Welcome to Ultraground. We send you data on new deals.
District: 1 | Northeast Austin
343-Unit Workforce HFC | 5525 E 51st St | Approved ③
District: 3 | Holly
330-Unit Mixed-use | 518 N Pleasant Valley Rd & 507 Calles St | Approved ③
District: 9 | Central Austin
80-Unit Mixed-use | 1103 West 24th St | Approved ③
District: 9 | Northeast Austin
90-Unit Mixed-use | 2002 Manor Rd | Approved ③
District: 1 & 9 | Northeast Austin
0.68-Acre Mixed-use | 2967 Manor Rd | Postponed
District: 1 | MLK-183
45-Unit Multifamily | 4108 Tannehill Ln | Approved ③
District: 1 | East MLK
50-Unit Multifamily | 1145 Gunter St | Postponed
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2025 Ultraground Update
The regulatory environment for development in Central Texas continues to evolve, with more complexity everywhere from approvals to capitalization. Our analysis is evolving too.
Starting February 17, we're releasing enhanced data and analysis. Deals are now routinely innovating with financing structures, layered tax exemption strategies, and creative approaches to community benefits - requiring deeper analysis and real-time tracking.
We're introducing Austin All-In, More Deals March edition, running through February 28. This comprehensive package helps teams invest where Central Texas is going, with expanded coverage across 40+ municipalities.
Austin All-In, MDM includes:
-Detailed financial and deal structure analysis.
-Full entitlement coverage starting at pre-application.
-Real-time tracking data via editable cloud Excel.
-Searchable deal library and unlimited customer support.
-No seat limits for your team.
-Automatic access to post-entitlement data (More Deals March only)
More information to come. For partnership opportunities, reach out directly:
[email protected] (512) 655-3204
Thanks for trusting us with your most valuable resource - your time.
-Frank
Frank Conrad, AIA
Founder/CEO at Ultraground
DISTRICT: 1
FiveOne 5525 E 51st St
Northeast Austin | 4 Acres | 343 Units | Reading: ① - ② - ③ | Approved
City Council 1/30/25
CS-MU-V-CO-NP → CS-MU-V-CO-DB90-NP | Reading: ① - ② - ③
Ledgestone Development Group and the Strategic Housing Finance Corporation of Travis County (SHFC) are partnering on a 343-unit workforce housing deal in Northeast Austin. The $92.21M project secured updated entitlements through Austin's new DB90 density bonus program, replacing the previously invalidated VMU2 zoning and maintaining the project's viability.
The January 2025 rezoning approval (CS-MU-V-CO-DB90-NP) allows maximum height of 90 feet and provides modified compatibility standards, enabling efficient development of a mixed-income community with ground-floor retail. The project maintains market-responsive unit sizing with 224 two-bedrooms (65%), 77 one-bedrooms (22%), and 42 three-bedrooms (12%), while delivering significant affordability. The workforce income structure layers affordability from 120% AMI down to 50% AMI, breaking through the typical bottom 60% AMI threshold for workforce HFCs in Texas.
U/ Finance
The partnership structure generates $8.34M in revenue for SHFC over a 15-year term, split between earned fees ($4.52M) and participation in cash flow and refinancing ($3.83M). The tax abatement structure yields $22.2M in savings over the term while supporting deeper affordability than typical workforce housing projects.
Our detailed financial analysis for Austin All-In subscribers breaks down the specific fee arrangements, including management fees, development fee sharing, and ongoing payments tied to property tax value - all with built-in escalators that help maintain long-term viability.
The deal structure includes several participation mechanisms that subscribers can review in detail, from construction-period tax savings to operating cash flow shares and disposition proceeds. Our full analysis provides exact percentages and projected values for each revenue stream over the 15-year term. Data on these deals is delivered in full reports and editable spreasheets.
A key innovation in the financial structure is its use of tax abatement to support debt coverage ratios. Without abatement, DCRs would fall below 1.15 through year 7, making traditional financing impossible. With abatement in place, the DCR starts at 1.32 in year 4 and improves to 1.83 by year 15, providing strong debt service coverage while maintaining affordability.
The SHFC Board's comfort with this standardized approach was evident in their September 2024 discussion, which focused more on operational concerns than financial structure. The public benefit analysis shows 49% of the $22.2M in tax savings flowing directly to rental discounts. When including all fees and benefits (detailed in our subscriber analysis), the project achieves an 87% public benefit ratio, rising to 91.9% after adjustments for design quality, public worker preference, decarbonization features, and service access.
