Rapidly changing South Austin gets more luxury apartments

More luxury apartments are coming to a rapidly transforming part of far South Austin.

South Florida real estate investment firm PointOne Holdings has partnered with developer NRP Group to construct a new 308-unit luxury Class-A apartment community at 8103 S. Congress Ave., just north of Slaughter Lane.

The project, called the Knoll at South Congress, will feature a club room and business center, a high-end fitness center, a resort style pool, and a dog park and pet spa. Other amenities include a lounge with indoor and outdoor space, package concierge service, elevators, attached garages and bike storage.

Units will have stone countertops throughout, designer cabinetry, stainless steel appliances, hardwood style flooring and electronic unit entries.

The Knoll at South Congress will join the burgeoning corridor that includes more than 2.2 million square feet of retail, restaurants and bars, including Thirsty Planet Brewery at 8201 S. Congress Ave. and a future Gold's Gym at the intersection of South Congress and Slaughter. Meanwhile, H-E-B is building a new grocery store at Slaughter and Interstate 35.

"We are thrilled to contribute to the significant redevelopment of such an exceptional stretch of South Congress Avenue, Austin's most iconic street," said Alastair Jenkin, NRP Group's vice president of development. "Our project, combined with the new H-E-B grocery store, Thirsty Planet Brewery and planned retail and restaurant spaces, will create a vibrant, walkable pocket only minutes from downtown."

Construction on the 13.3-acre site is expected to begin in the next few weeks.

Rates for the apartment units have not been disclosed, but Leo Peicher, PointOne Holdings principal, said they will be more affordable than housing located closer to Central Austin.

"The Knoll at South Congress residents will live Austin's lifestyle without the traffic congestion while enjoying lower rents than in the urban core," Peicher said.

The project comes at a time when Austin rents and occupancy rates have been rising. After two years of flat rents in 2016 and 2017, apartment rates jumped to their highest level on record by the end of 2018, according to Austin real estate consultant Charles Heimsath.

The occupancy rate averaged 93.1% at year's end, up from 92.2% in December 2017.

Heimsath said 2018 ended with the average rent of a one-bedroom unit at $1,128 a month, while two-bedroom units averaged $1,421 a month in Austin. Those are increases of 5.2% and 4.8%, respectively, over December 2017.