Work starts on Austin tower destined to be tallest in Texas; project's name revealed

Shonda Novak, Austin American-Statesman
·5 min read
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Construction has started on a 74-story tower in downtown Austin that, once completed, will become the tallest building not only in Austin but in all of Texas, its developers say.

Development partners Lincoln Property Company and Kairoi Residential said they have broken ground on the mixed-use tower, which is planned to be 1,022 feet tall. The tower joins downtown Austin's ongoing high-rise building boom, which is reshaping the city's skyline.

An artists rendering shows how the planned Waterline tower, right, would fit into Austin's existing skyline. The 74-story tower is scheduled to be completed in 2026, according to its developers.
An artists rendering shows how the planned Waterline tower, right, would fit into Austin's existing skyline. The 74-story tower is scheduled to be completed in 2026, according to its developers.

The developers on Tuesday revealed other new details about the project, including its name, its scheduled opening date and a new equity partner in the project.

More:65-story hotel-condo tower would become Austin's 2nd-tallest building

The developers have named the tower Waterline. It will be built at 98 Red River St., on 3.3 acres along Waller Creek and the Waterloo Greenway in downtown's Rainey Street area. The high-rise, which will overlook Lady Bird Lake, is planned to open in four years, in late 2026.

Its height will eclipse what is currently the tallest building in the Lone Star State, the 75-story JPMorgan Chase Tower (formerly Texas Commerce Tower) that soars 1,002 feet into the air in downtown Houston. The current tallest tower in Austin is the Independent, a 58-story residential skyscraper nicknamed the Jenga Tower for its offset design. The Independent is about 690 feet tall.

One of Canada’s largest pension investment managers, the Public Sector Pension Investment Board — commonly known as PSP Investments — is the main equity partner in the new Waterline tower, Lincoln and Kairoi said.

Soaring to 1,022 feet, Waterline will become the tallest tower in Texas when it opens in 2026. The mixed-use high-rise in downtown Austin will have hotel rooms, office space and apartments.
Soaring to 1,022 feet, Waterline will become the tallest tower in Texas when it opens in 2026. The mixed-use high-rise in downtown Austin will have hotel rooms, office space and apartments.

Headquartered in Ottawa, PSP Investments has its principal office in Montréal. Other offices are in New York, London and Hong Kong. Blackstone Mortgage Trust, a real estate finance company, provided the construction loan for Waterline.

“Downtown Austin offers one of the most dynamic markets and skylines in the nation, and we’re excited to help drive its ongoing transformation,” Seth Johnston, Lincoln's senior vice president in Austin, said in the release. “Waterline marks a new milestone for downtown not only because of its height but also because of the positive impact this project will have on improving connectivity, enhancing public amenities, and attracting more people to this beautiful area of downtown.”

As previously announced, Lincoln and Kairoi's project will have 352 apartments, 700,000 square feet of office space and a 251-room 1 Hotel Austin. The 1 Hotel will be the first in Texas from global hospitality company SH Hotel Resorts for its luxury 1 Hotel brand, which emphasizes sustainability features.

A rendering shows one of two planned pedestrian bridges over Waller Creek that are part of the Waterline project.
A rendering shows one of two planned pedestrian bridges over Waller Creek that are part of the Waterline project.

More:58-story tower the latest addition to Austin's downtown building boom

Waterline is the third downtown Austin high-rise that Lincoln Property has co-developed and broken ground on inthe past three years. Lincoln and Kairoi also are developing Sixth and Guadalupe, a 66-story, mixed-use tower downtown that is scheduled to open next year. Sixth and Guadalupe will have residences, office space, and ground-floor retail.

Lincoln Property also is building the Republic, a 48-story office tower that is under construction next to Republic Square Park downtown. The Republic is due to open in late 2024.

Michael Lynd Jr., CEO of Kairoi Residential, said Waterline will be "Austin's next iconic project." The tower is being designed by Kohn Pedersen Fox, an architectural firm whose portfolio includes the 55 Hudson Yards and One Vanderbilt towers in New York.

Sculptural columns will lift the Waterline tower’s base 30 feet above the street, creating a two-story canopy that will feature restaurant, retail and public spaces.
Sculptural columns will lift the Waterline tower’s base 30 feet above the street, creating a two-story canopy that will feature restaurant, retail and public spaces.

As part of Waterline, two pedestrian bridges will be added over Waller Creek from the west, along with three public pedestrian and bike access points to the Waterloo Greenway from the east. The developers said they will contribute $1 million to fund improvements to the Waterloo Greenway, a 1.5-mile trail that connects the University of Texas campus to Lady Bird Lake.

Waterline's ground floor will have 24,000 square feet of retail and restaurant space overlooking Waller Creek and the Waterloo Greenway. The hotel will occupy the next 13 floors, with a ballroom and meeting spaces on the 14th floor, and a rooftop pool with food and beverage service on the 16th floor.

Office space will occupy 27 floors, and the residences will be on the upper 33 floors. The 41st floor will have two pools, along with a lounge, bar, kitchen and co-working space.

The developers said May of 2025 is the targeted date for improvements to begin for office tenants' spaces. The schedule calls for the tower to "top out," or reach its highest level of construction, in August of 2025. The timeline lists the fall of 2026 for the hotel and apartment units to open.

The tower is being designed by Kohn Pedersen Fox — a global architecture firm with a portfolio that includes the 55 Hudson Yards and One Vanderbilt towers in New York City.

Joining Kohn Pedersen Fox on the larger Waterline design team are HKS Architects, the architect of record; TBG Partners | Nudge Design (landscape architect); Michael Hsu (interior designer, office); Studio MAI (interior designer, hotel and residential); Brockette Davis Drake (structural engineer); WGI Group (civil engineer); Alvine (MEP engineer) and DPR in the role of general contractor.

Lincoln and Kairoi have not released the project's anticipated cost. A filing last year with the Texas Department of Licensing and Regulation listed the estimated cost at $520 million.

Carole Guérin with PSP Investments said the pension manager's stake in the project, in one of the nation's fastest-growing cities, "provides significant upside potential as the city of Austin continues its expansion to become a top-tier U.S. market that offers high quality of life, a supportive business environment, exciting employment opportunities and a hotbed for technology and innovation.”

This article originally appeared on Austin American-Statesman: 74-story tower, slated to be Texas' tallest, breaks ground in Austin