Exploring East Austin’s Transformation
Insights by DeLea Becker
WATCH FULL PRESENTION ON OUR YOUTUBE CHANNEL
East Austin has undergone significant changes over the past several decades, evolving from a segregated area burdened with industrial zoning to one of the hippest, most gentrified neighborhoods in America. In this extensive discussion, DeLea Becker, a seasoned developer and real estate expert, delves deep into the history, current developments, and future outlook of East Austin. With over two decades of experience in the area, Becker provides a unique perspective on the forces driving this transformation and the implications for the community and developers alike.
DeLea Becker begins by highlighting the historical context that has shaped East Austin. Originally segregated in 1928, East Austin was designated as the area for minorities, particularly Blacks and Hispanics, as per a city plan. This segregation was compounded by industrial zoning, which placed 90% of Austin’s industrial activities in East Austin, leading to significant environmental issues.
Becker explains, “Austin was segregated in 1928 per the plan. Our city council moved all of the minorities, Blacks and Hispanics, East of I35… they put 90% of Industrial Zoning in East Austin, and that induced a lot of environmental issues.” This industrial concentration included the notorious Tank Farms, which housed massive fuel storage facilities for companies like Exxon, Mobil, and Chevron, leading to severe pollution and health issues.
PODER (People Organized in Defense of Earth and her Resources), a grassroots organization, played a crucial role in fighting these environmental injustices. Their successful campaign in 1992 led to the removal of the Tank Farms, marking a significant victory for the community. Becker notes, “It’s the first time that an organization defeated the oil companies…PODER and a lot of organizations in East Austin have a lot of power. Quite honestly, they deserve it, right? I mean, they saved their community.”
The Gentrification Wave
The removal of industrial hazards and the subsequent clean-up made East Austin increasingly attractive to developers and new residents, setting the stage for gentrification. Becker points out that this transformation has been ongoing for over two decades, with property values in neighborhoods like Johnston Terrace skyrocketing by 148% over five years. She observes, “East Austin today is known as the hippest, hipster neighborhood in America.”
This rapid gentrification has had profound effects on the community. While it has brought in new investments and developments, it has also led to the displacement of long-time residents. Becker acknowledges the complexity of this process, stating, “What they actually did also is they started the beginning of gentrification because they made that area of Austin very palatable, if not perfect.”
Key Developments and Projects
Becker highlights several significant developments that have shaped and will continue to shape East Austin. One of the most notable is the Mueller Development, which transformed the old Mueller Airport site into a thriving mixed-use community. “Mueller is 711 Acres…they’ve hit a lot of targets. Here’s a really good one, for developers, one of the reasons that they were able to make it through two recessions is the city of Austin owned the land,” Becker explains.
Another major project is Plaza Saltillo, a collaboration between Endeavor Real Estate and CapMetro, which has revitalized six city blocks with a mix of residential, office, and retail spaces. Becker emphasizes the strategic importance of such developments, noting, “Plaza Saltillo is another one and most of y’all have been over there…800 Multifamily, 150,000 square feet of Office, 1,115 square feet of Retail.”
Becker also touches on upcoming projects like Bolm West and Borden East, which are set to further transform the area beyond Highway 183. She mentions, “Bolm West is coming. I’m excited to see the development has jumped 183 because we’ve been waiting for say 12 years going, when will it jump?
Last week, I had the distinct honor of sharing the stage with Michael Hong, a man whose vision is literally reshaping the Texas skyline. As a representative of KAIRO, Michael is leading the charge on a project that will soon give our state its tallest building. Standing alongside someone who is pioneering such a monumental development was more than just a professional milestone; it was a moment that bridged the history I’ve lived and the future we’re collectively building!
Michael Hong / Kairo are kicking of thier Bolm West Development in East Austin. DeLea, the Queen Of East Austin, welcomes them to the fun!
The Impact of Infrastructure and Policy Changes
Infrastructure projects and policy changes are also critical in shaping the future of East Austin. Becker discusses the I-35 expansion, a project with significant implications for the area. She candidly shares her perspective on the city’s attempts to delay the project, revealing the tension between local and state authorities: “I don’t know how it’s going to play out…the city of Austin asked TxDOT to, you know, delay their project…to which TxDOT said, F*** you.”
This expansion is expected to have a major impact on East Austin, influencing everything from traffic patterns to real estate development. Becker underscores the importance of being proactive in the face of such changes, advising developers and residents to
“get in front of it or you can be dragged behind complaining.”
Throughout her discussion, Becker emphasizes the importance of visionary leadership and community engagement in navigating the challenges and opportunities in East Austin. She highlights the role of local organizations like PODER in shaping the area’s future and stresses the need for developers to work collaboratively with the community. “PODER and a lot of organizations in East Austin have a lot of power…it’s a big deal,” she reiterates.
Becker also reflects on her own experiences as a developer in East Austin, sharing insights from her projects like SOL Austin, the first net-zero capable neighborhood in Texas. She proudly states, “That’s why you have me up here. I’m the Queen of East Austin.”
