STONEY RIDGE MASTER-PLANNED INDUSTRIAL SITES TX-130, FM 973, and Elroy Roads, Austin, TX 78617 Located in the Opportunity Zone
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FOR SALE - STONEY RIDGE MASTER-PLANNED INDUSTRIAL SITES TX-130, FM 973, and Elroy Roads, Austin, TX 78617 Located in the opportunity zone. SITES SITES SITE LOCATION: There are several industrial sites located within FLOOD A portion is in the FEMA floodplain. the Stoney Ridge development. HAZARD: JURISDICTION: City of Austin UTILITIES: All Available – City of Austin PRICE: Pricing available upon request and dependent upon size, location, and delivery of infrastructure. Industrial zoning to be delivered ZONING: Cash is preferred. Seller would entertain a JV scenario. COMMENTS: There are a handful of industrial tracts and can TOPOGRAPHY: Some areas of the Property have topography be sized from 3 acres to 220 acres for the that is not ideally suited for developnent. property in its entirety. Light Industrial Zoning will be delivered. CONTACT Spence Collins Office: (512) 472-2100 [email protected] This property is presented subject to prior sale, change in price, or removal from the market without notice. All information shown in this brochure, while based upon information supplied by the owner and from other sources deemed to be reliable is not in any way warranted by McAllister & Associates or the owner of the property. 201 Barton Springs Road Austin, Texas 78704 Interested persons are encouraged to retain legal and technical consultants to advise them of any and all aspects of this property. This report is for your use as long as you (512)472-2100 FAX: (512)472-2905 have need of it, but at all times remains the property of McAllister & Associates. Under no circumstances is any of this report to be reproduced, copied or in any way duplicated without the express written consent of McAllister & Associates. THE TESLA EFFECT By Shonda Novak [email protected] Del Valle, an underdeveloped area of southeastern Travis County that had seen minimal commercial investment for decades, was already poised for growth. Grocery chain H-E-B is sniffing around an area badly in need of a grocery store. A Chanel subsidiary has a skin care products factory in the works in the area. Software company Zoho plans to build a headquarters nearby, employing hundreds. But with last month’s announcement that Tesla Inc., the worldwide darling of the electric automobile industry, would invest at least $1 billion in the area and employ 5,000 in manufacturing jobs, many are now wondering whether its so-called gigafactory will trigger a sea change to this often neglected area of Travis County. On 2,100 acres just off Texas 130, Tesla is already — in the words of one developer — “moving at the speed of Elon” Musk, as bulldozers move dirt to pave the way for the huge assembly plant. Work on the site comes after the county and Del Valle school officials approved a combined $60 million in local tax breaks for the Californiabased company run by billionaire Musk. Tesla’s arrival is expected to rev up development — bringing in jobs, retail options and more housing — in an area that historically has lacked employment centers and fundamental services. “No libraries, no community centers, no public spaces for families to enjoy, and the primary park is behind barbed wire fences,” said Travis County Commissioner Jeff Travillion, whose district covers a large part of the Del Valle area, including the Tesla site. Development in the area could transform a community whose residents are nearly twice as likely to be Black compared with Travis County as a whole. The area’s concentration of Latino families is also above average for the county. As in many communities of color, the household incomes lag those in areas with a larger percentage of whites. Within Del Valle Independent School District’s boundaries, the average median income is $20,000 less than Travis County at large, according to U.S. Census Bureau data. Travillion, like many others in the region, sees a huge upside to Tesla’s arrival. But the question for him is whether that growth can be managed in a way that not only builds wealth for Del Valle’s residents, but also creates a “whole community” with the amenities and services the area has long lacked. “I hope we can build sustainability while we are building the economic infrastructure for that area,” Travillion said. “I’m optimistic. It can lead this community to a thriving future, but we cannot forget our most vulnerable populations.” ‘Jet fuel’ for the area Musk has promised to make the new Tesla site at Texas 130 and Harold Green Road a “stunning” addition to the area, complete with publicly accessible hiking and biking trails and a boardwalk along the Colorado River. The planned 4.5-millionsquare- foot factory will make Tesla’s Cybertrucks and Model Y electric