ABOVE: A rendering with an aerial perspective of Urban East. Courtesy of River City Capital Partners
Proposed Urban East mixed-use project moving ahead quickly thanks, in part, to new Opportunity Zone incentives; meet the team at River City Capital Partners
One of the best aspects of real estate reporting is discovering the next successful locally-based development company. The barrier to entry in this sector is formidable in any market, but here especially.
Think of all the challenging variables — cost of land, cost of labor, understanding local development regulations, accessing large amounts of capital to get going. You get the point.
That’s why my hat’s off to companies like Cielo Property Group and PSW Homes, which started slowly with two or three partners and now have evolved into impressive enterprises. Of course Endeavor Real Estate Group is the poster pin-up for Austin development success.
So which company is next? Perhaps River City Capital Partners. I met with the principals this week — Peter Kehle and Cory Older — to find out more about them and their upcoming project: Urban Eastat 6400 E. Riverside Drive. There’s a nifty bit of business intelligence toward the end of this story that explains why investors are particularly keen on this particular development, which will include about 350 apartments; 90,000 square feet of office space and 20,000 square feet of retail and restaurant space.
“The retail and restaurant is really important,” Older said.
Kehle and Older said they are well aware that many new apartment projects with auxiliary retail have struggled to fill commercial spaces, so they researched the matter in-depth.
“Two issues surfaced over and over,” Older said. “Not enough parking and no back-of-house service area.”
As such the Urban East project will include a stand-alone retail building and a design that facilitates behind-the-counter needs — plus plenty of adjacent surface parking.
Here is the development team River City Capital Partners has assembled:
Multifamily architects: Davies Collaborative
Retail/commercial architect: Urban Foundry
Landscape architect: Blu Fish Collaborative
Civil engineer: Prossner & Associates and Jamison Civil Engineering
Mechanical, electrical and plumbing engineering: Nichols Engineering
Structural engineer: Leap Structures
Commercial brokerage team: St. Croix Capital Advisors
Negotiations are underway with a general contractor, but that tidbit will have to wait for a future update.