Karlin Real Estate’s stalled mixed-use development near the home of Austin FC is back on track, but with a larger scope.
The Los Angeles-based firm, in partnership with Austin-based Ironwood Real Estate, updated its vision for Verde Square, a 6-acre project along Burnet Road, adjacent to Q2 Stadium, the Austin American-Statesman reported.
Verde Square, which received zoning approval three years ago, increased its plans to include 369 apartments, 450,000 square feet of office space, 35,000 square feet of retail, and a 190-room hotel. It will feature a 1-acre outdoor plaza with year-round events.
The developers expanded their plan because the zoning allows a maximum building height of 308 feet, or 27 to 30 stories.
Construction of Verde Square, one of many large-scale developments near the Domain business district, was supposed to begin in 2022 and be completed in 2025. But economic challenges such as high interest rates and construction costs stymied the project.
“As with all commercial real projects across the country over the last few years, the process has taken longer than originally anticipated because of the macro-economic environment,” Karlin co-founder Matt Schwab told the outlet.
The firm has taken advantage of the delay to “secure the right mix of tenants,” he said.
Meanwhile, another California-based firm, Kilroy Realty, has racked up $70 million in carrying costs — about $715,000 per month — on a development site in the same area that has been delayed for two-and-a-half years.
The Karlin venture aims to capitalize on the burgeoning economic landscape surrounding Q2 Stadium and the site’s proximity to major transit stations and employment hubs, such as the University of Texas J.J. Pickle Research Campus and the Charles Schwab campus.
Other large-scale projects in the area include the Terra at Domain Northside, a 21-story office tower by Dallas-based Northwood Retail, and a 20-story apartment building by Dallas-based Trammell Crow Company.
Houston-based developer Hines is planning a two-tower, 500,000-square-foot office project at 11901 North MoPac Expressway, dubbed Hines Domain Northside. Tech giant IBM has agreed to lease about 320,000 square feet, including one full building, once it’s completed.
—Quinn Donoghue
Read more
Development
Austin
Karlin, UT take bioscience off campus
Commercial
Austin
L.A. firm to renovate 1M sq.ft. Austin office campus
Commercial
Texas
IBM leases 50K sf of lab space in Austin