16 months. While generally trending down, none of these indicators have declined for 16 months in a row. The SP/LP ratio for Austin has the most decreases. This is an indicator that Austin has been a buyers market for the past 16 months. The data comes directly from the Austin Board of Realtors’ MLS system. I’ve posted the data here (pdf). (I can hear some of you saying “Jude, we get your point and you’re nitpicking.” )

“Skeptics have warned for months that the downtown condominium market was overbuilt, and they say sales and prices are poised for double-digit percentage drops in the coming months.” writer, Shonda Novak

Editorial, unsubstantiated. More editorial. While most people can see that sales are slowing, not a single quote in the article predicts “double-digit percentage drops.” Furthermore, I researched the Statesman archives and could not find a single quote, in any article written by Shonda over the past six months, that contained any quotes predicting “double-digit percentage drops” or anything similar.

“Some real estate experts and developers of the four projects disagree, noting that three of the projects won’t be completed until 2010 or 2011. By that time, the hope is that the economy will have rebounded.” writer, Shonda Novak

True. The Four Seasons, Austonian, W Hotel.

“the misconception of the casual observer is that downtown is or will be overbuilt,” … “The reality is that the various projects in and around downtown are being delivered at staggered schedules and price points.” Four Seasons developer, Brett Denton

True.

“Nearly half of the Four Seasons’ 166 units are under contract” Four Seasons developer, Brett Denton

True.

“There are binding contracts, with nonrefundable earnest money, for about 45 percent of the 159 condos that will be built as part of the 36-story W Austin Hotel and Residences north of City Hall” W Hotel developer, Beau Armstrong (as quoted by Shonda Novak)

True.

“More than half of the 246 units at Spring, under construction at West Third and Bowie streets, are under contract” Spring developer, Larry Warshaw (as quoted by Shonda Novak)

True.

“When Spring is finished next summer, ‘it will be the only building where someone can buy a high-end condo in a high-rise in downtown Austin for eight to 10 months — the only one’” Spring developer, Larry Warshaw

True.

“Last month, a ‘close-out’ unit in the 5 Fifty Five luxury condos atop the Hilton Austin sold for $700,000, $85,000 off its original list price. In August, a resale unit there sold for $795,000, $80,000 less than its original price, according to real estate data.” writer, Shonda Novak

True, misleading. These transactions are exceptions, not the rule, and do not reflect the average ratio of sale price to list price (SP/LP). October transaction data for Downtown Austin shows an average SP/LP of 93.71% (pdf). In other words, based on the data, in October you would expect to pay $300,000 for a condo that listed at $320,000.

“In May, a unit in the Austin City Lofts went for $530,000, $45,000 less than its asking price.” writer, Shonda Novak

True, misleading. The Statesman is reporting on a single transaction… that occurred in May… six months ago! Transaction data from this past May for downtown Austin indicate an average sale price to list price ration of 95.5% (pdf)

“We thought we got a good deal when we moved in,” Kennedy said. “If we were moving in today, we would get a better deal.” broker, Mike Kennedy

True. There is strong competition in the downtown Austin rental market. Tenants should expect to negotiate.

“… work has yet to start on the next tower, Ovation, planned for West Sixth and Nueces streets, and Novare is eyeing a 2010 or 2011 start for the tower planned for the post office site.” writer, Shonda Novak

True. If new construction has not broken ground or taken their first draw on their construction financing, then, in my professional opinion, that building is unlikely to get built. This is healthy for the market and puts upward pressure on prices of existing condos.

“The 34-story 7Rio project at Seventh and Rio Grande streets is on hold indefinitely.” writer, Shonda Novak

True. Good for now. See above.

“I’m not saying we’ll flood the market with contracts, but things will pick up again.” consultant, Charles Heimsath

Editorial. While I agree with Charles, it’s important to put this into perspective.

From August 1st-November 25th 2007 there were 45 transactions for Downtown Austin condos with an average sale price of 96.04% of the list price (SP/LP). During that same period in 2008 there were 40 transactions for Downtown Austin condos with an average sale price of 95.32% of of the list price. (pdf: 2007, 2008). These numbers reflect only transactions for pre-owned condos and do not include developer contracts.

I’m going to rant a bit: This is a throw away article attached to a big headline with a singular purpose to sell newspapers. To her credit, Shonda was relatively balanced in her presentation, but the drama of the headline doesn’t match the perspective of the article. I was reading the article and looking for catastrophe. I never found it. Why did the Statesman publish this article? Why did they use completely different headlines in the print and online edition? Which leads me to wonder who is responsible for the headlines? Shonda or someone else at the Statesman?

