St. Elmo neighborhood in South Austin evolving into hotbed of new development
In the past couple of decades, waves of new development have swept along major roads south of Austin's Lady Bird Lake, transforming areas like South Congress Avenue, South First Street and South Lamar Boulevard.
All the new projects have changed those thoroughfares into lively destinations bustling with crowds of local residents and tourists enjoying the evolving array of dining, shopping, music and other venues. As development pushes south, next up is the St. Elmo area, a stretch off South Congress Avenue just south of Ben White Boulevard, a short drive from downtown.
Dubbed the St. Elmo Arts District by developers, the industrial area continues evolving into an up-and-coming scene of its own with new housing, retail, food and entertainment options springing up.
While not yet the destination draw of the more popular stretch of South Congress between West Riverside Drive and Oltorf Street, some real estate observers say Austinites might not recognize the St. Elmo area in the next few years as it morphs into a hotbed for new development.
Bounded by South Congress Avenue, St. Elmo Road, Industrial Boulevard and Interstate 35, the area still retains some of its industrial flavor. However, it is rapidly gentrifying, with a growing number of apartments and condominiums, brewpubs, food trucks, startups, pickleball courts and more now in the mix.
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Colorful murals bring new life to many of the warehouses in the St. Elmo Arts District, capturing Austin's creative vibe, artistic bent and entrepreneurial spirit.
Employers like Tesla — whose St. Elmo sales and service location draws customers from nearby cities including San Marcos, Buda and Kyle — and ICON, a startup that builds 3D-printed housing, are among the high-profile tenants. And several thousand people live in the St. Elmo Arts District, with more on the way in new housing that is under construction or planned.
"The St. Elmo Arts District is one of the most dynamic pockets of development in all of Texas right now," said Brad Stein, president of Intracorp Texas. Intracorp is building and selling the Congress Lofts, a 148-unit condominium project that includes eight live/work units and retail space, in the heart of the St. Elmo District. The condos are being marketed and sold by Douglas Elliman Development Marketing.
"I believe it is positioned to become like Wynwood in Miami or the Los Angeles Arts District, which both started as industrial districts and have since transformed into premier destinations for art, lifestyle and innovation," Stein said.
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The St. Elmo District spans more than 275 acres, an area equating to more than 60% of downtown.
According to Austin-based Aquila Commercial, almost 3,000 apartment and condo units and about 225,000 square feet of commercial space have opened since 2016. An additional 2,500 or so housing units are under construction or planned in the next few years.
The St. Elmo Arts District offers more affordable housing options when compared with downtown, while still being close to the central business district and major roads and highways, real estate agents say.
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What are some of the projects taking shape?
In addition to the Congress Lofts at St. Elmo, other developments in the St. Elmo Arts District include:
The Yard — the district's flagship development — occupies 200,000 square feet of space that has opened since 2016 in renovated warehouses and is home to mostly local commercial and retail tenants. They include St. Elmo Brewing Co., Spokesman Coffee, Still Austin Whiskey, ICON, Saronic Technologies and Padel Club Austin.
Veloway Threads, the local commercial real estate ownership group behind the Yard, plans 1.75 million square feet of industrial mixed-use space.
"Our goal is to create a diverse and inclusive space that offers something for everyone and reminds people of why they fell in love with Austin," said Priscilla Sauceda, Veloway Threads vice president of operations and community. Over the next two to three years, she said, "our goal is to make all of the St. Elmo Arts District feel like the Yard does today. That includes curating a community with more restaurant and retail tenants, pedestrian-friendly pathways, sustainable landscaping and vibrant art that ties it together to match the look and feel of Austin."
United Properties of Minnesota is building a 274-unit apartment complex called Bishop Momo, which is due to start leasing soon.
More: More apartments headed to Austin's St. Elmo District, south of downtown
Redcar Properties of Los Angeles has purchased a 5.5-acre strip mall, known as the X-Change Center, in the district. Redcar plans to develop the storefronts into smaller spaces for office, restaurant and retail uses.
Leifer Properties recently submitted a zoning request with the city as part of a proposed mixed-use development that could add 1,000 apartments, retail and office space to the district, in buildings of 18 to 20 stories tall.
The city plans to develop the Bergstrom Spur Trail, a 6.5-mile bike trail that would connect the St. Elmo Arts District to East Riverside Drive and U.S. 183 in Southeast Austin, along with other parks, neighborhoods and destinations. If all goes as planned, the trail would become a route to walk or bike to Austin-Bergstrom International Airport.
What else is underway?
