Veloway Threads Buys Properties in South Austin’s St. Elmo

Veloway Threads has tightened its hold on South Austin’s bustling St. Elmo Arts District.

The Austin-based firm that owns the Yard, the anchor development of the St. Elmo district, recently purchased eight properties in the area, most of which are industrial buildings with existing tenants, the Austin Business Journal reported.

Terms of the deal were not disclosed. Twin Oaks Associates is listed as the previous owner, according to the Travis Central Appraisal District.

With the assemblage — which includes 109 and 305 Industrial Boulevard, 4315 and 4319 Terry O Lane, 3615 and 4307 Willow Springs Road, 227 East St. Elmo Road and 820 Shelby Avenue — Veloway’s South Austin portfolio comprises 1.75 million square feet of developable land and 500,000 square feet of flex warehouse space. The firm purchased six other St. Elmo properties in the past year.

Veloway aims to revamp the newly acquired buildings, aligning with the area’s transformation from an industrial hub to a thriving mixed-use district.

“We’re really big on adaptive reuse,” Veloway’s Priscilla Sauceda told the outlet. “There’s no intent to demo any of those existing buildings and put a brand new commercial goods space on them. There’s a lot of good bones in the area … you could paint and upgrade the interiors, or HVAC system, things like that as needed.”

Veloway’s the Yard, located next to a Tesla showroom, includes tenants like Spokesman Coffee, St. Elmo Brewing Company, the Austin Winery and Takas Sake Company.

Other investors are flocking to St Elmo, leading to a surge in residential and commercial developments.

Leifer Properties is plotting a large mixed-use development of its own, as it’s working to rezone an assemblage of old industrial properties in the area to make way for more than 1,000 multifamily units, 20,000 square feet of retail space and a brewery.

In November, SomeraRoad acquired the unfinished St. Elmo Public Market at 4329 South Congress Avenue, with plans to convert the 42,000-square-foot building into a bar and arcade.

—Quinn Donoghue