Developer/Owner: Ledgestone Development Group, Craig Alter Phone: (512) 956-5432 Email: [email protected] LinkedIn
Public Partner: Strategic Housing Finance Corporation of Travis County (SHFC), Dianna Grey Phone: (512) 926-1298 Email: [email protected] LinkedIn
Staff Report: C14-2024-0149
DISTRICT: 3
518 N Pleasant Valley Road 518 N Pleasant Valley Rd & 507 Calles St
Holly | 3.81 Acres | 330 Units | Reading: ① - ② - ③ | Approved
City Council 1/30/25
CS-MU-V-CO-NP → CS-MU-V-DB90-NP | Reading: ① - ② - ③
Los Angeles-based CIM Group, through their SVP Shaul Kuba, moved to secure the new DB90 entitlements (C14-2024-0145) to maintain their development rights for the 3.81-acre site at 518 N Pleasant Valley.
The initial February 2024 approval (C14-2023-0111) granted CS-MU-V-CO-NP zoning. However, in December 2023, three key housing ordinances were invalidated by court ruling, including the "VMU2" vertical mixed-use bonus program. In response, Austin enacted Ordinance No. 20240229-073 in March 2024, creating the new "DB90" density bonus district as a replacement mechanism.
The DB90 program allows them to build up to 90 feet with modified site development regulations in exchange for affordable housing commitments.
The proposed 330-unit mixed-use project sits strategically near a planned Capital Metro Green Line station. The development must provide either 10% of units at 50% MFI or 12% at 60% MFI for rentals (40-year term), or meet ownership affordability requirements. Ground floor activation requirements mandate 75% commercial uses along Pleasant Valley Road.
Transportation analysis shows the development increasing daily trips from 645 to 1,528. The project requires a 50-foot ROW dedication along Pleasant Valley Road. Armbrust & Brown's Richard Suttle is managing entitlements, with the case approved on consent by City Council on January 30, 2025.
Owner: CIM Group, Shaul Kuba Phone (Office): (323) 860-4900 Email: [email protected]
Attorney: Armbrust & Brown PLLC, Richard T. Suttle, Jr. Phone: (512) 435-2300 Kelly Wright Phone: (512) 435-2364
Staff Report: C14-2023-0111
Eleven03 1103 West 24th St
Central Austin (West University) | 0.69 Acres | 80 Units | Reading: ① - ② - ③ | Approved
City Council 1/30/25
GR-MU-V-NP → GR-MU-V-DB90-NP | Reading: ① - ② - ③
OGH's has secured final approval for Eleven03, an 80-unit DB90 deal near UT Austin. The 0.69-acre site at 1103 West 24th Street will be redeveloped from a vacant 30,000 SF office building into a six-story residential building with two levels of below-grade parking providing 105 spaces.
Samuel Owen and OGH successfully rezoned the property from GR-MU-V-NP to GR-MU-V-DB90-NP, gaining an additional 30 feet of height above the base 60-foot limit in exchange for affordability commitments. The unit mix spans 10 one-bedroom, 19 two-bedroom, 20 three-bedroom, and 31 four-bedroom units, with affordability requirements mandating either 12% of units at 60% MFI or 10% at 50% MFI for 40 years.
The entitlement process, spanning September 2024 to January 2025, navigated significant community opposition focused on broader DB90 policy concerns rather than project-specific issues. The development team secured unanimous Planning Commission approval followed by a 9-0 first reading City Council vote in November, despite vocal resistance from housing equity advocates concerned about displacement impacts in East Austin neighborhoods.
A key strategic win was obtaining a 100% modification to the ground floor commercial requirement by demonstrating site constraints including a significant grade differential and access limitations. The project's location 0.17 miles from the Lamar Boulevard activity corridor and 0.5 miles from UT Austin strengthens its market fundamentals.
Planning Commission 9/26/24
GR-MU-V-NP → GR-MU-V-DB90-NP | Postponed
Community opposition emerged during earlier hearings, particularly regarding the DB90 designation. Jenny Grayson, representing McKinley Heights Neighborhood Association, cautioned against precedent-setting.
‟DB 60, DB 70, DB 80, anything less than DB 90, are supposedly in the works. So don't set the precedent today and displace residents who have been in their homes for generations.
‟All DB90 cases should be postponed. And I'm not your wasting your time. Frankly, the city has been wasting my time. It's been wasting probably every person in this room's time for the better part of two years.
