AUSTIN, Texas — The Capital of Texas is making room for a 1,022 feet skyline that’s to include a public space for eatery, luxury apartments, Class-A office space and the 1 Hotel Austin — with an expectancy of completion in late 2026.
Development partners Lincoln Property Company and Kairoi Residential revealed Waterline to be a 74-story mixed-use high-rise, underway in downtown Austin on Sept. 6, 2022. Both partners are based in Texas, with LPC being based in Dallas and Kairoi headquarted in San Antonio. The Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, is the major contributor to the project.
“We are pleased to be increasing our portfolio exposure to high conviction markets and green assets in one of the fastest growing cities in the United States,” said Carole Guérin, managing director for real estate at PSP Investments. “This investment provides significant upside potential as the city of Austin continues its expansion to become a top-tier U.S. market that offers high quality of life, a supportive business environment, exciting employment opportunities and a hotbed for technology and innovation.”
Waterline’s location at 98 Red River St. will cover 3.3 acres near the intersection of Waller Creek and Lady Bird Lake. With 352 luxury apartment homes, 700,000 square feet of office space and the 251-room 1 Hotel Austin, the development team is after a LEED Gold certification to have a healthy, highly efficient, and cost-saving green building. According to development partners, Waterline will be the first Texas location for the global sustainability-focused hospitality and lifestyle brand of SH Hotel Resorts.
A global architecture firm, Kohn Pedersen Fox, will design floor-to-ceiling windows, warm textures and native stone at the Waterline. The firm has done work in New York City for 55 Hudson Yards and One Vanderbilt towers.
“To achieve a successful mix of program and planning ideas, we leveraged the unique character of the waterfront and the Rainey District,” said Andrew Klare, KPF director. “Sculptural columns draw inspiration from sacred species of trees in Austin, while native stones and landscaping speak to the character of the creek across the site to Red River Street. With the spirit of the place set, mixed-use program requirements needed to be thoughtfully placed to create hierarchy of space and activity.”
The construction loan for the project was footed by Blackstone Mortgage Trust, Inc. (BXMT)
“We continue to see strong demand for new, best-in-class residential, office and hospitality assets in high growth markets like Austin and are excited to support this trophy, mixed use development that will make a meaningful contribution to the community as well as the Austin skyline,” said Katie Keenan, Chief Executive Officer of BXMT. “We look forward to continuing to lend on low-leverage, high-quality projects and serving as a partner to well-capitalized, experienced sponsors like LPC, Kairoi, and PSP Investments.”
The 24,000 square feet ground floor of the building will be for restaurant space that affords visitors a view over Waller Creek and the Waterloo Greenway, separated by a floodplain forest.
1 Hotel Austin will hold the next 13 floors, including a ballroom and meeting spaces on the 14th floor and a rooftop pool with food and beverage service on the 16th floor.
The section for office space will have 27 stories with a 14th-floor amenity deck, encompassing 24,000 square feet of outdoor space with a bar and lounge, indoor meeting spaces and a prep kitchen for special occasions.
Also, office tenants will have access to a 7,000-square foot fitness center on the second floor featuring cardio equipment and weights along with a yoga and dance studio.
The top 33 stories will contain upscale residential homes, offering residential access to two pools on the 41st floor along with a lounge, bar, kitchen and co-working space. A movement studio, workout studio and steam room will be located one floor above along with soaking tubs, hammocks, a BBQ pit and a communal dining area.
“Waterline will offer a truly unique experience with unrivaled views, world-class amenities and a thoughtful design that connects the building’s interior with the project’s unique natural surroundings throughout the building,” said Michael Lynd Jr., CEO of Kairoi Residential. “We’re thrilled to introduce Austin’s next iconic project.”