44 Condos Will Rise in Capitol's Shadow

AUSTIN-In an off-market deal, a Dallas-based development group has acquired a key tract to build 44 condos within three blocks of the Capitol and the University of Texas. The redevelopment of the half-acre, ready-to-go site will begin in July.

Stonehill-PRM Realty's top execs expect to have final construction bids in hand within a month. The Presidio at Judges Hill, named by the neighborhood association, is ticketed for completion in September 2007. Stonehill-PRM's Austin partner John Davenport tells GlobeSt.com that the scraped tract was bought last week after six months of off-market talks with B&H Enterprises of Austin, part of the development team for the 55-unit Piazza Navona Condominiums at 711 W. 26th St., also within blocks of UT.

The Presidio at Judges Hill, designed by Allan Nutt of Austin, will be a five-story building with two levels of underground parking at the intersection of Martin Luther King Boulevard and West Avenue. Based on preliminary estimates, condos will be tagged at $350,000 to $450,000 apiece, according to Davenport.

Despite Austin's barriers to entry and recognized development hurdles, Davenport says the Presidio is destined to stay on schedule. "We are focused on playing by the rules and not asking for too many variances," he says. We focus on fitting development into the rules that are in place."

Stonehill-PRM, formed 2.5 years ago, is pushing out its second land play in Austin. "We do acquire existing properties, but the Austin focus is development for now," says Tom McDaniel, a principal in the Dallas headquarters. The private investment and development partnership concentrates on multifamily, student housing and hotel properties, mostly ground-up projects as it's planning for Austin. "We think the Austin market's in a recovery mode and the demographic trends are positive for Central Texas," McDaniel says, alluding to several more projects in the pipeline, but not yet ready to discuss.