Local developer David Adelman and a partner have purchased a four-acre warehouse property directly north of the Lone Star Brewery with plans to build on the momentum of the area’s growth by developing it with a residential use.
A company managed by Adelman and the partner bought the property, 410 Probandt St., on May 21, county property records show. It is across a set of railroad tracks from the former brewery, which GrayStreet Partners and Houston developer Midway plan to rehabilitate into a $596 million mixed-use development. The Flats at Big Tex apartment complex and the Blue Star Arts Complex are across another railroad track north of the property.
“We see what’s going on at Lone Star, we see the long-term success of Blue Star,” Adelman said in a phone interview. “It’s a four-acre site. It’s hard to come by larger-scale sites” near downtown, he said.
He declined to name his partner, describing him as a long-time friend from Austin.
Adelman had success rehabbing a nearby building, 1811 S. Alamo St., which includes restaurant Camp Outpost Co., into retail and office space. He said he is unsure what he will do with the 410 Probandt property but that it will likely be developed as housing. With the recent passage of the charter amendment allowing the city to issue bonds for affordable housing, he is interested in exploring new ways to build housing.
“Most of what I’m looking at, going forward, is housing,” he said. “I’m really exploring housing at all levels. Maybe looking into more on the affordable side, what the future might look like, trying to educate myself a little bit. Of course, we traditionally do market-rate, but, you know, trying to shift and do a little more housing and a little less office and retail.”
As of now, he is unsure when he will build on the property.
“I don’t like sitting on property too long, so I should figure it out soon enough,” he said.
Adelman and another partner, Barclay Anthony, are working on another project to build a 122-unit apartment complex in Cattleman Square, in west downtown. They are asking the city’s Historic and Design Review Commission for permission to tear down two historic buildings that currently occupy the site, 900 W. Houston St.
[ Related: Developer Adelman asks to demolish old Cattleman’s Square Tavern for 122-unit apartment building ]
The 410 Probandt property is currently occupied by a 40,000-square-foot storage warehouse, which was built in 1960, according to the Bexar Appraisal District. The prior owner was G&K Services, a subsidiary of Cintas Corp., a manufacturer of uniforms, cleaning products and other supplies based in Cincinnati, Ohio.
Adelman declined to share the purchase price. He and his partner borrowed $952,500 from Jefferson Bank to finance the transaction, county records show. The Bexar County Appraisal District assessed the property at $2.1 million this year.
Last month, City Council approved $24 million in incentives to help GrayStreet and Midway transform the Lone Star Brewery into a 32-acre master-planned development with 1,282 housing units, 186 hotel rooms and nearly 360,000 square feet of office space. Several prior attempts to redevelop the brewery have failed since it closed in 1996.
[ Related: Council passes $24M Lone Star incentive package, despite community concerns ]
“I’m rooting for them. I certainly think Midway has the capacity, and GrayStreet has the money, so between them that’s a great combination for a real estate project,” Adelman said. “I would say the odds are in their favor. They’re well-heeled investors, well-heeled developers. I think they’ll be successful. That’s my take.”
He said he wasn’t bothered that the 410 Probandt property is wedged between two railroad tracks.
“I kind of like that. I think it’s cool,” he said. “I tell people all the time, if you have a bar in your building, or trash, dumpsters and noise, that’s urban. It’s kind of like how people live in New York City. There’s a lot of noise. So once in a while a train comes by—it’s part of the urban life.”
Richard Webner is a freelance journalist covering Austin and San Antonio, and a former San Antonio Express-News business reporter. Follow him at @RWebner on Twitter
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[…] new developments in former industrial areas not far from downtown. In May, he and a partner bought a warehouse at 410 Probandt St. with plans to capitalize on the development of the adjacent Lone Star […]