Austin: Local Developer Plans Multifamily Complex on South Congress Site
Featured Photo (above): Austin developer Rastegar Property Co. looks to build a multifamily community on two vacant parcels that make up 5402 S. Congress Ave. Image: Google Streets
by Edmond Ortiz
Austin (Travis County)–An Austin developer has purchased a 1.3-acre tract on South Congress Avenue with plans to develop the abandoned property into a multifamily community.
Rastegar Property Co., which bills itself a “vertically-integrated real estate investment firm focused on value-add and development,” announced in a press release its acquisition of a 56,628- square-foot property at 5402 S. Congress Ave.
The developer currently envisions 76 multifamily units and 115 underground parking spaces to “maximize rentable square feet,” Rastegar stated. It is a block south of Sur 512, a high density multifamily community at South Congress and Williamson Creek.
No site plan, renderings, construction schedule or project costs are presently available.
The property is located at West Mockingbird Lane, just north of West Stassney Lane and a few blocks west of Interstate 35. The land consists of two parcels where several small vacant, single-story houses stand. Their demolition is pending.
Those structures were built out over a number of decades, with the oldest dating to 1935, according to Travis Central Appraisal District records. The two parcels at 5402 South Congress have an appraised value of $1.07 million.
These vacant residential structures at 5402 South Congress were built over numerous years. Image: Google Streets
The site has a total buildable potential of more than 110,000 square feet, according to the news release, given its proximity to the central business district and other developing neighborhoods in South Austin.
“Along with businesses, young professionals are relocating to Austin at a furious pace, and the demand for city residences via multifamily housing is far outpacing the supply,” Ari Rastegar, CEO of Rastegar Property, said in the release.
“Being based in Austin, we have long had our eye on the south side of the city as one of the most rapidly-growing and vibrant neighborhoods. As development continues to expand south due to demand, we believe there is great potential to add value to this property and others in the region, which will benefit our investors and those in this thriving community that we are so proud to be a part of.”
Rastegar Property specializes in acquiring complex or undervalued real estate assets. The company has been involved with developments nationwide, having invested in nearly 5 million square feet of real estate with projects in 12 states and 34 cities.
Rastegar recently acquired a 39-acre tract near Georgetown to build a multifamily development there.
World Class Capital Group, an Austin-based real estate investment firm operating under the name WC 5402 South Congress LLC, sold the South Congress property to Rastegar.
Ari Rastegar previously spent several years working with World Class owner Nate Paul.
Edmond Ortiz is a lifelong San Antonian and a 20-plus-year veteran in local journalism, He previously worked full-time at the San Antonio Express-News, and has been freelancing for outlets such as the Rivard Report.