AUSTIN (Austin American-Statesman) – Large Austin projects set to begin construction are stalled because of the recession and frozen credit markets.
JMI Realty is ready to start work on the Hotel Van Zandt, a 327-room boutique hotel at the eastern edge of downtown on Red River and Davis, but cannot receive the financing to do so.
“We have lots of jobs ready to be created with this project, but until the banking environment improves, we will be on hold,” said JMI Senior Vice President Greg Clay.
In north Austin, Atlanta-based Novare Group and its local partner Andrews Urban are holding off on a 28-story tower that would house condominiums and the 145-room Twelve Hotel at Endeavor Real Estate Group's Domain. The developers say the delay of the $100 million-plus project stems from the postponement of three major retail projects at the mixed-use Domain. These include new stores for Nordstrom, Saks Fifth Avenue and Whole Foods Market Inc.
Under the revised timetable, Nordstrom and Saks, as well as 490 apartments, 450,000 sf of additional retail space and 125,000 sf of offices, would not open until fall 2012. The Whole Foods store opening would be pushed back to May 2012, about a year later than planned.
