Austin Business Journal shares, "Plans for another mixed-use residential tower downtown took a step forward this week.
The Austin Planning Commission approved the proposed 66-story tower at 701 W. Sixth St. for inclusion in the city's downtown density bonus program on May 13, which would allow for the project to double its floor area ratio from 15:1 to 30:1.
The project could have 413 residential units and retail space, according to city documents. It's in a capitol view corridor, however, which limits how tall certain parts of it could go regardless of the density bonus program.
Property owner Kairoi Residential, a San Antonio-based developer, also is involved in building the tallest tower in Texas, called Waterline, at 98 Red River St. It recently finished what shortly was the tallest tower in Austin, Sixth and Guadalupe.
The location of Kairoi's planned Sixth Street project currently has low-rise commercial buildings on it and formerly housed the Whiskey Tango Foxtrot Icehouse. According to its website, that business is now located in East Austin along Seventh Street and is called Whiskey Tango Foxtrot Sporting Club.
Kairoi Residential bought the property in 2020 for an undisclosed amount. At the time, CEO Michael Lynd described it as well-suited for residential usage due to its proximity to bars, offices and restaurants.
Although the entitlement process for the project is moving forward, it's unclear when construction could start. Kairoi Residential declined to comment regarding the Planning Commission vote.
Market conditions aren’t great for large urban residential projects in Austin due to soft occupancy rates, high construction costs and interest rates. Another downtown developer, Wilson Capital, recently said it's delaying construction of a residential tower downtown due to poor market conditions.
The City Council is scheduled to hold a public hearing May 22 to discuss inclusion of Kairoi's project in the density bonus program."
Source: Austin Business Journal
Written by: Sean Hemmersmeier
Published: May 14, 2025
Posted by Grossman & Jones Group on
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