The Role of Visionary Leadership and Community Engagement
-
East Austin’s transformation is a complex and multifaceted process, driven by a combination of historical factors, economic forces, and community activism. As DeLea Becker’s insights reveal, this area is at the forefront of Austin’s evolution into a major metropolitan hub, offering both opportunities and challenges for developers, residents, and policymakers alike.
Becker’s parting words encapsulate the spirit of the discussion: “Austin was like a graduate student with modest taste and few resources. Now she’s sporting jewels and flying first class…Let’s embrace it. Change is coming. It’s ginormous. We can get in front of it or you can be dragged behind complaining.”
-
Historical Legacy: East Austin’s roots in segregation and industrial zoning have shaped its evolution into a gentrified, highly desirable area.
• Gentrification: The removal of industrial hazards and rising property values have made East Austin a prime location for developers, but have also displaced long-time residents.
• Major Developments: Projects like Mueller Development and Plaza Saltillo are pivotal in East Austin’s transformation into a mixed-use, high-density urban area.
• Infrastructure Impact: The I-35 expansion and other infrastructure projects will significantly affect East Austin’s future growth and development.
• Community Power: Local organizations like PODER have played a crucial role in protecting and shaping the future of East Austin, demonstrating the power of community activism.
00:06 About DeLea Becker
00:48 DeLea's 25 Years in East Austin
01:10 Austin 1928 Master Plan
02:09 Community Activist Orgnaize to remove Environmental Toxins in East Austin
03:07 Austin Gentrification and Explosive Growth
03:50 Austin is 18 Hour City
04:22 East Austin Location and Development
05:46 SOL Austin Beck-Reit Net Zero Capable Development
06:29 Mueller Development East Austin
07:34 Plaza Saltillo East Austin
08:58 More Developments
09:50 TxDOT I-35 Project Through Austin
11:28 Elon Musk and East Austin
12:25 SOL Austin - 1st Net Zero Capable Neighborhood in Texas
13:31 Workbench East Austin Development
14:38 Embracing Austin Today
BE SURE TO ADD ALL PICS -
Pictures from SMPS East Austin History Presentation Nov 2023
East Austin History - SMPS Luncheon - TRANSCRIPT
I'd say good morning, but I guess it's good afternoon.
[00:00:06] About DeLea Becker
My name is DeLea Becker. I know a lot of you in this room. I am the owner and founder of Beck-Reit Commercial Real Estate and Beck-Reit Asset Management. In addition to that, I own Beck-Reit & Sons with my husband. It is a Civil Engineering Company.
We do TxDOT Road and Bridge Repair. We're out repairing your highways, but not in Travis County or Williamson County. I am a New Mexican and I have been raised in the Great State of Texas. I am a UT alum, so it's great to be home this afternoon and oh my God, that slide is old Austin as we know it. I think I stole one of these from Glenn but we've got 1931, 2010, 2024, and 2022 there.
[00:00:48] DeLea's 25 Years in East Austin
I mean, that is how rapidly this is all changing for us. What I realized is a lot of people do not know the History of East Austin. I have been in East Austin. I met my husband in 2000. He lived in East Austin. I've been in it, lived in it, worked in it, owned real estate in it, and It was developed in it for 23 years.
[00:01:10] Austin 1928 Master Plan
It is my neighborhood. Austin was segregated in 1928 per the plan. Our city council moved all of the minorities, Blacks and Hispanics, East of I35 in 1928. In addition to that, they put 90% of Industrial Zoning in East Austin, and that induced a lot of environmental issues. And so, Along comes the Tank Farms Not everybody here knows there were Exxon Mobile, Chevron, Star Enterprises, which is Texaco, Citgo, and Coastal States. They had put tanks in the ground. I don't think they intended to poison East Austin, but it is what they did. East Austin although it is not in writing anywhere but Susana Alamanza of PODER will tell you. Had the second highest cancer rate in the United States, second only to Beaumont.
[00:02:09] Community Activist Orgnaize to remove enviromental toxins in East Austin
1992, PODER formed after Save Our Springs, and they fought to have those tanks removed, and they got them removed. It's the first time that an organization defeated the oil companies. So those got removed. Funny enough, that's where Springdale Green is. It got rezoned for office. It is too toxic for residential.
That was one of the, you know, I guess you'd say deed restrictions on it can never be residential. If you're not on the tour of Springdale Green in two weeks, then you're missing out. I cannot wait to see this 800,000-square-foot vacant building. 1992 the Tank Farms move out. This is important. PODER and a lot of organizations in East Austin have a lot of power.
Quite honestly, they deserve it, right? I mean, they saved their community. It's a big deal. It's a big deal.
[00:03:07] Austin Gentrification and Explosive Growth
So what they actually did also is they started the beginning of gentrification because they made that area of Austin very palatable, if not perfect. I mean, right next to downtown. East Austin today is known as the hippest, hipster neighborhood in America.
