Hanover lists downtown tower as dealmaking starts to turn around

Hanover Company has listed the leasehold interest in Hanover Brazos Street, a recently completed residential tower in the heart of downtown Austin. 

The property targets the urban, Class A slice of the market that has seen intense competition in recent months as Austin handles one of the largest influxes of apartment construction in the country.

The tower, at 215 Brazos Street, lies a block away from the Austonian, one of Austin’s original condo towers. Hanover Brazos includes 308 rentals above 4,700 square feet of retail. It stands 45 stories tall, with a 44th-floor pool deck and top-floor gym for treadmill runs among the clouds. It spans 354,000 square feet. 

Hanover Brazos finished construction this year. Rents for a one-bedroom range from $2,621 to $3,462 per month, while two-bedrooms charge between $3,978 and $5,531 per month. The building is being marketed by a JLL team of Matthew Lawton, Robert Wooten, Ryan McBride and Robert Arzola. The asking price wasn’t disclosed.

Hanover Company, based in Houston, isn’t a stranger to downtown apartments. It developed Hanover Republic Square a few blocks west of its Brazos Street development. It also has two developments in Dallas’ Turtle Creek neighborhood.

The company’s recent deals extend outside Texas, too. In January, it sold a San Jose apartment tower to Hines for $117.5 million, nearly $472,000 per unit.

Austin’s multifamily scene has been seriously muted for almost two years now, as the combination of high rates, rent declines and a burst of new supply has deteriorated landlords’ power. A handful of sales have happened in recent months, though, particularly for newly built apartments, suggesting properties like Hanover Brazos have a path forward in the market. The most popular buyers have been large, well-capitalized firms like KKR, which acquired the Quarterra portfolio of newly built apartments, including several in Texas, for $2.1 billion in June. 

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