Intracorp Texas' Congress Lofts at St. Elmo will have 140 condominiums priced from $400,000 to $700,000. So far, 70% of the units have been spoken for. Units will range from studios to two bedrooms, with the smallest unit about 521 square feet and the largest 1,224 square feet. The project is due to wrap up construction in September or October. Stein said that, with prices in the $600-per-square-foot range, units will be more moderately priced than downtown housing, where prices can run in the $1,100-per-square-foot range
Ten percent of the units will be set aside at below-market rates. There also will be eight live/work units priced from $699,000 to $899,000.
More: Demand for housing isn't going anywhere; See condo plans for Austin's evolving St. Elmo area
A property formerly planned for a food hall has been purchased by New York-based real estate development firm SomeraRoad. Formerly a bus terminal, the property at 4329 S. Congress Ave. is fully leased with its first tenants, which will bring duckpin bowling by Pins Mechanical Co. plus a bar and arcade to the St. Elmo Arts District, with a projected opening this year.
Brock Kenyon, SomeraRoad vice president and head of the firm's Austin office, told the American-Statesman this year: “We are firm believers in Austin and its continued economic growth. We’ve turned over a lot of stones looking for the right project in the right neighborhood. The St. Elmo Public Market has incredible potential, and we’re excited to drive a new chapter for this project with Pins Mechanical."
More: Food hall no more: St. Elmo Public Market on South Congress sold, has redevelopment plans
Coming in mid-July will be Ants Beer Cave. Owner Anthony Capanna said his bottle shop will feature "a treasure trove of over 250 beverages, from rare finds to beloved classics." The beverages will include wine, energy drinks, juice, coffee, seltzers, ciders, sours, cocktails, soda, hard tea, ranch water, kombucha, beer and more. There also will be 16 draft options.
Along with Austin beers, Capanna said he will have beers from across Texas and the world. "We will have a hefe from one of the oldest breweries in the world, Weihenstephaner," Capanna said. Ants Beer Cave also will have two pickleball courts and multiple TV screens. In addition, Ants Beer Cave will expand the culinary offerings in the Yard with its two locally owned food trailers: the Pizza Den and an East Coast-inspired delicatessen.
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Capanna said he is excited to be part of the St. Elmo district. "With all the new residences being built, I see this area blossoming into not just a great place to grab a drink, but into one of Austin's best spots to spend an entire day," he said.
'All the pieces are here'
Two of the longest tenants in the Yard section of the district are St. Elmo Brewing Co., which opened in 2016, and Spokesman, which serves craft coffee, wine, draft beer and food.
On a recent weekday, Austin musician Hari Vasudevan, 33, worked at an outside table at Spokesman.
Vasudevan, who lives in a nearby townhome and is a member of the band called the Green Knights, likes the vibe of the St. Elmo District. While it's still a work in progress, he said, it has all the right stuff to take its place in the ranks of Austin hangouts known for their "pub culture."
"There's not enough foot traffic, but there will be," said Vasudevan, who is from Tamil Nadu, India, and has lived in Austin 10 years. "It's not quite there yet, but all the pieces are here."
Scott Schneider, who lives in a condominium in downtown Austin with his wife, Debbie, enjoy stopping in at the St. Elmo Brewing Co. for a beer and grabbing a bite at the food trucks outside.
"We try to hit all the breweries in Austin," Schneider said, as he, Debbie and their Yorkie, Indy, stopped in at St. Elmo Brewing Co. recently. As the St. Elmo District's popularity grows, the Schneiders said, it can sometimes be difficult to find a parking spot on weekends.
Wendell England is another regular at St. Elmo Brewing. England, who is in his 50s, lives less than a mile away and has been walking to the brewery since it opened in 2016.
He said the area was mostly industrial when he bought his home in 2015 in the nearby Battle Bend Springs neighborhood, but he knew the area was primed to appreciate in value as more people moved in.
England said he bought his three-bedroom home for $290,000, and that he probably could get double that — $600,000 — if he were to sell today.
"This is going to be like the next 78704," he said of the ZIP code south of downtown that includes the desirable Travis Heights neighborhood.
As for St. Elmo Brewing, he counts it among the "great breweries" in Austin and in Texas, which he said rival some he has visited in Colorado and California.
England even bought a $250 membership, entitling him to one free beer every time he steps in the door. He said it only took him 37 trips to break even on his membership.
"It's locally owned," England said of the brewery, where he often meets up with friends he has made there. "It's like family here."
This article originally appeared on Austin American-Statesman: St. Elmo area in South Austin transitioning into its own district
