Development profile: Encore Multifamily’s Broadway East project

District 2 Councilman Jalen McKee-Rodriguez, in keeping with campaign promises leading up him joining the City Council in June, has told Dallas developer Encore Multifamily he won’t support an ask of up to $7 million in reimbursements for apartments it wants to build east of the Pearl.

The funding, approved by the Midtown Tax Increment Reinvestment Zone (TIRZ) board in August, would essentially pay for new streets and sidewalks, and other infrastructure upgrades in the area.

The issue for McKee-Rodriguez is that Encore plans to construct an apartment building composed of entirely market-rate apartments.

[ READ MORE ]

Encore Multifamily Broadway East project

» Address: 1203 Austin St.
» Development partnership: Encore Multifamily (Dallas)
» Property Owner: Encore Multifamily (Dallas)
» Occupancy: N/A
» Rent or Buy: Rent
» Height: 4 stories
» Land size: 3.67 acres
» Total units: 386
     » Market rate: 386
     » 80% AMI: 0
     » 70% AMI: 0
     » 60% AMI: 0
     » 50% AMI: 0
     » 40% AMI: 0
     » 30% AMI: 0
     » Student Units: 0
» Section 8: Yes, will accept voucher
» Retail (s.f.): N/A
» Office (s.f.): N/A
» Parking: Unknown
» Construction start date: September 2021
» End date: Unknown
» Architect: Unknown
» Cost: $90 million
» Investors & Financing: Unkown
» San Antonio Incentives: $7 million (maximum)
     » SAWS Fee Waivers: N/A
     » City Fee Waivers: N/A
     » City Loans: N/A
     » Est. City Property Tax Rebate: N/A
     » TIRZ reimbursements: $7 million (maximum)
     » Other:
» Bexar County Incentives: N/A
» Texas incentives: N/A
» Federal incentives: N/A
» Other: N/A
» TOTAL PUBLIC SUBSIDY: $7 million (maximum)
» Return on investment: Unknown

Previously published

» Dallas developer struggles to gain City Council support for Broadway East project in Government Hill | Oct. 22, 2021

» Dallas developer plans five-story apartment complex as first phase of GrayStreet’s Broadway East community | Nov. 20, 2020

» Pandemic derails GrayStreet Partner’s plans for Broadway East, delays W Hotel | Feb. 7, 2021

» Rezoned properties offer glimpse of GrayStreet’s 23-acre Broadway East campus | July 5, 2019

Timeline

Sept. 30, 2021

Dallas-based Encore Multifamily has begun preliminary ground work on a $90 million, 386-unit market-rate apartment complex one block east of Broadway near the Pearl.

It’s considered the first phase of a 23-acre master-planned community called Broadway East, which is located on the outskirts of Government Hill.

On Sept. 30, the City Council was scheduled to vote on an incentive worth up to $7 million from the Midtown TIRZ, but the item was pulled from the council agenda by Encore Multifamily. It’s unclear why. The funding was approved by the Midtown TIRZ board during an Aug. 31 meeting.

Despite the delay in funding, Encore Multifamily has already begun preparing the land, which consumes most of the acreage bound by East Grayson, Austin, West Carson and North Alamo streets.

During the Midtown TIRZ board meeting, some board members expressed concern that the subsidy was too large for a project that doesn’t include any below-market rate housing, and whose financial documentation wasn’t made available to demonstrate the need for the public aid.

The funding would go toward major infrastructure upgrades in the area that’s slated to become Broadway East, including rebuilding streets and sidewalks—with the idea that it would help jump start Encore’s project, and others adjacent to it. Recently, GrayStreet Partners, the original visionary behind the Broadway East community, sold most of its land in the area to Fulcrum Development—both firms are from San Antonio.

In a TIRZ, the increased tax revenue as property values rise is collected and invested back into the zone in the form of infrastructure upgrades or below-market housing projects, also known as affordable housing. For this project, the city is expected to reimburse Encore for $4.9 million worth of improvements—not the full $7 million—should the council ultimately approve the funding.

The way the Encore deal is structured, 25 percent of the increment would go toward the city’s “affordable housing fund,” worth an estimated $1 million over eight years.

Setting It Straight: An earlier version of this update incorrectly stated that the City Council approved an incentive up to $7 million from the Midtown Tax Increment Reinvestment Zone (TIRZ) on Sept. 30. The item was withdrawn from the agenda by Encore Multifamily.

Aug. 31, 2021

The Midtown TIRZ board voted 7-1 to approve an agreement awarding 10 years of property tax reimbursements to Dallas firm Encore Multifamily to build a $90 million apartment complex with 386 market-rate units at the northwest corner of Carson and Austin streets, in Government Hill. The agreement is subject to City Council approval. Read more.

July 14, 2021

A $4.8 million incentive package that was earmarked for a Dallas developer to help build on vacant land along Broadway across from the Pearl was delayed on Wednesday. The Midtown TIRZ board unanimously voted to table the vote because it needed financial details on an even larger, big picture project it’s being asked to help fund: the burying of overhead power lines on Broadway from Interstate 35 to East Mulberry Avenue. Read more

July 2020

Encore Multifamily purchases more than three acres of land in Government Hill from GrayStreet Partners last July.


Contact the Heron at hello@saheron.com | @sanantonioheron on Twitter | Facebook