This is the formula to create news: 1) pick an industry, 2) add market crisis sensationalism, 3) give it local spin, and 4) attach a big headline above the fold.

Nothing occurred this past Tuesday to give the Statesman justifiable cause for printing, on Wednesday, the headline “Condos Caught By Crisis At Last.” The Statesman printed an article that is void of anything new, or newsworthy. The Statesman acted irresponsibly by attaching a sensationalized headline to a banal article.

I don’t want to paint too a rosy picture of Downtown Austin real estate. Sales have generally been slowing since January. Still, Downtown Austin is a great place to live. Be skeptical of what you read. Yes, it is a buyers market. Has been for a while.

Austin, the sky is not falling.

by Jude Galligan, your Downtown Austin neighbor and loyal Downtown Austin Realtor (plug!)

originally posted at Downtown Austin Blog

Downtown Austin By The Numbers: How many hotel rooms?

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Tue, 25 Nov 2008 12:48:47 -0600

Driskill Hotel Lobby

If you’ve ever had family visit on a weekend when there was a UT home game, then you’ve likely seen downtown Austin hotel rates jump to over $400 per night. Central Austin is notorious for having insufficient hotel space. I’ve taken a non-scientific, yet hopefully rigorous approach - I called every hotel in downtown Austin and simply asked “How many hotel rooms do you have?”

4,303 hotel rooms in downtown Austin

Below is how it breaks down:

InterContinental Stephen F Austin Hotel, 189 rooms
Sheraton Austin Hotel, 362 rooms
Omni Austin Hotel Downtown & Suites, 375 rooms
The Driskill Hotel, 189 rooms
Radisson Hotel & Suites Austin, 413 rooms
Four Seasons Hotel Austin, 291 rooms
La Quinta: Capitol, 150 rooms
Hilton Austin, 800 rooms
Doubletree, 188 rooms
Austin’s Inn at Pearl Street, 12 rooms
Courtyard, 270 rooms
Residence, 179 rooms
Hampton, 209 rooms
Hilton Garden, 254 rooms
Holiday Inn, 321 rooms
Extended Stay America, 101 rooms

(please send me an email if there are any I left out)

Sure, you might ask “why I didn’t you include the Hyatt, or Hotel San Jose, or Austin Hotel?”. This is a valid question because they are close substitutes for downtown Austin hotels. I didn’t because it’s a slippery slope. Where do I stop once I include a hotel that is on South Congress? So I decided to stay inside the lines and official boundaries of downtown Austin. What’s interesting about this study is that 4,303 hotel rooms is, in fact, more doors than we have downtown Austin condos and apartments combined!

originally posted at Downtown Austin Blog by Downtown Austin Realtor, Jude Galligan

Austin's Entertainment District Still Has Room For Improvement

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Sun, 23 Nov 2008 17:27:36 -0600

downtown austin entertainment district

On Friday and Saturday I participated in a tour of 6th street. This wasn’t a bar hop. This was to observe. I’ve joined the ‘Community’ group for the Responsible Hospitality Institute’s (RHI)- ‘Austin Hospitality Zone Assessment for Sixth Street’. This effort is the result of 6ixth Street Austin and the DAA teaming up to develop a revitalization plan for Sixth Street. Our first mission is to tour the entertainment district and simply observe.

The convention center is located east of Congress. Several residential high-rises are located east of Congress. Have you noticed that all of Downtown Austin’s big hotels are located east of Congress! Sixth Street is the anchor. What do you imagine is the experience of visitors to Austin when they visit Sixth Street?

Sixth Street should be Austin’s historical and cultural hub. Landmarked buildings should be required to meet minimum aesthetic standards. Instead, as it is today, Sixth Street is in disrepair and needs to be cleaned up. This is the movement to do just that. There is opportunity to provide a better mix of services and overall experience for hotels guests, the convention center, and all of the residential buildings east of Congress. I’m not alone in this opinion as hotel operators, Sixth Street proprietors, city council members, city staff, police, and many outspoken residents were in attendance at the initial RHI meeting on November 4th.

Still to come, my [not under the influence] observations of Sixth Street.

originally posted by Downtown Austin Realtor Jude Galligan at Downtown Austin Blog

Austin's Entertainment District Still Has Room For Improvement

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Sun, 23 Nov 2008 17:27:07 -0600

downtown austin entertainment district

Still to come, my [not under the influence] observations of Sixth Street.

originally posted by Downtown Austin Realtor Jude Galligan at Downtown Austin Blog

Austin's Entertainment District Still Has Room For Improvement

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Sun, 23 Nov 2008 17:26:54 -0600

downtown austin entertainment district

Still to come, my [not under the influence] observations of Sixth Street.

originally posted by Downtown Austin Realtor Jude Galligan at Downtown Austin Blog

Downtown Austin Seaholm Powerplant redevelopment takes big step forward

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Fri, 21 Nov 2008 16:10:46 -0600

The redevelopment of the Seaholm powerplant has just taken a big step forward. The City approved the tax increment financing zone to pay for new public utilities within the 7.8 acre site sandwiched between Cesar Chavez and 3rd Street.

