The mixed-use development previously called Velocity Crossing is now simply Velocity, a brand that speaks to the increased degree of open space being preserved alongside the new development.
By: Lisa Brown – Globe Street
AUSTIN, TX—A mixed-use project in southeast Austin that has already attracted an international manufacturer and an H-E-B grocery store is growing in size and scope. Construction will begin early next year on its next components.
The updates begin with the mixed-use development’s name, previously called Velocity Crossing, and now simply Velocity. This brand speaks to the increased degree of open space being preserved alongside the new development.
Architecture and planning firm Sasaki redesigned the land plan for the project’s remaining 314 acres, growing the concept to 7 million square feet, an increase of 1.5 million from its prior design. Now, the project will feature a total of 2,683 multifamily units and 2.9 million square feet of office, providing the opportunity for two large corporate campuses along with traditional office space.
It will also feature 585,000 square feet of flex industrial and creative office, 310,000 square feet of commercial use for retail, restaurants, a cinema and three hospitality sites, all surrounding a large central park. While this is not Austin’s largest project, it comes in as a strong contender after The Domain and Austin Green.
“Velocity is certainly one of a kind. In addition to being one of the largest mixed-use projects in the region, we believe our land plan is one of the strongest. We’re aiming to create a truly connected community-oriented project that appeals to current market conditions and the local community alike,” Doug Launius, principal with Marketplace Real Estate Group, tells GlobeSt.com.
Austin-based Marketplace Real Estate Group initially purchased the 390 acres located at the southwest corner of State Highway 71 and State Highway 130 in 2014 and recently added Texas-based Presidium Group as a joint venture partner. Velocity is in a federally designated Opportunity Zone, Austin’s Desired Development Zone and also a Triple Freeport Zone, which exempts businesses from paying taxes on inventory that leaves the state within 175 days.
Poised to break ground in early 2021, a 295-unit multifamily project Presidium Velocity will be followed shortly thereafter by 140,000 square feet of amenity space and creative office–featuring office space designed for incubating small businesses and creative types, restaurants, and health and wellness users. The project’s first phase roads will be complete later this year, focused around the forthcoming H-E-B to be located at the southeast corner of State Highway 71 and FM 973, with second phase roads breaking ground 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. Velocity’s inclusion in an Opportunity Zone has also attracted significant interest from both investment capital and companies seeking to locate within the development,” said Launius. “Our new partner enables us to be even more nimble as Velocity progresses.”
Launius and Marketplace’s founding principal Karl Koebel also notes the new land plan incorporates a 42-acre public park along Onion Creek and numerous open spaces including a 7-acre signature central park. The joint venture will make a hefty investment in parks, open space, trees, landscaping and creek preservation efforts. This will allow hiking and biking on the property, fishing and kayaking in Onion Creek. The updated master plan also incorporates approximately 8 miles of internal pedestrian trails that will connect with others along the eastern side of Travis County.
“Austinites have always felt passionately about preserving nature’s greatest gifts and our new land plan ensures Velocity’s natural treasures will thrive for generations to come,” Koebel said. “Our sense is that people appreciate breathing room now more than ever, and this site will have everything you could want within walking distance–including a place to get away from it all.”
The project, initially 390 acres, is currently comprised of 314 acres after sales to H-E-B in 2016 and Project Bluewave in 2018. Austin Community College also owns 124 acres adjacent to Velocity where it plans to build a regional workforce campus for 10,000 to 12,000 students for various kinds of technology programs focused on automotive, building construction, heating and air, welding and jewelry making.
“What excites me most about Velocity and its new vision is that the residents of Southeast Austin are on the cusp of having the kind of well-planned attainable mix of uses they’ve wanted for years,” says Margaret Gómez, Travis County commissioner. “Frankly, I can’t imagine the length of the line out of the door when H-E-B opens.”
Austin city mayor pro tem Delia Garza notes she appreciates the way the Velocity team has worked with the community.
“For years and years, residents of Southeast Austin have wanted new development that adds to their neighborhoods without negatively impacting them,” Garza said. “With Velocity, we are gaining housing, places of employment and hopefully a grocery store. The Velocity team has shown great care and concern for the local community and I’m grateful for their work to understand the community and their concerns.”
Austin’s overall office vacancy is at 10%, up from this time last year at 8.6%, due in part to the 609,000 square feet of vacant space delivered to the market so far in 2020—37.9% of the total 1.6 million square feet completed, according to a report by NAI Partners. Of the 7.7 million square feet currently under construction, 55.3% of that space is available for lease, says the report.