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A rendering of Block 16, which has an expected completion in spring 2026. (Gensler)
A 43-story office tower is coming to downtown Austin, adding to the slew of announcements of high rises and other developments rapidly shaping the skyline.
Known as Block 16, the latest one is at the intersection of San Jacinto Boulevard, Trinity and Second streets. With up to 738,000 square feet, future tenants will get to take advantage of a fitness facility, multiple meeting areas and dining options.
Carr Properties, the developers who moved into the Austin market last year with the acquisition of the building at 100 Congress Avenue, says the tower will be designed with sustainability and wellness features in mind. That includes an indoor air quality approach to maximize health along with 10-foot floor-to-ceiling windows and designs on each floor for access to light and air.
With the project available for preleasing and an expected completion in spring 2026, Carr boasts proximity to a coming rail station and easy access to the Central Business District, Rainey Entertainment District and Lady Bird Lake.
Manifold Development will work as Carr’s local partner on the project. President Tyler Grooms expressed excitement about the partnership, saying “I think we have a real opportunity to deliver a project of world-class design with incredible amenities that best meets the needs of today’s ever-changing work environment.”
Dallas-based CBRE has been brought on as the leasing brokers, and they say the building is a best-in-class trophy asset.
“As Austin continues to generate the strongest office demand in the country, the emphasis has been on a ‘flight to quality, especially in the urban core,” said Troy Holme, Executive Vice President at CBRE.
Other recent development announcements in downtown include a 675-foot tower on W. Sixth St., a 65-story tower with luxury hotel rooms and condos and another on Red River St. that could become the tallest tower in Texas.
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Historic preservationists, for their part, overwhelmingly support historic zoning, which would preserve the buildings in perpetuity. The Historic Landmark Commission unanimously voted to initiate historic zoning in July, citing architectural significance, landscape features and association to historic figures. City staffers recommend historic zoning, calling both structures one-of-a-kind examples of vernacular architecture.
Tarrytown neighbors have also banded together to stop the demolition. Many have written letters, and a few spoke at the meeting. “How could anyone buy this property with the intent of destroying it?” Ila Falvey said. “I think it’s an architectural treasure.”
Michael Whellan, an attorney representing the property owner, said that the claims made by preservationists are shaky. The buildings are run down, he said, and have had substantial renovations. A structural engineer hired by the owner said any attempt at preservation would involve tearing down and rebuilding – an undertaking Whellan said would likely cost millions.
Whellan also argued that any historical significance derived from the property’s association with Delisle and longtime owner C.H. Slator is dubious. “These men are not noted for any civic, philanthropic or historic impact,” he said.
What’s more, according to Whellan, Slator likely participated in segregation as the owner of the Tavern on North Lamar Boulevard between 1953 and 1960.
A city staffer, however, said she found no evidence to support the claim. “We would never landmark a property where a segregationist lived, or there was a racist person,” Kimberly Collins with the Historic Preservation Office said.
Commissioner Awais Azhar couldn’t support historic zoning in part due to lingering uncertainty about Slator. “Focusing on that factor is not here to disparage an individual or family. It is not about playing the race card. This is an important assertion for us to consider as Planning commissioners,” Azhar said.
Commissioner Carmen Llanes Pulido said that allegations of racism should come as no surprise. “We’re talking about white male property owners in the 1950s, in Austin, on the west side – and of course they were racist,” she said. But she argued that allowing the house to be demolished based on these grounds does nothing to help people of color who have been harmed by racism and segregation.
The question of tax breaks was also controversial. Michael Gaudini, representing the property owner, said that the tax breaks associated with historic zoning would exacerbate inequality by shifting property tax burdens to less affluent communities. City staffers estimate that the property, appraised at $3.5 million, would get either a $8,500 or $16,107 property tax break annually, depending on whether a homestead exemption is applied.
Commissioner Grayson Cox preferred the commission focus not on tax breaks but on whether the structures merit preservation. “To me, nothing in the historic preservation criteria lists, is this person deserving of a tax break or not?”
Azhar, on the other hand, said he plans to propose a code amendment getting rid of city property tax breaks for historic properties.
The commission fell one vote short of recommending historic zoning, with six commissioners in support and three opposed. Azhar and commissioners Claire Hempel and Greg Anderson voted against.
The odds of City Council zoning over an owner’s wishes are slim. Nine out of 11 members must vote in favor, and there have only been a handful of such cases over the past several decades.
