AUSTIN, TX-Anyone who’s ever driven on Interstate 35 through the Capital City in rush hour knows that traffic congestion here is comparable to that seen in cities three times its size. While the city’s infrastructure struggles to accommodate its population growth, a number of multifamily companies are solving the problem another way – with destination living.
“An ongoing issue in Austin is traffic since residents must share the main thoroughfare – Interstate 35 – with everyone else traveling north to south, anywhere from Canada to Mexico,” says Sean Sorrell, senior managing director with HFF’s local office. “Tollways and freeway expansions are providing the populace with some other options, but in the multi-housing realm,some of the problem is alleviated via destination living.”
Sorrell tells GlobeSt.com that destination living is a form of urban living outside Austin’s downtown. Destination living allows apartment residents to live closer to their work so they have shorter commutes. In some cases, they’re even able to walk to work.
A number of apartment developers – AMLI Residential, Gables Residential and Post Properties, among others – have completed successful projects in Austin’s CBD.“Due to their success, other areas of the city are continuing this urban living environment with destination living,” Sorrell says.
Sorrell contends the best example of the destination living trend can be found at The Domain. Envisioned and developed by Endeavor Real Estate Group and Columbus Realty Partners, this master-planned community provides “city” living witha number of residential and multifamily communities within walking distance of one another.
Sorrell says multifamily properties in The Domain are experiencing substantial occupancy and rent increases. He anticipates that they could be effectively full in the next two quarters, given the lack of new development.
In addition to The Domain, other destination living projects include Riverside Resources’ Crescent, a mid-rise property located in the South Congress district, and The Mosaic at Mueller, a luxury apartment project developed by Catellus Development Group as part of the redevelopment of the former city airport into a “destination” community.
“Additional urban living centers remain in the planning and permitting process, but with the forecast growth of the metro area in the next five years, these destination developments will only gain in popularity,” Sorrell concludes.
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