The apartments, however, have drawn opposition from a neighborhood group. The North University Neighborhood Association says the project has too many apartments, inadequate provisions for parking and proposed buildings are too tall. The developer has reduced the number of units from 163 and made changes to the parking layout.
The zoning change, from commercial to a multifamily category, goes to the council with recommendations for approval from the planning and zoning commission and city staff. Glenn Rhoades, a city staffer, tells GlobeSt.com that multifamily zoning suits the neighborhood better than the current zoning, which allows for an even busier development.
The 2.4-acre triangular tract is bounded by Guadalupe Street and Hemphill Park. The site contains a Blockbuster video store and a small office building. A historic home has been moved.
If the Villas on Guadalupe gets the zoning change, the developer must still get a site plan approved and prepare construction documents, says Mike McHone of McHone Real Estate, who's representing the project before the city. The developer and owner of the property is Villas on Guadalupe Ltd., a partnership based in Houston.
McHone tells GlobeSt.com that the project will have 40 one-bedroom units, 92 two-bedroom units, nine three-bedroom units and 10 four-bedroom units. Rents haven't been set , but will be priced at market rates. He says 5% of the units will meet affordable housing guidelines.
McHone says the developers aren't concerned about the impact the economy might have on demand for the apartments. Market researchers have said Austin's apartment market has been overbuilt, with occupancy rates going down and concessions going up.
"This is a student-oriented project," McHone says. "We're very confident that the student market is here. This is a project that will move students closer to the university." He says he expects the Villas to draw student apartment dwellers from other parts of town.
The university area is the last to feel the impact of an economic slowdown, according to Robin Davis of Austin Investor Interests, which tracks the apartment market in Austin and San Antonio. The occupancy rate for the overall Austin market is 88.5%, she tells GlobeSt.com, but 96% in Central Austin. That figure, however, is lower than the previous quarter, she says.
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