Mega-developments planned for SH 130
Retail Battles Heat Up for Land, Anchors
August 2, 2006
By Connie Gore
GlobeSt.com
Copyright 2006
AUSTIN-A handful of retail developers are elbowing for land positions on the easternmost boundary of the capital city, using the Texas 130 toll road path as their beacon. Market watchers say the activity is guaranteed to heat up further in the next six to nine months.
"130 is really going to be the story for the next two or three years," says Travis Waldrop, a retail specialist with NAI Commercial Industrial Properties Co. in Austin. "In six to nine months, we will see some of those bigger players line up, but we won't see a site plan for at least nine months."
Todd Wallace, market leader and senior vice president in Austin for Staubach Retail, predicts for GlobeSt.com that the key intersections could be pushing one million sf once the development seeds are planted. The crossroads to watch will be Interstate 45, US Highway 290 and Texas 71 and 79, all in the path of a 90-mile toll road being built to divert some traffic from the NAFTA Highway or Interstate 35. If Wallace's prediction is on target, it will be the Interstate 45 junction that first comes alive, possibly as early as 2008. And if Waldrop's prediction holds true, the big play will be US Highway 290's junction.
"Everyone's trying to circle around SH 130 and get their tract in front of the big retailers first," Wallace says, explaining the development push is underlain with multiple opportunities. "At each intersection, there are one or two good sites."
The race now is focused on landing giants like Target Corp., Wal-Mart Stores Inc., Home Depot Inc. and Lowe's Cos. Inc. "The junior anchors," Wallace says "are waiting to see where the anchors land." The reality is there are only so many anchors to support the mega-developments so it's clearly going to be a hard-fought battle to the finish.
Eastbourne Investments Ltd. has roped off a southern section along the Texas 130 path, but 10 miles to the north is where the activity is really heating up. Those known to be in the running are Archon Group of Dallas, Endeavor Real Estate Group of Austin and NewQuest Properties of Houston, but others are sure to become part of the competitive mix. Some developers have control of their sites; others are still shopping.
Feeder roads and portions of the toll road are opening this year, but only as far as the US Highway 183 interchange. Market speculation about home and retail development was salted in recent weeks when Spain's Cintra Zachry pledged to invest $1.3 billion of its capital to build the toll road's last 40 miles to link Austin to Interstate 10 near Seguin. With that pledge, the road's now on track for a 2012 completion.
The public-private partnership pact with the Texas Department of Transportation includes deploying millions of dollars for right-of-way costs to ease the financial burden from Caldwell, Guadalupe and Travis counties. In exchange, Cintra Zachry will share in the revenue for 50 years, eventually building its claim to a 50-50 split. According to state projections, the toll road could generate $1.6 billion over the life of the agreement. Cintra Zachry not only will build the freeway, but will be responsible for cost overruns and post-construction operation and maintenance for the duration of the pact.
"Now that 130's going to be completed, that's going to change the dynamics of Austin's growth pattern," Wallace explains. "Retailers are recognizing that and positioning themselves."
Waldrop and Wallace agree that the retail plays will be 70 acres or more. Wallace, in fact, has two tracts--98 acres and 77 acres--in the development path. And, one is under contract, but he can't say which one just yet.
© 2006 ALM Properties, Inc:www.globest.com
August 2, 2006
By Connie Gore
GlobeSt.com
Copyright 2006
AUSTIN-A handful of retail developers are elbowing for land positions on the easternmost boundary of the capital city, using the Texas 130 toll road path as their beacon. Market watchers say the activity is guaranteed to heat up further in the next six to nine months.
"130 is really going to be the story for the next two or three years," says Travis Waldrop, a retail specialist with NAI Commercial Industrial Properties Co. in Austin. "In six to nine months, we will see some of those bigger players line up, but we won't see a site plan for at least nine months."
Todd Wallace, market leader and senior vice president in Austin for Staubach Retail, predicts for GlobeSt.com that the key intersections could be pushing one million sf once the development seeds are planted. The crossroads to watch will be Interstate 45, US Highway 290 and Texas 71 and 79, all in the path of a 90-mile toll road being built to divert some traffic from the NAFTA Highway or Interstate 35. If Wallace's prediction is on target, it will be the Interstate 45 junction that first comes alive, possibly as early as 2008. And if Waldrop's prediction holds true, the big play will be US Highway 290's junction.
"Everyone's trying to circle around SH 130 and get their tract in front of the big retailers first," Wallace says, explaining the development push is underlain with multiple opportunities. "At each intersection, there are one or two good sites."
The race now is focused on landing giants like Target Corp., Wal-Mart Stores Inc., Home Depot Inc. and Lowe's Cos. Inc. "The junior anchors," Wallace says "are waiting to see where the anchors land." The reality is there are only so many anchors to support the mega-developments so it's clearly going to be a hard-fought battle to the finish.
Eastbourne Investments Ltd. has roped off a southern section along the Texas 130 path, but 10 miles to the north is where the activity is really heating up. Those known to be in the running are Archon Group of Dallas, Endeavor Real Estate Group of Austin and NewQuest Properties of Houston, but others are sure to become part of the competitive mix. Some developers have control of their sites; others are still shopping.
Feeder roads and portions of the toll road are opening this year, but only as far as the US Highway 183 interchange. Market speculation about home and retail development was salted in recent weeks when Spain's Cintra Zachry pledged to invest $1.3 billion of its capital to build the toll road's last 40 miles to link Austin to Interstate 10 near Seguin. With that pledge, the road's now on track for a 2012 completion.
The public-private partnership pact with the Texas Department of Transportation includes deploying millions of dollars for right-of-way costs to ease the financial burden from Caldwell, Guadalupe and Travis counties. In exchange, Cintra Zachry will share in the revenue for 50 years, eventually building its claim to a 50-50 split. According to state projections, the toll road could generate $1.6 billion over the life of the agreement. Cintra Zachry not only will build the freeway, but will be responsible for cost overruns and post-construction operation and maintenance for the duration of the pact.
"Now that 130's going to be completed, that's going to change the dynamics of Austin's growth pattern," Wallace explains. "Retailers are recognizing that and positioning themselves."
Waldrop and Wallace agree that the retail plays will be 70 acres or more. Wallace, in fact, has two tracts--98 acres and 77 acres--in the development path. And, one is under contract, but he can't say which one just yet.
© 2006 ALM Properties, Inc:
posted by Porkus Maximus Tex: at Wednesday, August 02, 2006
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