AUSTIN, Texas – Aspen Heights Partners, an Austin-based real estate developer, has received the green light from the Austin City Council for its ambitious proposal to redevelop the city-owned HealthSouth tract. This pivotal project, poised to transform Downtown Austin, will deliver 232 units of much-needed affordable housing alongside a host of community benefits. Aspen Heights Partners is collaborating with Capital A Housing and The NHP Foundation on this transformative development. The master development agreement, marking a significant step forward, was officially approved at a City Council meeting on Thursday, September 29th.
“Aspen Heights Partners is deeply committed to addressing the evolving needs of the communities we serve,” stated Greg Henry, CEO of Aspen Heights Partners. “As a developer rooted in Austin, we are particularly enthusiastic about spearheading this project. We eagerly anticipate close collaboration with city officials and our esteemed development partners to bring this vision to fruition, contributing to a more vibrant and inclusive Austin for all residents.”
Aspen Heights Partners has been diligently working alongside Austin city officials and community stakeholders since 2020 to meticulously craft the redevelopment plans. Recognizing the importance of collaboration, Aspen Heights Partners strategically partnered with Capital A Housing and The NHP Foundation, leveraging their expertise in affordable housing development and management for this significant undertaking.
Former Austin Mayor Steve Adler highlighted the project’s significance, stating, “The HealthSouth redevelopment, spearheaded by Aspen Heights Partners, represents a crucial instrument in our ongoing efforts to augment Austin’s affordable housing inventory. This project alone will inject over 200 affordable housing units into our downtown core, effectively doubling the existing number. While more is needed, this initiative constitutes a vital stride in the right direction.”
The expansive mixed-use residential development by Aspen Heights Partners will encompass nearly an entire city block, bordered by 12th Street, Red River Street, the future 13th Street, and Sabine Street, incorporating the site of the former HealthSouth hospital. The plan features two striking residential towers rising above a 6-story podium. A 30,000 square foot public plaza will serve as a community focal point, complete with verdant green spaces, inviting water features, and a vibrant 18,000-square-foot local restaurant food-hall and business incubator designed to foster local entrepreneurship. Residents and visitors alike will enjoy captivating views of the Texas Capitol, the revitalized Waterloo Greenway, and the dynamic downtown skyline. Furthermore, an on-site music venue with below-market rate rents will enrich the city’s cultural landscape.
The residential towers developed by Aspen Heights Partners will offer a total of 921 units, with a commitment to reserving over 25% as affordable housing options for low-income Austin families. Demonstrating a holistic approach to community needs, the development will also include an on-site childcare center providing affordable tuition for residents. The 232 affordable units, constituting approximately 18 floors of the south tower, will be expertly developed, owned, and managed through the collaborative efforts of NHP and Capital A, ensuring long-term affordability and quality management.
The City’s search for a visionary developer for this key site commenced in November 2019 with a Request for Proposal. Aspen Heights Partners’ compelling proposal emerged as the top choice in April 2020, outscoring three other submissions. The inclusion of Capital A Housing and The NHP Foundation, coupled with a robust plan emphasizing economic opportunity, environmental sustainability, and affordable housing, solidified Aspen Heights Partners’ selection and garnered City Council approval to proceed with negotiations.
While the Austin City Council has authorized negotiations to move forward, the final agreement, encompassing the 99-year lease and comprehensive development agreement, will be presented to the Council for final approval upon completion. City staff anticipate finalizing the development agreement by Spring 2023 to maintain the project’s projected completion and delivery in the summer of 2027, ensuring timely realization of this significant community asset by Aspen Heights Partners and its partners.
For further details regarding the 1215 Red River St. and 606 East 12th St. Development project by Aspen Heights Partners, please visit the official City of Austin website: https://www.austintexas.gov/department/1215-red-river-606-east-12th.
About Aspen Heights Partners
Aspen Heights Partners is a nationally recognized developer specializing in Multifamily, Student Housing, and Single Family for Rent communities. Since its inception in 2006 and with over $3.5 Billion in development to date, Aspen Heights Partners, headquartered in Austin, TX, is dedicated to pioneering a unique and innovative development platform. The company prioritizes creative designs that foster strong community connections. Aspen Heights Partners strategically collaborates with industry-leading partners to combine its development expertise with superior construction standards and property management strategies. These strategies are built around innovative and contemporary marketing, proven sales methodologies, and exceptional customer service. For more comprehensive information about Aspen Heights Partners, please visit: www.ahpliving.com.
Contacts
Media: Ayelet Ehrenkranz Antenna Spaces [email protected]
