CAPELLA   AUSTIN  NEWSLETTER

May 15, 2022

NXP Considers Austin For More Semiconductor Manufacturing, Up To 800 New Jobs

ABJ – 5/11/2022

NXP Semiconductors NV may significantly expand its manufacturing operations in Austin as companies rush to boost chipmaking capacity in the U.S. The Netherlands-based semiconductor producer is considering adding to either of the two large campuses it already has in the Texas capital. The company could invest $2.6 billion and create 750 to 800 jobs.

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Shipping Container Retrofitter Falcon Structures Expanding In Manor

ABJ  – 5/9/2022

A high level of demand has convinced Stephen Shang, CEO of Falcon Structures, to expand the company’s 250,000-sq. ft. facility at 7717 Gilbert Road to roughly 400,000 sq. ft. When work is completed this summer, Falcon should be able to triple its current output of five to 10 containers a week, and at least double its workforce of 90.

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Developer To Start Construction On New Airbnb Concept In East Austin

CoStar – 5/12/2022

Construction is about to start on a new vacation rental project and concept in East Austin, Texas. The project would start on May 23 and take 12 months to complete.

The concept — a single investment group offering condo-style units for vacation rental via Airbnb or VRBO — is the first of its kind in Austin and differs from similar concepts like Natiivo, where an individual purchases a unit and is required by deed to offer it as a short-term rental. The 7 on 7th project will offer seven condo units for short-term rental on a year-round basis. The five-story building will take up more than 17,000 square feet on Seventh Street in East Austin. A restaurant will occupy the first level, with a parking garage on the second level.

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Westview In Downtown Austin Sells To LA Firm

ABJ  – 5/12/2022

2 Hot Austin Suburbs Rank Among America’s Most Livable Small Cities

Austin Culture Map – 5/9/2022

Two booming Austin suburbs are among the most livable small cities in America in 2022, according to personal finance website SmartAsset. This year’s SmartAsset study lists both Cedar Park (No. 44) and Georgetown (No. 63) among the best small cities (those with populations between 65,000 and 100,000) to live.

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Mothership Rising: Austin Shipping Startup Poised For Swift Growth

Austin American Statesman – 5/12/2022

Mothership, a software company that makes a platform for short-haul freight shipping operations, is looking to grow its team and expand its global reach after moving to Austin last year.  The company recently raised $76 million, and plans to use the funding to expand its platform and add to its employee team.

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Austin Pulls In Ranking As No. 16 U.S. Magnet For New Residents, Says Report

Austin Culture Map – 5/12/2022

A new ranking from PODS, a provider of moving containers, shows Austin was the No. 16 destination for its customers from January 2021 through March 2022. Sarasota, Florida, topped the list. The Dallas-Forth Worth area came in at No. 2, with Texas’ other major metro areas, Houston and San Antonio, at No. 12 and No. 13, respectively.

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Austin’s Historic Driskill Hotel Rolls Out Welcome Mat For New Owner

Austin Culture Map – 5/11/2022

The Driskill, Austin’s oldest and perhaps grandest hotel, has a new owner.  Chicago-based Hyatt Hotels Corp. confirmed it recently sold the downtown property to Dallas-based Woodbine Development Corp.  The Driskill, at 604 Brazos St., will remain part of The Unbound Collection by Hyatt luxury brand.

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Smokey Mo’s BBQ Turns Up The Heat On Expansion

ABJ – 5/11/2022

A few months after being bought by a private equity firm, Switchback Capital LLC, Smokey Mo’s BBQ is rolling out plans to open 32 additional locations by 2025. It currently has 16 existing restaurants, five of which are franchises. Eight of the 16 locations are in the Austin metro.  The company will also add corporate-owned stores in the Austin metro, with two slated to open later this year.

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M&A Wrap: Clearesult Grows EV Business; General Contractor DCA Acquired

ABJ – 5/12/2022

♦ CLEAResult Consulting Inc. — an Austin-based company that helps businesses, power providers and individuals go green — has purchased ChooseEV, which compiles data on the electric vehicle market.
♦ Austin-based DCA Construction LP has been purchased by W.E. O’Neil Construction Co., a general contractor with operations around the country that is 100% employee owned.
♦ Austin Perinatal Associates, a private maternal-fetal medicine practice based in Austin, has been acquired by Texas Children’s Physician Group, the practice of doctors who work at Texas Children’s Hospital.

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H-E-B Opens Pair Of Health Clinics In Austin Area, Plans More

ABJ – 5/12/2022

Grocery giant H-E-B LP, already the largest private-sector employer in the Austin area, is expanding into health services in the Texas capital by debuting Wellness Primary Care facilities.

The San Antonio-based retailer recently opened two medical clinics in Austin this month: in Leander on May 4 and on South Congress Avenue on May 12. H-E-B already has four clinics in San Antonio and one in Houston, and more clinics are expected to come online throughout the Austin area next year.

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Funding Wrap: Measured, Concerto Each Snag $21M For Marketing Analytics, Baseball-Branded Credit Cards

ABJ – 5/9/2022

• Measured Inc., which makes a software platform to measure the impact of marketing campaigns, has raised $21 million from Telescope Partners.
• Shortly after announcing it has moved its headquarters to Austin from California, property tax fighting startup Ownwell Inc. raised $5.7 million in seed funding led by First Round Capital.
• ATX Venture Partners is raising a $125 million primary fund for seed and series A investments and a $250 million to $500 million growth equity fund.

