By: Shonda Novak – Austin-American Statesman
Developers have unveiled an expanded vision for Velocity Crossing, which is being rebranded as Velocity as part of a new iteration for the large mixed-use project in Southeast Austin.
Velocity already has attracted a cosmetics manufacturing facility on just over 50 acres, as well as plans for an H-E-B grocery store. H-E-B bought its 17.2-acre tract at the southeast corner of FM 973 and Texas 71 in late 2016.
Adjacent to Velocity, Austin Community College owns 124 acres, where the community college district plans to build a regional workforce center for 10,000 to 12,000 students.
Located east of Austin-Bergstrom International Airport, Velocity is taking shape in a part of the region that is being transformed with new commercial and residential development.
Construction is due to begin early next year on Velocity’s next components, beginning with an apartment complex with 295 units.
Austin-based Marketplace Real Estate Group purchased Velocity’s original 390 acres at the southwest corner of Texas 71 and the Texas 130 tollway in 2014. Recently, Marketplace added Presidium Group as a joint venture partner. Dallas-based Presidium is a major landowner and developer in Austin’s rapidly redeveloping East Riverside corridor.
Architecture and planning firm Sasaki redesigned the land plan for Velocity’s remaining 314 acres, growing the concept to 7 million square feet, which is 1.5 million square feet more than its previous design. The project now will include: 2,683 apartment units; 2.9 million square feet of office space providing the opportunity for two, large corporate campuses along with traditional office space; 585,000 square feet of flexible industrial and creative office space; 310,000 square feet of commercial use for retail, restaurants and a cinema; and three hotel sites.
The 295-unit apartment complex breaking ground next year will be called Presidium Velocity. It will be followed soon after by 140,000 square feet of amenity space and office space.
The first phase of roads for the project are expected to be completed this year, focused around the H-E-B site. The second phase of road construction is due to start in the first quarter of next year.
“We’ve done our best to update the land plan in a way that respects community wishes and market demand,” Doug Launius, a principal with Marketplace Real Estate Group, said in a written statement.
Leslie Sweet, H-E-B’s director of public affairs, said Monday that the company “continues to explore options for a future store in Southeast Austin in hopes of one day building a store there.”
“We currently does not have an update on potential timing and there are no plans to build an H-E-B in Southeast Austin in the immediate future,” Sweet wrote in an email. “H-E-B will continue to monitor market demographics and pursue suitable options for potential future development and provide updates as they develop.”
Launius said that Velocity’s location in a federally designated Opportunity Zone, offering investors and companies potential significant tax advantages, has helped the project attract interest from both investment capital and companies seeking to locate within the development.
In a 2018 interview, Charles Heimsath, a longtime real estate consultant, said eastern Travis County is poised for continued growth.
“As land prices increase and land availability diminishes west of Interstate 35, the eastern part of Travis County is becoming more attractive,” said Heimsath, president of Capitol Market Research. “I anticipate much more development and growing demand for housing and commercial activity in the Texas 130 corridor over the next few years.”
Launius and Marketplace founding principal Karl Koebel said that in addition to the public park, Velocity will include a number of open spaces, trees, landscaping and creek preservation efforts. The updated master plan also incorporates about 8 miles of pedestrian trails that will connect with others along the eastern side of Travis County.
Austin City Mayor Pro Tem Delia Garza credited the Velocity team for working with the neighboring community and hearing its concerns.
“For years and years, residents of Southeast Austin have wanted new development that adds to their neighborhoods without negatively impacting them,” Garza said in a written statement. “With Velocity, we are gaining housing, places of employment and hopefully, a grocery store.”