Construction has started on Waterline, a 74-story, mixed-use high-rise in downtown Austin from developers Lincoln Property Co. and Kairoi Residential that will become the tallest tower in Texas when it is completed in late 2026.
The skyscraper, which will be targeting LEED Gold certification, will include 352 luxury apartment homes, 700,000 square feet of office space and the 251-key 1 Hotel Austin. It will be the first Texas location for the global hospitality company SH Hotel Resorts’ sustainability-focused 1 Hotels brand.
The Public Sector Pension Investment Board, one of Canada’s largest pension investment managers, is the main equity partner. Blackstone Mortgage Trust Inc. provided a $675 million construction loan for the development. Eastdil Secured served as the financial adviser to the sponsors.
Carole Guérin, managing director & head of Americas real estate investments at PSP Investments, said in a prepared statement the investment represents significant upside potential because of Austin’s continued expansion as a top-tier U.S. market with a high quality of life, supportive business environment, employment opportunities and growth as a hotbed for technology and innovation.
Katie Keenan, CEO of BXMT, said in prepared remarks they continue to see strong demand for new, best-in-class residential, office and hospitality assets in high-growth markets like Austin.
LPC has three downtown Austin high-rise projects that have broken ground in the last three years. It is also co-developing Sixth and Guadalupe, a 66-story mixed-use project, with Kairoi Residential and DivcoWest that will have 349 luxury residential units, 589,112 square feet of Class A office space and nearly 10,000 square feet of retail. The Republic, a 48-story office tower being co-developed by LPC, DivcoWest and Phoenix Property Co., is slated to open in late 2024.
Designed by KPF, Austin’s first supertall will reach a height of 1,022 feet. Located at 98 Red River St., the mixed-use building will be situated on a 3.3-acre campus near the intersection of Waller Creek and Lady Bird Lake. The tower will serve as a new gateway from the Central Business District to the Rainey Street Historic District. The project will add two pedestrian bridges over the creek from the west and three public pedestrian and bike access points to the Waterloo Greenway from the east. The development team plans to contribute $1 million to the Waterloo Greenway Project for improvements to the 1.5-mile urban trail that connects the University of Texas at Austin to Lady Bird Lake.
Waterline will feature floor-to-ceiling windows, warm textures and native stone. The luxury residences will be located on the top 33 stories. Residents will have access to two pools on the 41st floor, along with a lounge, bar, kitchen and coworking space. Other amenities include a movement studio, workout studio, steam room, soaking tubs, hammocks, barbecue pit and communal dining area.
There will be 24,000 square feet of retail and restaurant space overlooking Waller Creek and the Waterloo Greenway. 1 Hotel Austin will have 13 floors including a ballroom and meeting space on the 14th floor and a rooftop pool with food and beverage service on the 16th floor.
Office space will be located on 27 stories of the tower, with a 14th floor amenity deck with 24,000 square feet of outdoor space, a bar, lounge, indoor meeting spaces and prep kitchen for special events. Office tenants will have access to a 7,000-square-foot fitness center on the second floor including a yoga and dance studio.