search

The Real Deal Logo

Trending

BH Properties offers $10M to bankrupt Oceanwide Plaza to keep lights onBH Properties offers $10M to bankrupt Oceanwide Plaza to keep lights onCity nabs control of Red Hook waterfront, plans redevelopmentCity nabs control of Red Hook waterfront, plans redevelopmentWhole new world: How NYC values 421a, 485x sites nowWhole new world: How NYC values 421a, 485x sites nowIt’s not just Arbor: Syndicator lender Ready Capital chokes on past-due debtIt’s not just Arbor: Syndicator lender Ready Capital chokes on past-due debt
Development
Texas

Mark IV puts office component on back burner of Round Rock project

Switching gears to residential, retail pieces of $200M development

Office Struggles Have Stalled Round Rock Development
Rendering of The District in Round Rock with Mark IV Capital's Bob Boone (Mark IV Capital, RoundRockTexas.gov)

A struggling office market threw a wrench in Mark IV Capital’s plan for a large mixed-use development into Round Rock.

The California-based firm is at the helm of The District, a $200 million project where 3 million square feet of office space was planned, along with 230,000 square feet of retail, 1,600 multifamily units and a 250-key hotel.

Mark IV missed a 2022 deadline to complete construction on 120,000 square feet of office space, part of its 2019 development agreement with Round Rock, which would’ve reimbursed the firm less than $13 million for infrastructure improvements. The developer hasn’t applied for an amended agreement, the Austin Business Journal reported.  

Little progress has been made on the project, spanning 65 acres near Dell Technologies’ headquarters, but the firm remains invested for the long term, the outlet said.

Instead of an office building, which had been planned as the focal point of the first phase of development, Mark IV plans to start with residential and retail components.

Design and permitting for that is expected to be completed by the third quarter of next year, said Mark IV’s Austin-based Bob Boone.

The situation could change if the office development attracts pre-leasing, he said. 

Sign Up for the undefined Newsletter

CBRE is on the hunt for prospective tenants, and robust lease signings could trigger the start of construction. The office building is fully permitted for infrastructure and construction.

Shying away from office development is a trend in Austin real estate, amid skyrocketing office subleasing, soft tenant demand and high interest rates. 

Among those switching gears is Related, which is developing pure residential at One Ladybird Lake, where it had previously planned a 15-story office building.

Meanwhile, the overall vision of The District, described as “live, work, play,” remains the same, Boone told the outlet. 

“We are excited to deliver a product that is currently nonexistent within Round Rock,” he said.

—Quinn Donoghue 

Read more

Companies and People
Mark IV CapitalBob Boone
Tags
CommercialMixed-useResidential