East Austin Development on the Rise: Lofts sell quickly and developer appreciative of City S.M.A.R.T.Housing^TM Initiative

Austin, TX: City and community leaders gathered today to celebrate the success of Pedernales Lofts, a S.M.A.R.T.Housing^TM development located in East Austin. The complex will be home to Musicians, Artists, Teachers, and others who call East Austin home.

These individuals along with more than 75 others are owners at the Pedernales Lofts and will soon either move their homes or their businesses to this mixed-use development in East Austin. Designed by co-developer and local architect Richard deVargas, the lofts are one mile east of I35 and provide reasonably priced home ownership for people who want to move beyond rent payments and still live close to downtown. DeVargas has created a green, environmentally friendly project. The Pedernales Lofts are only 25% into construction, yet the project is over 90% sold-out. East Austin’s Big Red Sun is creating the public plaza within the Pedernales. Residents will have wireless access in the plaza, which is adjacent to the on-site café.

S.M.A.R.T.Housing^TM (Safe, Mixed Income, Accessible, Reasonably Priced and Transit Oriented) stimulates the creation of reasonably priced homes in Austin. It provides development fee waivers for projects that meet all S.M.A.R.T.Housing^TM standards, including at least 10 percent of the units meeting the "reasonably priced" standard by serving families at or below 80 percent of the Austin Area Median Family Income (about $56,900 for a family of four). In addition, the City provides faster subdivision and site plan reviews, expedited zoning, and advocacy through the course of the development process. The S.M.A.R.T.Housing^TM Development Review Team works proactively with developers to secure approvals and to resolve any conflicts with other City departments.

Of the original 105 lofts, ten are left. "We have only one commercial space available which means that thirteen new, small businesses will now be calling East Austin their home" said Larry Warshaw, co-developer of the Pedernales. "As rent payments have gone up on South Congress and other areas, more small business owners see the advantage of buying their own space in East Austin" said Warshaw.

The nine residential lofts still available are priced at $125,000 and $184,000 depending on their size.

"Over the past ten or so years, an important group of residents has been priced out of the downtown area. Musicians, artists, young professionals, teachers, government employees and others want to be downtown, but cannot afford the inflated prices of Hyde Park or Travis Heights, let alone a million dollar loft downtown. Our goal from the start has been to make downtown living affordable for this group" said Warshaw.

"Not only have we found a market, but we are also finding more and more that a move to east Austin is many peoples' preference," said Perry Lorenz, a partner in the Pedernales. "East Austin has what South Austin used to have. The restaurants are locally owned. The coffee shops are laid-back and housing is still affordable. The people in the Pedernales truly represent Austin's creative and cultural diversity."

The City of Austin is committed to compliance with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973, as amended. Reasonable modifications and equal access to communications will be provided upon request. Please call 974-3100 (voice) or 974-3102 (TDD) for assistance. This project is made possible by funding from HUD through the City of Austin.

CONTACT: Julie Beggs, (512) 974-3121 (voice)