It’s a good news/bad news scenario for Downtown San Antonio. For Downtown San Antonio’s Decade of Downtown – the good news, developers are now making their move to build new luxury towers in the city center. Dallas-based JMJ Development announced plans in February to build a 30-story luxury apartment tower on the River Walk close to the Tower Life Building and conditional approval has been granted for a 24-story boutique Hilton hotel on Commerce Street also along the River Walk.
Developers are also in talks with city officials for another 21-story hotel and condo tower on the River Walk that would include the first Texas location of the upscale Thompson Hotels chain. Powers Brown Architecture has submitted plans for the tower on Lexington Avenue across from the Tobin Center for the Performing Arts. The Tower will be reviewed at the March 16th meeting of the Historic and Design Review Commission.
The surge of activity is another sign of the continued renaissance of Downtown San Antonio. The bad news for consumers, construction costs are on the rise and luxury high rise living is destined to cost more in the future. Current downtown condo sales leader, Alteza Residences above the Grand Hyatt, has the advantage of selling at prices below the cost of replacement in today’s market environment. It’s an opportunity that still exists in San Antonio but disappeared from other markets throughout the country. That’s good news for those ready to capitalize on the economic conditions before the new inventory hits the market with higher construction costs incorporated into its pricing.
In other downtown news, the $325 million expansion of the Convention Center was unveiled in January and H-E-B opened downtown’s first full-service grocery store in December. The City Council also approved a public private enterprise deal between Weston urban, Frost Bank and the City. The new building will be downtown’s first new office tower in more than 25 years.