T
he real estate market in East Austin is buzzing with activity as developers prepare to construct hundreds of new apartment units. Two major projects are underway: a larger 360-unit complex called 7th & Pleasant Valley and a smaller, 44-unit complex known as 1307 & 1309 East 4th Street. The larger project is being developed by Austin-based OHT Partners on a three-acre site at 2730 East 7th Street. The project will include not only residential units but also 13,000 square feet of office space, bringing the total footprint to an impressive 578,500 square feet. The demolition of an existing vacant retail building previously occupied by an Advance Auto Parts store is necessary before construction can begin.
OHT Partners has been active in the real estate industry since its founding in 2010 and has developed 33 multifamily properties across Texas, with 14 located in the Austin metro area. Despite this success, the company has yet to comment on the planned development.
The second project is being developed by JLCC Interests, a company linked to the private wealth management firm 512 Asset Management. The apartment project will add 44 units to just over a quarter of an acre across the street from Scoot Inn bar. As with the larger project, demolition of existing structures is necessary, including a 3,200-square-foot single-family home and a 1,500-square-foot duplex.
These new developments come at a time when the rental market in Austin is experiencing mixed signals and unsteady deal flow. According to a recent report from ApartmentData.com, rental rates in Austin have been on a steady decline since the summer of 2023, with the average price per square foot dropping to $1.72 in August, a roughly 7 percent decrease year-over-year. The average monthly rent for an apartment in the city stood at $1,524 in August. Occupancy rates, which hit a low of 83 percent in March, ticked up slightly to 84.5 percent in August.
As of August, the Austin metro area had a total apartment inventory of 328,166 units across 1,351 communities, with 25,497 apartments under construction and an additional 32,204 units proposed.
