CSW Development Moves on South Austin Multifamily Project

CSW Development has begun demolition on the former Strait Music Company building in South Austin to make room for a multifamily development.

The local developer plans to build a five-story apartment building at the intersection of South Lamar Boulevard and West Ben White Boulevard, the Austin Business Journal reported. The project will span 240,000 square feet at 4215 South Lamar Boulevard. The number of units wasn’t reported.

The 3.8-acre property is next to Lakehills Plaza, a 76,000-square-foot Target-anchored retail center. The development received local approval last April.

Amenities will include a pool, co-working spaces and a fitness center. A timeline for the project’s completion hasn’t been provided. Travis Central Appraisal District last assigned the land a taxable value of $13 million, or $3.4 million per acre.

Under CEO Todd Wallace, CSW has secured an extensive portfolio of mixed-use and multifamily properties. The company’s ongoing projects in the Austin area include the 338-unit Lírica, at 5119 East 7th Street, a 325-unit complex at 3525 Far West Boulevard, and the 260-unit Riverline at Kyle Crossing, which will feature 22,000 square feet of retail space.

Despite strong demand for housing in Texas, the rental market in Austin is oversupplied. Nearly 16,000 units were completed in Austin during the first three quarters of last year, leading to a nearly 5 percent year-over-year decline in rents to an average of $1,614, according to Yardi Matrix.

Austin submarket accounted for nine of the top 15 markets with the largest rent cuts last year, according to Jay Parsons, formerly of Madera Residential. Southeast Austin saw the sharpest drop, with rents falling 12.8 percent.

— Andrew Terrell