Developers plan $270M play to transform South Austin neighborhood with popular bars

The South Austin Entertainment District is the new Rainey Street, or at least that’s what a group of bar and property owners in South Austin are banking on.

They are investing $270 million to create a mixed-use district that could become the new go-to spot for nightlife in the city, the Austin Business Journal reported. Three apartment complexes are already in development nearby, giving a boost to the plans.

The project, spearheaded by the South Austin Bar and Property Owners Association, would transform a far-out strip of bars into a vibrant district with a mix of residential, retail and entertainment, including restaurants, bars and music venues.

The association includes MN&O Investment Group, Austin NNN and Investcor. They plan to create a one-mile hike-and-bike trail for the district, which lacks sidewalks, the outlet said. 

Austin NNN has purchased 22 land parcels in the area, plus several single-family homes that were built in the 1950s. The firm plans to have them rezoned for commercial use and convert them into restaurant and bar spaces. It also has plans for new construction.

The proposed district, south of Slaughter Lane on Menchaca Road, is already home to popular bars, including the Armadillo Den, the Hive and South Austin Beer Garden. 

Plans are still hazy, but the association expects to start work on the trail as early as January, and the district could take shape within a year or two.

Apartment projects in development nearby include United Properties’ 302-unit Shelby Ranch, at 2212 Lynnbrook Drive. Work began on the 8-acre project a year ago, and it could be delivered by late next year. It will have a chicken coop, community food garden, bee hive and fruit-bearing trees. The Minneapolis-based developer intends to have the complex certified as a wildlife habitat by the National Wildlife Federation.

Also nearby, Invescor is developing the Local, a 233-unit apartment complex with a 6,800-square-foot restaurant, whose address wasn’t reported. MNO Partners also has plans for a 438-unit apartment complex nearby.

—Rachel Stone

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