A $500 million development that calls for more than 2,500 houses, 1,500 multifamily units and commercial space is in the works for fast-growing Southeast Austin

The developer is Houston-based Hines, an international real estate firm. Its partners are Vancouver-based Trez Capital, based in, Dallas-Fort Woth-based Caravel Ventures and Tokyo-based Sumitomo Forestry.

The project — which is being called Mirador — will be developed at a cost of more than $500 million, according to Hines executives. The company said financing is in place, but did not provide additional details.

The Hines-led development group said this week that it has closed on the sale of the 1,400-acre site for the project. The property is bounded in part by Pearce and Wolf lanes, south of Texas 71 and near the Texas 130 tollroad. The land was purchased from Qualico. The purchase price was not disclosed.

The property is near the Circuit of the Americas racetrack and southeast of Tesla's new $1.1 billion electric vehicle manufacturing plant in a booming part of Central Texas.

Construction on the first homes at Mirador is expected to begin late this year or early next year, with home sales due to start in 2023.

Builders in Mirador will include Gehan Homes, Lennar Homes, David Weekley Homes, Highland Homes, MHI Homes.

The 2,500 single-family houses are to be developed in phases over six years or so, Hines said.

Along with homes, Mirador's plans call for 50 acres of apartments and townhomes — more than 1,500 units in all, including duplexes and quadplexes —  plus 75 acres for retail and other commercial uses.

The development's plans call for a 60-acre lake, more than 600 acres of greenbelt, community parks, trails and swimming pool.

“As Austin continues to grow into the tech epicenter of Texas, coupled with a supply-constrained market, the demand for new housing is at its highest,”  Dustin Davidson, managing director at Hines, said in a written statement.  “Mirador will be critical in providing more options for Austin’s growing population."

Davidson said Hines has been a believer in the southeast Austin market, which had been undergoing a growth spurt even before Tesla started building its manufacturing plant in 2020.

"Tesla has confirmed our thesis and we remain excited about the area," Davidson said in an email.

The property purchased for Mirador had previously been planned to be part of Qualico's Sun Chase subdivision, which is just south of the planned Mirador project, said Eldon Rude, an Austin-based housing market expert.

With development approvals already in place, Mirador's developers will be able "to begin delivering lots and new homes much quicker than if they had bought raw land in this (area)," Rude said.

"As the amount of land suitable for single-family development becomes more scarce closer to Austin, not to mention substantially more expensive, this southeast submarket is attracting significant attention from builders and developers who plan to open new communities in the area in the coming years," Rude said.

Bryan Glasshagel, senior vice president for housing market research firm Zonda, said that "while Tesla is always the first thing mentioned when talking about growth in southeast Austin, infrastructure improvements (such as the Texas 130 and Texas 45 tollways) are making this location much more accessible."

"When paired with proximity to Central Austin, areas such as Del Valle are poised for significant additional residential development," Glasshagel said.

Glasshagel said Mirador is expected to offer homes in the entry-level and move-up price points, so it " should quickly become one of the most active master-planned communities in Austin." 

The Austin market continues to be challenged by a lack of housing inventory, as the region's job and population growth have demand for homes exceeding the supply. In December, the median home sale price set records for the five-county region, reaching $476,700, up 30.6% from December 2020. Within Austin's city limits, the December median sale price was $555,000, up 19.4% from December 2020, according to data from the Austin Board of Realtors.


Source: Austin American Statesman 

Posted by Grossman & Jones Group on


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