The Domain Phase II: more than shopping

The Domain Phase II: more than shopping

Written by Tiffany Young Monday, 07 January 2008

The Domain, a mixed-use development built on 304 acres of former IBM property, has paved the way for the City of Austin to plan more mixed-use developments in the North Burnet/Gateway area.

When Illinois-based Simon Property Group and Austin-based Endeavor Real Estate Group began planning The Domain Phase I, the land was zoned as a major industrial/planned development area, but needed an ordinance passed by the city council to allow for the mixed-use development the developers envisioned.

The ordinance allows greater flexibility for the developers to have mixed-use developments that combine retail and housing, which the city hopes to use as a catalyst for development growth.

“The Domain exemplifies the type of development we want in the area,” said Molly Scarbrough, senior planner with the urban design division of the Neighborhood Planning and Zoning. “The City wants to facilitate this area to a mixed-use area, so people can live, work and play all in one area. This is an alternative to the typical sprawl pattern, to allow us to keep population in the city instead of on the fringes. Extending infrastructure to the outskirts of the city is expensive to the city, too, because the infrastructure is already there [in the city].”

The Domain Phase II is two separate developments with the same name, one being developed by Simon Property Group and the other by Endeavor Real Estate Group. Phase I was co-developed by both groups, but is now owned entirely by Simon Property Group.

Domain Phase II - Simon Property Group

Simon Property Group, which owns nine shopping centers in Austin, including Gateway Shopping Center, the Shops at Arbor Walk, Arboretum at Great Hills and Barton Creek Square Mall, is developing a retail development similar to the existing Domain just south of Phase I, with more mixed-use buildings and entertainment added to the mix. Phase II, expected to open in 2009, will include an additional 300,000 sq. ft.of retail and restaurants, 75,000 sq. ft. of Class A office space and additional residential units.

Entertainment will include a Village Road Show Gold Class Cinema complex with eight auditoriums. Additional shopping will be added with a 200,000 sq. ft. three-level Dillard’s and a 75,000 sq. ft. two-level Dick’s Sporting Goods.

Simon plans on building another 350 housing units in The Domain Phase II, the same high-end luxury apartments that are available at The Domain now.

Lincoln Property has leased 85 percent of the 390 apartments available in The Domain, and by summer, 40 more units will be available.

Residential Property Manager Karmin Lynch said the benefits of living in the Residences at The Domain are the close restaurants, shopping, hotels and entertainment coming in Phase II.

“We’re still less expensive than downtown,” Lynch said. “It’s more pedestrian friendly.”

Domain Phase II – Endeavor Real Estate Group

Endeavor’s approximately 178-acre Phase II project will be an extension of Phase I, working around some existing buildings, such as the Texas Culinary Academy and an existing office building, while adding entertainment, local business and recreation.

Endeavor broke ground on Phase II with a five-story office building to the east of The Domain in December and in March will begin work on a 10-acre park expected to be finished by year’s end. The park will include an approximately 1/3-acre lake and a hike-and-bike trail that will be part of a larger system that will run throughout The Domain.

Three hotels are planned for Phase II. Novare Group Holdings, LLC, a leading developer of mixed-use high-rise communities in U.S. urban markets, purchased land by Endeavor for TWELVE Domain. TWELVE Domain will be a 130-suite hotel with approximately 360 condominium residences, 6,500 sq. ft. of restaurant/bar space and 2,000 sq. ft. of retail space. The development was projected at one point to begin in January, but is still in pre-development according to Cathy Wooten, executive vice president of communications for TWELVE Hotels & Residences.

W Hotels has signed a contract for a 145-room boutique hotel, which will be its eighth aloft brand projects in Texas.

Whole Foods has signed a lease with Endeavor for a 175,000 sq. ft. grocery store, which will bring convenient shopping to the residents of The Domain and the North Burnet/Gateway area. Plans include a 250,000 sq. ft., 10-story office building above Whole Foods.

Nordstrom, which has a south Austin location at Barton Creek Mall, has signed a letter of intent to open a second Austin location at The Domain.

Building Green

In Phase I of The Domain, residential housing received a three-star rating out of a possible five stars by Austin Energy Green Building. The city required the project to obtain at least a one-star rating.

Endeavor is continuing its environmental efforts in Phase II by working with the Austin Energy Green Building Program and hiring sustainability consultant Aide Uzgiris of balance-wheel, a cost-benefit analysis, green-building company that advises developers in building projects.

“One of the first great steps they took is hiring someone to be a part of the team who was going to be specifically focused on the sustainability issues,” Katie Jensen, multi-family program coordinator for Austin Energy said. “She’s been interfacing with the team on a regular basis to encourage and reinforce green building throughout and is a general advocate for green building on the team.”

The Domain, Phase I and II, also has access to Austin Energy’s chilled water loop, through a chiller plant that was on IBM’s campus when Endeavor bought the land. This plant provides chilled water, steam and compressed air to The Domain’s tenants, and can substantially reduce the initial capital investment for a cooling system, lower operational and energy expenses for the entire facility and deliver stable, predictable cooling costs over the long term. On-site electrical generation at The Domain is planned within five years.

Details of the Domain Phase II