crossover utility vehicles. About 65% of those jobs will involve unskilled labor that doesn’t require a college degree, Tesla executives have told local officials. Tesla’s factory could open as soon as next year. Local developers and others predict it will be a juggernaut that will dramatically accelerate the commercial and residential growth already happening in the Del Valle area, as well as in nearby Manor and Colony Park. In recent years, Del Valle has seen new rooftops proliferate by the thousands, and tens of thousands more homes are proposed. But the growth the area has been seeing is nothing like what’s to come as Tesla primes the pump, local developers say. “What we believe is that Tesla and the ancillary companies that will follow them is like throwing gasoline on the fire,” said Doug Launius, who with business partner Karl Koebel leads Austinbased Marketplace Real Estate Group. “It’s already busy out here, but now with Tesla the growth is going to be exponentially faster.” Launius’ and Koebel’s company owns or controls 900 acres in southeastern Travis County. The area is home to Austin-Bergstrom International Airport; major highways such as Texas 71 and the Texas 130 toll road; the Del Valle school district; and the Circuit of the Americas racetrack. On a recent tour of the area, Launius reiterated what he told the Statesman in a 2018 interview: “Southeast Austin is going to explode.” Other developers familiar with the area agree, including Pete Dwyer, a developer in nearby Manor. Dwyer said the site chosen for the Tesla plant — previously home to a Martin Marietta sand and gravel mining site — has long been ripe for something with more impact on the area. “Saying nothing bad about the sand and gravel industry, because we pour a lot of concrete, but I think that for years, ever since we opened Austin-Bergstrom International Airport (in 1999), we have all been looking out our airplane windows at all the holes in the ground on this (Martin Marietta) site and thinking, ‘Yuck, I wish we could do something with that,’ and now it sounds like it will be a crown jewel,” Dwyer said. Ari Rastegar, founder and CEO of Rastegar Property Co., said the Del Valle area “already was growing massively, and this just threw jet fuel on the entire area.” Likewise, the Texas 130 corridor is undergoing a “massive resurgence,” he said. “We’ve already seen a plan for over 10,000 rooftops that are either going to be proposed or are in the process or the pipeline to go throughout that corridor,” Rastegar said. “We believe from recent activity that up and down 130 is going to be the industrial backbone of Austin.” AToyota-like impact? In 2003, Toyota announced it would begin building trucks on a 2,600-acre site south of San Antonio. Like Del Valle, the area surrounding that site was largely undeveloped, lacking investment and infrastructure. Seventeen years later, Toyota now employs 3,200 people at the facility, with an investment of $2.7 billion in the area. Related suppliers to the plant employ 4,000 more, providing jobs to semiskilled workers and offering opportunities for a career in manufacturing with above average wages for people who need only certification instead of extended college education. San Antonio Chamber of Commerce President Richard Perez was on the San Antonio City Council when Toyota signed its deal with local governments and the state of Texas that included incentives similar to those offered Tesla. “It really solidified the fact that manufacturing had a real place in San Antonio,” Perez said. “I have seen it in actual practice and the prestige it brings. It is real.” Perez said what set Toyota apart from other auto plants was the company’s decision to have tier-one suppliers — companies that produce auto parts used in the plant’s Toyota Tundras and Tacomas — on site. That set off a mad dash to locate at the southern San Antonio site. In the following years, warehouses and other related industrial sites flourished in the area. The same could happen in Del Valle, and many are already showing interest. Launius said the nearby Velocity development has 314 acres available, and some of the companies that do business with Tesla no doubt will come calling. “We’ve been contacted by companies all around the world that are interested in real estate around the Tesla site for investment and/or future development,” Launius said. Much of the Del Valle area is in a federal Opportunity Zone, offering investors and companies potential tax advantages. It’s also in an area where the city of Austin has worked to encourage development, away from more environmentally sensitive areas in western Travis County. Marketplace owns 67 acres just minutes from Tesla’s planned gigafactory, where the developer plans industrial development. “We get calls every day on every property, and that is not an exaggeration,” Launius said.