The Carvajal Group Blog

SoLa City Homes: Instant Equity in New Construction in 78704

December 16th, 2011

Rarely does an opportunity present itself to purchase a property at list price and obtain instant equity of 15 to 20%. That opportunity is present at least for the next few weeks at the SoLA city homes located just off S. Lamar in the always popular Austin zip code of 78704.  Currently units are starting at $305k with the same floor plan appraising for $399k.  An important distinction is the units that have sold at the higher prices offered downtown views from the top floor, a feature I would value around $30,000.

Likely factoring into the appraisal values are recent sales at the Ivy on Kinney.  These similar but  smaller town homes were built  in 2005.  Ivy units sell for $200+ per square foot vs. $134-140 per sq. ft. on available units at SoLa.  However, the Ivy features a slightly better location(1115 Kinney) closer to downtown and in a neighborhood with more single family homes.

The first phase of the project was completed in 2008 and the units were marketed at over $400,000.  It was terrifying to spend money in that economic climate, particularly on the first phase of a luxury condominium project. However,  over the last 3 to 4 years Austin has proven to be a remarkably stable real estate market, and increases in sales is a testament to that.

Since Barton Creek Capital took over the development about 5 months ago, 14 units have gone under contract, but 7 in the last 2 weeks since the Statesman article was published.  As of 12/14/11 there are only 4 remaining for April delivery.  At this rate, I fully expect the discounted units to sell out in the next 30 days.  When complete there will be 62 units at SoLA with the next phase probably delivered  sometime in 2013.  They will most likely sell at a higher price point though it depends largely on the market.  For more information on the SoLa City homes, or any other Austin Real Estate or assistance with your Austin home search, please call me at (512)496-0215.

Tags: Austin Home Search · Austin Neighborhoods · Austin Real Estate · Uncategorized