Work starts on project near airport
Construction has kicked off for a 307-unit apartment project in Southeast Austin, the first phase of a large mixed-use development planned along Texas 71 just east of Austin-Bergstrom International Airport.
A second apartment complex, along with retail and restaurant offerings, will follow in the development, called Velocity, at the southwest corner of Texas 71 and the Texas 130 toll road. Velocity, about 8 miles from downtown, has approvals for 7 million square feet of space with a mix of uses.
The flexible nature of the zoning approvals means that the developer, Presidium, can respond to market demand in terms of specific uses that get built. Future components of the project are in the design stages.
The four-story apartment complex at which ground was just broken has not yet been named. It is expected to be completed by mid-2025.
Presidium, based in Austin and Dallas, also is developing River Park, a large mixed-use project to be built in phases over the next 10 to 20 years off East Riverside Drive and Wickersham Lane. Plans for the project’s 109 acres call for housing, retail, office, hotel and entertainment uses. A 252-unit apartment complex has been torn down to make way for River Park’s first phase.
At Velocity, the 314-acre mixed-use development is expected to add thousands of homes, retail services, hotels and nearly 100 acres of green space in a fast-growing part of Central Texas and the Del Valle area in southeastern Travis County.
Velocity is not far from Tesla Inc.’s gigafactory, which is on the north side of Texas 71 and just west of the toll road. Even before Tesla, the Del Valle area was experiencing a surge of commercial and residential growth that continues to add thousands of rooftops — from apartments to large masterplanned communities — and Tesla has further fanned the flames of development.
Projects destined for the area include an H-E-B grocery store and an Austin Community College campus.
H-E-B bought its 17.2acre parcel at the southeast corner of FM 973 and Texas 71 in late 2016. The land was part of the original 390-acre Velocity tract, formerly called Velocity Crossing. Nearby, in a 2018 land sale of just over 50 acres, Chanel built a manufacturing facility where it makes skin care products. Chanel bought the land, also part of the original 390-acre Velocity acreage, through a holding company.
“With Tesla to the north, Onion Creek parkland amenities flanking the east, the new ACC campus as our neighbor to the south, and the airport to our west, we feel this location will be the key node for the Southeast Austin and Del Valle community for years to come,” said Dustin Mattiza, executive vice president of development for Presidium.
The apartments will range from studios to three-bedroom units, with sizes from 375 square feet to 1,400 square feet. They will have stainless steel appliances, “smart” technology features, high ceilings, walk-in closets and other amenities.
There will be a fourthfloor lounge with a kitchen and bar, pool tables, shuffleboard and an indoor-outdoor fireplace. Other amenities will include a co-working lounge, a pool, a dog park, a gym and yoga studio, a volleyball court, and two pickleball courts.
The lounge will look toward Onion Creek and a 50-acre preserve with heritage trees. Sidewalks and trails around Velocity will connect to nearby trails and parks.
“We're thrilled to be at the heart of Southeast Austin, committed to providing essential retail, restaurants, and lifestyle amenities, as well as a variety of residential options to the community,” said Kenley Reed, who leads Velocity's master plan and mixed-use components.
Velocity initially consisted of 390 acres. It's now 314 acres, after the sales to the region's dominant grocer, H-E-B, in 2016 and the Chanel cosmetics manufacturing plant in 2018.
Nearby, ACC passed $200 million in bonds to build its Advanced Manufacturing & Skilled Trades campus in 2022. The site,
Projects destined for the area include an H-E-B grocery store and an Austin Community College campus.
which borders the southwestern section of Velocity, will serve 10,000 to 12,000 students. The Texas Division of Emergency Management recently announced it has started construction on a new $370 million headquarters that will be coupled with a new State Emergency Operations Center just south of Velocity.