TIFs work by applying the increase in ad valorem tax revenue within a defined zone to repay the debt used to build the public infrastructure.

Seaholm.info
ABJ article

by Downtown Austin Realtor Jude Galligan, originally posted at Downtown Austin

Progress Coffee keeps it real - Thursday Nov. 20th

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Wed, 19 Nov 2008 21:03:20 -0600

Joshua Bingaman is an entrepreneur who really, truly, understands how to create a culture around his business. Click above image for more details. Quoting directly…

“So on Thursday, November 20th, everything we brew, bake, heat or fix at Progress will be FREE. Gratis. Complimentary (with our compliments, of course).
…
“In return, all I ask is that you consider contributing whatever you can to Bread for the World and/or Capital Area Food Bank. Any amount (or no amount) is fine, whatever you’re comfortable with a penny, a buck, a hundred bucks- cash, credit, check or change Progress will take it and donate it all. And if you can’t or just don’t want to contribute, no worries—it’s certainly not a requirement (and nobody will look at you funny).”

[Progress Coffee]

by Downtown Austin Realtor Jude Galligan, originally posted at Downtown Austin

Build or Bust? Fact or Fiction? Downtown Austin Condos

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Wed, 19 Nov 2008 14:33:18 -0600

You might have seen this article recently. It’s an interesting read. Filled with quotes and bold statements. You might have also seen my recent article about the actual number of dwellings in Downtown Austin. As your loyal Downtown Austin Realtor (plug!), I thought I would dissect this article and give you the scoop from the trenches of Downtown Austin Real Estate.

Downtown Austin is growing

I’m going cut/paste a handful of quotes from the article, and then explain if that quote is, generally speaking, true or false. Let’s begin…

“If people are waiting for the crash to come and for people to give away condos downtown, it’s not going to happen,” Spring developer, Perry Lorenz

True. Perry is right about this. The sky is not falling as some local papers would have you believe (cough, ***tesman). Yes, it is a buyers market, but it has been for a while. From September 1st through October 31st, the average discount from list price was 5.63% (pdf, source MLS for Area DT).

“People love to say that the condo market downtown is overbuilt. The ones that are built are sold. There aren’t empty condos hanging over the market.” Spring developer, Perry Lorenz

False. I could be misinterpreting what Perry is saying but, according to Mark Sprague who also appears in the article, we have 30 15 months of inventory (Thanks to Mark for calling me with updated info!) . The bottom line is that each building has a handful of condos available to purchase. A healthy number is 10% of the total units in existing buildings are for sale.

“The next project to hit the market, 360, has 90 percent of its units under contract and more than 98 percent reserved” writer, Mark Collins

True-ish. 360 was, at one time, completely sold out. However, by the time the units were ready for move in, many 360 buyers could no longer obtain a mortgage. Today I am aware of about 15 units back on the market.

“As the next three major projects come online — Spring, The Austonian and The W — more than half of the condominiums have already been presold, despite the fact that they won’t be ready until 2010.” writer, Mark Collins

2/3 True. Spring and The W are more than half presold. The Austonian is notorious for not releasing sales data. My educated guess is that they are around 20% presold. (btw, if anyone has better information please send me an email).

“It is healthy to get everything absorbed and then have another [condo] product come to market. But the thing is, there isn’t another building coming to the market.” Broker, Kevin Burns

True. If it’s not already under construction, then we aren’t likely to ever see it built.

“…these condo developers all have hired attorneys to write their contracts for them, and obviously those contracts are written to protect the developers instead of the buyers,” real estate agent Mike Doerr said. “It ties the buyer into the contract price, regardless of how the market shifts.” Agent, Mike Doerr

True. Developers’ purchase contracts tend to favor the developer. (Does this really surprise anyone?). Developer contracts are typically used when buying pre- or mid-construction. Once the building is complete the buyer has more control over the terms of the contract.

“Some contracts also allow an increase of anywhere from 5-10 percent of the original price.” Writer, Mark Collins

Maybe. I’ve never seen a clause like this, nor have I heard of it happening. It is plausible, however. If anyone can substantiate this please send me an email.

