Future of Solaris Apartments, 1516 Burton? Best views of Downtown in Austin.

[mumu]

Solaris is 43 buildings on a 20 acre hill just off Riverside that has probably the most run down, crime infested apartment complex in the city. It's mostly affordable, tax-credit housing, but I've heard it has an expiration, but I don't know when.

At the same time, this hill has the best views of Downtown I've ever seen, from ground level. West Lake areas have nice views but they're farther out, 3-4 miles versus 1-2 miles from Solaris.

If it weren't for the tax credit that presumably ties up the property I'd think this site would be redeveloped with dozens of staggered 4-6 story type buildings up the hill its on. It's less than half a mile from the Oracle complex under construction as well.

Does anyone know more about this location and its future?

[austlar1]

I have the impression that most of the large apartment complexes on the hillside south of Riverside in that area are pretty run down, often with large families or extended families sharing one and two bedroom units. There is substantial drug trafficking in many of the parking lots of these complexes, so there is also probably a large gang presence. The entire hillside seems ripe for redevelopment at some point in the near future. I guess the question is what developer is going to be willing to take the plunge. There is likely to be a lot of political fallout regarding the "gentrification" or redevelopment of that area. The poor people in those apartments need a place to live.

[The ATX]

At some point an affordable housing option like this becomes rundown and a public safety issue due to crime and needs to go. When that line is crossed will always be open to debate.
I know someone who moved from here earlier this year because it wasn't safe - especially at night. They had been living there for many years, and it has been going downhill fast. Some apartments in the area are prostitution and drug dens.

[JACKinBeantown]

This is a good example of why it's good to give developers incentives to include affordable housing units in new developments. It gives people with low incomes a decent place to live without creating an entire neighborhood of low-income housing. That keeps people of all income levels living in the same area (no segregation) and it also gives the police "emotional" incentive (or lack of excuse otherwise) to patrol the neighborhood properly, and people on the higher floors paying higher rent will call the police any time they see a drug deal or whatever crime going on, which helps keep the area nice for the majority of low-income people who aren't committing crimes. It's a win-win.

[gabetx]

Originally Posted by JACKinBeantown

This is a good example of why it's good to give developers incentives to include affordable housing units in new developments. It gives people with low incomes a decent place to live without creating an entire neighborhood of low-income housing. That keeps people of all income levels living in the same area (no segregation) and it also gives the police "emotional" incentive (or lack of excuse otherwise) to patrol the neighborhood properly, and people on the higher floors paying higher rent will call the police any time they see a drug deal or whatever crime going on, which helps keep the area nice for the majority of low-income people who aren't committing crimes. It's a win-win.

In theory it seems like it would work. However, the officers in that area and on those shifts are extremely short staffed and are too busy with other higher priority calls to deal with drug deals and prostitution. That is why it thrives in that area. The same officers that work Burton and Woodland also answer calls on S Congress, Montopolis, and in Del Valle. The drug calls normally hold for an hour or just get general broadcasted. It is a large spread out area with very few officers. After 1am, Between S. Congress, Ben White, Town Lake, and Del Valle, it is normal for there to only be six to eight officers patrolling and answer calls for service in that sector. All of East and Southeast Austin are extremely short staffed.

But the views from that area are amazing, it is extremely centrally located, and it is a short trip to the airport. The E. Riverside Dr. area is bound to explode with development.

[drummer]

Originally Posted by gabetx

The E. Riverside Dr. area is bound to explode with development.

Yep, sooner than later.

[We vs us]

I assume that anything in E Riverside that isn't nailed down is ripe for flipping, including Solaris.

I also assume that speculators are going to try to bundle as much as possible into larger tracts so that institutional investors can come in do as much campus-style redevelopment as possible.

In other words, I'm betting on more Catalyst-style plays in that area, especially if Catalyst starts to get real traction with redevelopment.

[urbancore]

Originally Posted by We vs us

I assume that anything in E Riverside that isn't nailed down is ripe for flipping, including Solaris.

I've looked at a few of these for clients. The price the seller's want is based on the rent roll/cap rate (as it should be), and not the dirt value.

I think they will stay the way they are till the price comes in line with dirt value.

Owner could of course do it themselves, but then they lose out on a ton of cash flow and need to have access to a ton of credit.

It's tough.