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Work Underway On East Austin Office Project

Commercial Property Executive  – 5/6/2022

Work is underway at Alto, a 110,000-square-foot office project in the East Austin submarket, developed by a partnership between AQUILA Commercial and institutional investors advised by J.P. Morgan Asset Management. The Class A creative office, formerly known as 7th and San Marcos, is expected to come online in the fourth quarter of 2023. Upon completion, Alto will occupy less than an acre at 924 E. Seventh St., the highest point in the East Austin submarket. The five-story office building will take shape atop four levels of underground parking.

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More Than 1,000 New Homes Planned For Williamson County Development

Austin American Statesman – 5/11/2022

More than 1,000 new homes are planned for the Vineyard at Florence, a Tuscan-style resort, vineyard and winery spanning more than 600 acres in Williamson County.

With estate lots selling at a “brisk pace” in the first phase, executives with the resort community said that more than 1,000 additional home sites are planned in future phases over time. The first residential phase began last year and is almost completed.  The resort is near the town of Florence, about 50 miles northwest of Austin, where the housing market is seeing strong demand and surging home prices.

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Commercial Real Estate Awards: Austin’s Best Real Estate Deals Crowned

ABJ  – 5/13/2022

Transaction winners were crowned May 12 in the Commercial Real Estate Awards in four categories: office, industrial, multifamily and retail. Winning transactions include:
» Teacher Retirement System of Texas purchase of Mueller building for new headquarters.
» CelLink lease at Gateway35 in Georgetown.
» Flatiron Domain, a trophy asset in the dynamic Domain neighborhood in North Austin.
» The new Tesla center in South Austin.
Click on the link below to read more.

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Real Estate Roundup: CenterPoint Properties Buys Into Hutto, Plus Dozens More Deals

ABJ  – 5/9/2022

• CenterPoint Properties Trust has acquired a two-building, 361,467-sq. ft. industrial park in Hutto. The buildings are located at 1050 and 1070 New Technology Blvd., tucked between U.S. Route 79 and SH-130.
• Elsewhere in Hutto, Miami-based AHS Residential LLC announced it closed on financing for AHS Hutto Square, a 204-unit garden-style apartment community set be delivered in the second quarter of 2023.
• 6414 River Place Blvd Austin LLC purchased a 15,862-sq. ft. office building at 6414 River Place Blvd. from BRHG Austin Property One LP.

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South Congress Retailers Grapple With Street’s Future As Rents Touch $150 Per Square Foot

ABJ  – 5/12/2022

There’s one place in Austin where retailers pay Manhattan-like rents: South Congress Avenue. Interest from around the globe has boosted demand to stratospheric levels for a city known more for cowboy boots than expensive handbags.  South Congress is one of the few places in the country where retail rents now push into the triple digits.

John Heffington with CBRE does not expect South Congress to turn into Rodeo Drive in Beverly Hills but said more high-end retailers like Hermès at 1221 S. Congress Ave. are sure to follow.

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Canadian Firm Expands Its US Single-Family Rental Footprint By Hundreds of Buildable Lots

CoStar – 5/9/2022

A Canadian real estate developer is expanding its U.S. footprint in building single-family rental homes as the niche sector is expected to strengthen with a shortage of housing. Toronto-based residential builder Great Gulf Group announced that it bought 787 residential lots spread between seven master-planned developments in three metropolitan areas in Texas: Austin, Houston and San Antonio.

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Real Estate Firm Eyes Mixed-Use Rehab, Redevelopment In Hopes Of Revitalizing Austin’s Sixth Street Entertainment District

Community Impact  – 5/10/2022

Los Angeles-based investment firm TruAmerica Multifamily has acquired Cannon Oaks, a 230-unit apartment community in Austin. Built in 2003, Cannon Oaks offers a mix of two-, three- and four- bedroom apartments averaging roughly 1,000 square feet. The amenity package comprises a pool, fitness center, clubhouse and a children’s play area. TruAmerica plans to renovate interior units with new quartz countertops, stainless steel appliances, vinyl plank flooring, white shaker cabinetry and upgraded lighting and plumbing fixtures.

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Council Gives Rezoning Approval For 11.25 Acre Townhome Development Just South Of Downtown Round Rock

Community Impact – 5/12/2022

Round Rock officials rezoned a new housing development south of the city’s downtown area to a planned unit development.  Plans for the project include a maximum of 410 urban multifamily units and 19 townhomes.

The project along E. Logan and S. Mays Streets was previously zoned for single family, commercial and light industrial use, but officials unanimously approved the change during a May 12 city council meeting. The proposed project is known as the Arte PUD by developer W.B. Property Group.

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Private Equity Firm Buys Planet Fitness Franchisee For Reported $675 Million

CoStar – 5/10/2022

Another major franchisee of fast-growing Planet Fitness has been sold, and this time the health club chain itself isn’t the buyer. Olympus Partners, a Stamford, Connecticut-based private equity firm, has acquired Excel Fitness Holdings, a Planet Fitness franchisee serving Austin and Dallas in Texas. It was reported that the transaction was over $675 million, a vote of confidence for the health club industry.

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