“…a third of the people are walking away from contracts,” … “That is another condo that has to go back on the market, and the value of that condo is 20 percent less than what it might have been when the market was robust.” Agent, Mike Doerr

Possible, but misleading. Since developers aren’t inclined to release that data, it is impossible to say for sure. We are limited to rumor and word-on-the-street information. I didn’t see 360 condominiums lose 133 buyers. It’s statements like these, which cannot be supported with real data, that fuel misinformed media coverage. Conversely, can I empirically back up my claim that his statement is false? No, because the actual data is held in confidence by the developers. Buyer fallout was less acute than 1/3 in my observation.

“The real way to have affordable housing is supply, supply, supply. Developers will overbuild to the point that they wreck their own market. I’m not predicting a crash, but there will be some containment. Ultimately, the rich guys will get tired of their 10-year-old condo and want to move up. The natural occurrence is the older stuff will become cheaper,” Spring developer, Perry Lorenz

True with a caveat. Cheaper doesn’t imply loss of value. The older stuff becomes relatively less expensive. Over time, construction costs increase, thus new developments are more expensive.

“Having retail just for the sake of having retail doesn’t make it better. It has to be retail that people want,” … “Our downtown has to grow into being a real downtown that has everything you need within walking distance. We are still not willing to give up our cars.” Banker, Eddie Safady

True. Until recently Downtown Austin was pretty homogeneous in its use of real estate - offices and bars. Whole Foods is the anchor. 2nd Street has plenty to offer [albeit expensive]. Congress Ave recently added Patagonia and Jos. A Banks. Royal Blue Grocery is outstanding. We have a CVS. We have dry cleaning. We have the Alamo Drafthouse. We have so much more than before. Yes, I still use my car, but only a couple of times each week. The mix of retail is improving, not only as a destination, but for those of us who live in Downtown Austin.

“The average condo price in downtown Austin fluctuates around $450,000, which means buyers have to find a bank willing to give them a jumbo loan or have a substantial down payment.” Writer, Mark Collins

False (according to MLS). MLS sales data from September 1st through October 31st show an average sale price of $389,520 for a Downtown Austin Condo (pdf). Note: MLS does not reflect developer sales. Since these projects are more expensive per square foot, the developers’ sales data would most likely increase the average price.

“…we have a lot of units available right now today,” … “But looking at the number of units that are absorbing and knowing there aren’t going to be any new projects deliverable in the near future, it’s now or never.” Broker, Kevin Burns

True. Projects that haven’t taken their first draw on their construction financing aren’t likely to be built. What you see is what you get for the next few years.

by Jude Galligan

‘Rural Density’ - Is this the beginning?

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Tue, 18 Nov 2008 14:29:48 -0600

One of several designs for Brad Kittel's Tiny Texas House

I think many downtown residents, musicians, artists, and anyone searching for something off the beaten path will appreciate this. Brad Kittel constructs and sells period-style dwellings — dubbed Tiny Texas Houses because they range from 100 to 500 square feet — as an answer to sprawling mansions and the myriad forms of exorbitance that come with them. (source: Statesman). Prices range from $40-90k.

Brad uses mostly reclaimed materials included siding, flooring, windows, hardware, and fixtures. You can see photos of his workshop on his website. The period-style dwellings are, in fact, modular and therefore could appeal to those already interested in the modular concepts of Rocio Romero or local firm KRDB’s Ma Modular.

originally posted at Downtown Austin Blog by Downtown Austin Realtor, Jude Galligan

Patagonia store is a welcome addition to Downtown Austin

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Mon, 17 Nov 2008 15:22:04 -0600

originally posted at Downtown Austin Blog

Patagonia is a welcome addition to Downtown Austin

This past weekend, Downtown Austin’s newest retailer, Patagonia, officially opened its doors. Located at 316 Congress Ave (map), Patagonia is a milestone in the revitalization of Congress Ave by bringing 7,000 square feet of outdoor clothing that Austinites seem to love. I make an effort to support businesses that make Downtown a better neighborhood. So, even though you might be spending less this holiday season, you should consider making the effort to spend that money at local small businesses and businesses that are revitalizing downtown.

According to the Statesman article, the store has shower facilities and bike accommodations for employees, supporting alternative commuting strategies and healthier lifestyles. Cool!

The DAA, and specifically Linda Asaf, need to be acknowledged here. They are working behind the scenes to help bring new retail, and new life, to Congress Ave. I am encouraged by property owners beginning to see the light, and investing in long term leases with credit tenants.

by Downtown Austin Realtor, Jude Galligan

the most interesting presentation on parking in the history of the world.

