So Downtown Austin has at least 31 new residents/tenants in the Sabine on 5th. Auction prices were at least double the initial bids averaging $228 a sq. ft. The better units, in my humble opinion were the 1467 sq ft 2 bedroom/ 2 bath units with views of 5th St...these were corner units so they had ample windows. The units 305, 605, 805 and went in range from $276,000 to $309,900, based upon level (higher units get higher prices).
The best 2Bd/2 bath 1400+ sq ft units looked towards the north across 6th street and beyond to the Capital and UT tower. The units 801, 1001, 701, & 401 ranged in price from $319,000 to $365,000.
The lowest priced unit was a 1Bd/1Bath sardine can that looked directly into someone else's hotel room at the Hilton Garden Inn...price? $166,400. But I guess the good news is that they would not have much heat from the sun...
Conclusions? 1. Some folks want to live in Downtown Austin regardless of the location and view of their unit. 2. I wonder what the folks who paid full market value in 2008 think of these prices...they can not be happy. By my calculations, one owner has lost $218,000 in value in 2 years. OUCH! 3. Make sure the developer of the project you buy in has deep pockets and sure financing....you do not want to be the guy in #2!
These prices should represent a great buying opportunity with the proposed Waller Creek Development project for those wishing to owner occupy ....but for investors looking for immediate cash flow...the prices were just too high to justify the purchase.
Love Downtown Austin.....Just Be Careful....
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