South Lamar mixed-use project gets $75M in funding as area faces huge growth
Lamar #Lamar
A new mixed-use project on rapidly transforming South Lamar Boulevard has received $75 million in funding to move forward.
The 182-unit development at 2323 S. Lamar Blvd. will include more than 6,000 square feet of street level and office space. The site was formerly a used car lot.
National real estate financing firm Knighthead Funding, based in Greenwich, Conn., will provide the funding. The project is planned for completion in the second half of 2024.
Situated on an 80,900-square-foot site, the five-story development will include floor plans for studio, one- and two-bedroom residences as well as four work units.
“This is the fifth Austin condominium project that Knighthead has financed for since 2020,” said Henry Boeckmann, Knighthead vice president. “The previous projects we financed are performing at exceptionally high levels. With demand in the market continuing to remain strong, we expect this asset to perform equally well.”
More:Developer plans hundreds more apartments along South Lamar Boulevard
According to real estate marketing firm CoStar, Austin is likely to outperform many of its peer markets because of its high percentage of young adults. Roughly 25% of the metro’s population is between 20 and 34 years old, including a large portion of students who choose to stay after graduation.
“Fortune 500 companies continue to relocate to Austin bringing a steady stream of new residents that will further drive demand for the kind of housing that this project is providing,” said Knighthead principal Jonathan Daniel. “Our loan will allow the sponsor to build on the success they have had producing quality housing in this high-growth market.”
Hundreds of apartments are planned for South Lamar Boulevard, which for years has been undergoing an apartment-building boom that has added scores of multifamily units along the busy road.
One of the latest projects, by developer Seamless Capital LP, is called 2700 S. Lamar Blvd.
The project will bring more than 400 apartment units in a development covering several tracts — just under 5 acres in all — on the west side of South Lamar near Menchaca Road.
The parcels include lots that stretch from a former Goodwill retail outlet and extend north, including a site that until recently was home to a Gourdough’s brick-and-mortar restaurant.
A new restaurant — the Tailor Shop Foodery, which says it will feature several different food concepts — will replace the former Gourdough’s under a short-term lease.
The Tailor Shop will have two outdoor patios with an outdoor stage for live music and will showcase multiple rotating local food concepts under one roof, with a couple of outdoor food trucks.
BelaCor Hospitality, a private investment group investing in hospitality-driven entrepreneurs in Austin, is behind the Tailor Shop project.
This article originally appeared on Austin American-Statesman: South Lamar mixed-use project gets $75M in funding as area faces huge growth