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Sun, 16 Nov 2008 15:45:42 -0600

originally posted at Downtown Austin Blog

photo courtesy of www.shipmentoffail.com

The most interesting presentation about parking in the history of the world (pdf).

(Okay, this is about parking so it’s dry as your grandmothers turkey. But, in the world of parking, this is a home run presentation. I’ve heard from DANA board members that Patrick Siegman, the guy who wrote the presentation, is an amazing speaker on the topic of parking and new urbanism.)

I’ll help out… below are three major reforms that could be applied to Downtown Austin parking.

1. Charge fair-market prices for curb parking
2. Spend the resulting revenue to pay for neighborhood public improvements
3. Remove the requirements for off-street parking

Over the past 48 hours there’s been lots of discussion over at Austin Contrarian about parking issues. This is encouraging because sometimes I wonder if our citizens recognize the immense impact that parking guidelines have on the look and feel of our city. Downtown Austin apartments, condos, and retail are putting more stress on the availability of [convenient] parking. Parking has a causal relationship with keeping cars on the road, walkability, and overall neighborhood-ness.

In October I was fortunate to be included in a delegation of Austinites sent to Vancouver in order to learn about how they’ve managed rapid growth and become one of the most admired cities in the world. One of their council members, Gordon Price, delivered one of the most impassioned orations about smart urban planning. One thing in particular that he said struck me…

“Show me your parking ordinance, and I’ll show you what your city looks like!”

Personally, this was a revelation. Will Austin City Council adopt new parking rules that will encourage use of mass transit and walkability? I hope so. The alternative is more cars, more roads, and more scorched earth strip malls.

Jude Galligan, Downtown Austin Realtor

Downtown Austin By The Numbers: How many dwellings?

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Fri, 14 Nov 2008 08:49:10 -0600

originally posted at Downtown Austin Blog

This is the first in a series of three articles aimed at uncovering the number of residences in Downtown Austin. So, how many dwellings are there? This seems like a simple question, doesn't it? I've never been able to get a satisfying answer - one that doesn't try to determine the number of residents using a multiplier, is not rounded up or down, and that clearly indicates what is currently being lived or ready for occupancy (not under construction).

You may ask, "why don't you just search Google?" Well, I did. I searched Google for "how many dwellings are in Downtown Austin". I used other iterations and synonyms of those search terms and could not find a satisfying answer. Much of the data available is old and/or disparate. The last U.S. Census was in 2000. The next is in 2010. Because I am your loyal Downtown Austin Realtor (plug!), I am uniquely suited to discover and share with you my count, building by building, of the number of Downtown Austin condos and apartments.

2,380 condos + 1,574 rentals = 3,954 dwellings

As of today, I count 3,954 existing dwellings in Downtown Austin. This should be accurate to within 3-5%. This is a count of every door that opens to a completed, ready to be lived in, condominium or apartment building.

A few notes on what is included and what isn't. I've included buildings that do not fall within Downtown Austin's boundaries; however, these buildings are geographically close and trade on the same Downtown amenities. There were just two: Bridges On The Park (condo) and 300 N. Lamar (rental). Those counts are indicated below, so you can amend the count if you are a purist. What's missing is a count of the few houses we have. Most of these are concentrated in the Northwest quadrant of Downtown, known as "Old Austin."

For a complete list of buildings included please see the article at Downtown Austin Blog

According to a recent report (pdf) from Charles Heimsath at Capitol Market Research, Downtown Austin has 5,900 residents. We've easily added another 500-700 residents to Downtown (AMLI on 2nd is nearly leased up, the Monarch is over 50% leased up, and closings began at 360, Sabine, and the Shore) since that report was completed last spring. One trend that I am happy to see is the emergence of Austin's urban family. Finding anything with more than two bedrooms could be a challenge in Downtown Austin until recently. In an upcoming article I'll talk more about the emergence of Austin's urban family and look for the number of dwellings, completed and under construction, with three or more bedrooms.

Legacy On The Lake - inside the A4 suite (w/video)

Jude Galligan - Downtown Austin Realtor (Urbanspace Realtors) — Thu, 13 Nov 2008 12:13:56 -0600

originally posted at Downtown Austin Blog

Footage of the A4 floor plan. For more information contact Jude Galligan, Downtown Austin Realtor/Locator @ (512) 226-3414

The Legacy On The Lake is located across the street from Milago Condominiums. The club room is one of the best I've seen in any Downtown Austin condo or apartment building. I advise my clients that have dogs and/or are interested in outdoor activities to look at the Rainey Street district. The trails are in your back yard and you can drop a kayak into the water less than 50 paces away.