"The housing market's tough these days," acknowledges Avalon COO and vice president of operations John Gilbert, who oversees the firm's Austin office. "But with this size project the entitlement process takes anywhere from a year to 18 months to complete. Even though we started the process a few months ago, it still won't be ready for delivery till sometime in 2010. I think that's good timing, especially, for infill positions."

Gilbert emphasizes that the site's location in a fully developed market is what makes the development feasible. "Going out on the periphery would not be a good choice, but infill positions are still situated well," he says. "By 2010, there will be a market for infill locations."

Avalon acquired the property from Austin-based Solo Star Realty Inc. Gilbert tells GlobeSt.com he originally talked to Solo Star owner William Welch about the property more than a year ago. He says he was in the process of refocusing the firm's local development efforts on closer-in locations when they had the initial discussions, but he decided not to pursue the opportunity because of the price. "The price they were originally trying to move it at didn't work for us," he explains. "But time helped, and I was able to get back with Solo Star months later and work out a more attractive deal." He chooses not to reveal the ultimate selling price.