Developer/Owner: OGH, Samuel E Owen Phone: (214) 668-4751 Email: [email protected] LinkedIn
Staff Report: C14-2024-0095
DISTRICT: 9
2002 Manor Road 2002 Manor Rd
Northeast Austin | 0.66 Acres | 90 Units | Reading: ① - ② - ③ | Approved
City Council 1/30/25
CS-V-CO-NP → CS-DB90-CO-NP | Reading: ① - ② - ③
The Colonnetta Family Partnership has secured DB90 rezoning approval for a 0.66-acre site at 2002 Manor Road in Austin's Upper Boggy Creek neighborhood, demonstrating an exemplary approach to community engagement in corridor densification. The project, approved in January 2025, will transform the current Hoover's Cooking restaurant site into a mixed-use development with 90 multifamily units, 4,000 SF of restaurant space, and 4,000 SF of retail.
The development program underwent strategic refinement during the entitlement process to optimize both density and community acceptance. The initial April 2024 submission proposed 150 multifamily units with 10,400 SF of commercial space - a density of 227 units per acre. Through careful calibration, the final program reduced to 90 units while maintaining 8,000 SF of commercial space, achieving 136 units per acre. This optimization balanced development economics with neighborhood compatibility, particularly regarding traffic impacts, while preserving the project's essential mixed-use character and financial viability - a crucial factor in securing stakeholder support.
The entitlement achievement is particularly noteworthy for garnering support from typically development-skeptical neighborhood leaders. The Cherrywood Neighborhood Association, through Chair Jim Walker, endorsed the project after negotiating a restrictive covenant - a strategic compromise that helped secure unanimous Planning Commission approval (12-0) and subsequent City Council approval. Even more telling, Girard Kinney, the Founding Chair of the Cherrywood Neighborhood Association, characterized the project as setting a positive precedent for the entire Manor Road corridor's development pattern.
‟This is an exciting opportunity because this may set the tone for the entire Manor Road corridor, which includes, of course, Blackland on the south side. It also includes Austin Heights neighborhood, all the way to Airport Boulevard.
‟We have a restrictive covenant that's been signed and executed. And with that we are happy to support this rezoning.
The rezoning upzones the site from CS-V-CO-NP to CS-V-DB90-CO-NP under Austin's new density bonus program (Ordinance 20240229-073, March 2024), allowing a height increase from 40 to 90 feet. The affordability component requires either 12% of units at 60% MFI or 10% of units at 50% MFI for 40 years - a structure that appears to have resonated with community stakeholders.
Development parameters include maintaining existing conditional overlays while removing the previous 40-foot height restriction.
Owner: Colonetta Family Partnership, Michael A. Colonnetta Phone: (512) 496-8457
Staff Report: C14-2024-0077
DISTRICT: 1 & 9
2967 Manor Road Revision 2967 Manor Rd
Northeast Austin | 0.68 Acres | Postponed
City Council 1/30/25
TOD-NP→ CS-DB90-NP | Postponed
The 2967 Manor Road rezoning case represents the first potential removal of property from Austin's MLK TOD Station Area Plan since its 2009 adoption. The 0.68-acre site, developed with a 4,000-square-foot auto repair shop, seeks rezoning from TOD-NP to CS-DB90-NP to enable higher-density residential development.
The developer, 2967 Manor AGV LLC represented by Thrower Design, proposes utilizing Austin's density bonus program (DB90) instead of the TOD's existing entitlements. Staff supports this approach, noting the current TOD zoning lacks affordability incentives while DB90 would require income-restricted units near high-frequency transit.
The City Council agenda listed this case for January 30th but staff postponed it to March 6th, 2025, allowing additional time for community engagement beyond the Planning Commission's timeline.
‟Without having proper public participation, it's really frustrating for folks to know that something's gonna be next to their house, blocking out their garden, their solar panels, the life that they've been living.
Planning Commission 1/28/25
TOD-NP→ CS-DB90-NP | Postponed
The January 28th Planning Commission meeting revealed a split between commissioners prioritizing quick action versus those favoring extended community engagement. Commissioner Grayson Cox raised concerns about setting a precedent for TOD removals, while Commissioner Danielle Skidmore argued for maintaining momentum.
‟I just want to point out that you're saying yes, we're setting a precedent, but don't worry because we don't always have to do this even though we're setting a precedent with this case. That's a little concerning to me.
‟There's no better way to keep the conversation moving than to have a hard deadline.
Neighborhood feedback centered on traffic and compatibility. Longtime resident Steve Hunt described the Manor-Airport intersection as "almost comically chaotic," while property owner Mark Hilton argued the proposed scale "looks like it belongs at the Domain." However, some residents like Marty Combs supported increased density to enable ground-floor retail and reduce car dependency.
The timing proved contentious, with Cherrywood Neighborhood Association Chair Jim Walker requesting a longer delay.
‟We would like more time, the 30 days to February 25th, so that we ensure the most impacted residents are aware of the implications of a DB90 case in this location. This is a first carve out from the MLK TOD. That's a precedent that I think we need from a planning point of view needs a little bit more weight, a little bit more time, a little bit more iterative conversation.
The commission ultimately voted 7-3 with one abstention to postpone to February 11th instead.
The case's unique aspects include its location between two major activity centers (MLK Station and Mueller), proximity to two MetroRapid routes, and Staff's argument that affordable units near transit provide "deeper affordability" by reducing transportation costs. The applicant has also requested a waiver of ground-floor commercial requirements due to uncertain future right-of-way plans.
Developer/Owner: Austin Growth Ventures, Danny Walker Phone: (713) 213-8495 Email: [email protected]
Staff Report: C14-2024-0107
DISTRICT: 1
Tannehill 4108 Tannehill Ln
MLK-183 | 1.39 Acres | 45 Units | Reading: ① - ② - ③ | Approved
City Council 1/30/25
SF-3-NP → MF-3-NP | Reading: ① - ③ - ③
Mexico-based Coma Rey Inc., led by Jose Eduardo Esper Ferrigno, secured multifamily zoning approval for a 1.398-acre site in East Austin's rapidly evolving Tannehill Lane corridor.
Three takeaways stand out:
First, the entitlement strategy leveraged a crucial technical detail: the existing Mixed Residential future land use designation eliminated the need for a Neighborhood Plan Amendment. This significantly streamlined the approval process, enabling a four-month timeline in a jurisdiction known for complex entitlements. The site's designation effectively prevalidated higher density, making this an instructive case study in site selection efficiency.
Second, the development secured multifamily zoning without affordability requirements or density bonuses - increasingly rare in Austin's regulatory environment. The MF-3-NP zoning allows considerable flexibility in unit mix and pricing strategy, while the compatibility standards (40-60 foot height limits based on proximity to single-family zones) still permit efficient site utilization. This regulatory outcome preserves maximum operational flexibility for future development phases.
Third, the location offers a compelling market positioning opportunity: the site sits within 2,000 feet of Highway 183 with direct MLK Boulevard access, yet benefits from established residential infrastructure including complete sidewalks and transit service. Recent upzoning precedents in the immediate area (multiple SF-3-NP to SF-6-NP conversions) suggest strong momentum toward density, while the Greater Mount Zion Church parking lot provides a permanent buffer from commercial uses - a rare combination of access and protection in a rapidly appreciating East Austin corridor.
Developer/Owner: Coma Rey, Inc., Jose Eduardo Esper Ferrigno Phone (Mexico): +52 1 55 2270 0100 Email: [email protected] LinkedIn
Staff Report: C14-2024-0128 SR
DISTRICT: 1
Gunter Street Rezoning 1145 Gunter St
East MLK | 2.74 Acres | 50 Units | Postponed
City Council 1/30/25
SF-3-NP → MF-3-NP & SF-6-NP | Postponed
Owner and Broker Real International, led by Lynn L Yuan, initially proposed 149 units on 2.7 acres, but scaled back to 47-50 units after discovering their property wasn't already zoned for multifamily as they'd believed due to a city tool error.
The project was postponed to February 13, 2025, to allow for continued negotiations with neighbors.
Planning Commission 12/10/24
SF-3-NP → MF-3-NP & SF-6-NP | Approved
The Planning Commission's deliberations centered on density, traffic, and community opposition.
Commissioner Barrera-Ramirez questioned whether similar density could be achieved under single-family zoning.
‟There's no better way to keep the conversation moving than to have a hard deadline.
The developer's representative Nikelle Meade explained that even SF-6 zoning would only allow about 30 units, making MF-3 necessary for their 47-unit proposal with two and three-bedroom units.
Traffic impacts concerned both commissioners and neighbors. While the traffic analysis showed the streets could handle 149 units.
‟They've made a good faith effort. They're good on community benefits... and these are units that will house families.
The development's 1.7 parking spaces per unit and garage-focused design helped address these concerns.
Community opposition reached 29.5% in a valid petition. Neighbors like Miranda Waldron Curry detailed property maintenance issues under current ownership. However, the Owner's commitment to contribute $1,000 per unit to the East Austin Conservancy for displacement prevention and create a central pocket park preserving mature trees demonstrated good faith efforts to address community concerns.
The Planning Commission ultimately approved Staff's recommendation 12-0, supporting MF-3-CO-NP zoning with a 50-unit cap on the main parcel and SF-6-NP for 3605 Abbate Circle. Commissioner Phillips praised the "good faith effort" on community benefits and family-sized units.
Owner: Real International, Lynn L Yuan Phone: (512) 293-1856
Email: [email protected] LinkedIn
Staff Report: C14-2024-0109
Project Plans: C14-2024-0109 Plan
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