In the context of East Austin, we rank Johnston Terrace, which is right across 183 from Bolm West, as the fourth fastest gentrifying neighborhood in America with 148% over a 5 year period. Increase in values. Oh, another reason. I mean, this is more of an overall Austin thing,
[00:03:50] Austin is 18 Hour City
but we are booming because we're an 18-hour city along with Denver, Nashville, and Portland.
It means that employers want to be here because their employees want to be here. They can live, work, and play, which we all know, I don't see very many young people. It's very important to the young people. They've got, They gotta live, work, play, and have a balanced life. So, which is fine for us developers, as long as they spend their money with us.
We're very happy to abide. City of Austin record show. I love this one.
[00:04:22] East Austin Location and Development
The crescent-shaped area, is 18 square miles. That's what we're talking about today whenever we say East Austin. Obviously, East Austin is expanding. You're going to hear about Bolm West. From 1979 to '88, less than one-fifth of the permits pulled were in that area.
It was a quarter between '89 and '98, 1999 to 2008, a third of permits fell there, and 2009 to 2019, almost 50%. 44% of permits pulled in Austin, Texas were in East Austin. We've been booming for a while. This is not something new. If it has just caught your radar, you're about 23 years behind, but that's okay because there's so much room to expand.
And we're ready for it. So, I had CoStar pull these great maps. There's a heat map, last 10 years, clearly multifamily, booming, office, but you can see where it's all going. Different version of the heat map, and I'm going to give you all these slides. So, today, you're going to hear about Bolm West, but I wanted you to know it's not the only thing going on over there.
Plaza Saltillo, Mueller, Regina's 16 Acres. They have not named it yet, but it's another Daryl Kunick. Bolm West you're going to hear about. Borden East is Endeavor's. The Hatchery has come online. If y'all haven't been, it's really cool. Workbench is one of mine that I'm kicking off. And then I thought this was so wonderful.
[00:05:46] SOL Austin Beck-Reit Net Zero Capable Development
SOL Austin in 2006 was our first 40-lot subdivision. Net zero capable. Less than half a mile away from Bolm West. And that was 2006. Mueller Airport. All right, Mueller Airport gets planned in the '20s. It is in the middle of nowhere, but then our city grows up around it. Another community group forms. They don't like the noise.
They don't like the pollution, etc. So in the 1980s, they form activist group, and they start lobbying to get it moved. So Tank Farms are moving. Airports moving. All sorts of good stuff is happening over in East Austin. Again, they kind of set themselves up for the gentrification that happened.
[00:06:29] Mueller Development East Austin
Mueller Development.
The last flight left Austin Airport in 1999. That's the '70s and then that's like 2022. It is the last flight leaves. Catullus is chosen as the developer and They've expanded how many commercial square feet they're putting down. I think they're at 35% affordability. They've hit a lot of targets.
Here's a really good one, for developers, one of the reasons that they were able to make it through two recessions is the city of Austin owned the land. Catellus didn't have to buy it until they started developing it. So, Mueller is 711 Acres or, you know, in comparison, the domain is 300 Acres.
And a very cool fact is that the Austin Development Code allowed them to go as low as 600 square feet for their Single Family Homes. That, in my opinion, was what makes Mueller really really cool. They got 140 Acres of Public Park, they've got Office, they've got Retail, they've got Hospitals. It is booming.
[00:07:34] Plaza Saltillo East Austin
Again, that kicked off in '99. Plaza Saltillo is another one and most of y'all have been over there. That's Endeavor and they partnered with CapMetro. They've put it down on 10 Acres. 6 City Blocks, 800 Multifamily, 150,000 square feet of Office, 1,115 square feet of Retail. That is the plan as it stands, I'd say, within the last 12 months.
And Borden East is right across 183 from Bolm West. So they are still in negotiations and nothing is set in stone as you're going to find out from Michael about their project, but it is a 21-acre industrial site that they're going to turn into Homes, Hotel Rooms, and office square feet of Retail. 10% of it will be affordable housing.
I think affordable housing is a must in the City of Austin. I don't think they'll let you do anything without it, quite honestly. I did find it interesting that they're going for 1,700 fewer parking spaces than normally require. However, parking, mandated parking is GONE I don't know if y'all have heard this, this has occurred.
I don't know unless Andrew put it in my email how it's going to be implemented and when that's the question I don't know. But it is going to be the wild, wild west, people. Woo!
[00:08:58] More Developments
And there is a picture of their site plan. Hatchery, 17 Acres, this one almost skipped, I added this one this morning because I'm like, how did I forget the hatchery?
Fantastic, they took 250 units for Senior Citizens, affordable housing, they've doubled that, they've added Market Rate. It is on Lady Bird Lake on the East Side. When you see a City spending money, it's because they are trying to get ahead of development. They're trying to draw development. And they put this on their docket, if you will.
They're working on the infrastructure right now. Longhorn Dam, which is the dam in East Austin on Perdenales that connects basically Riverside to Cesar Chavez. It used to be a death trap whenever you tried to ride your bicycle, but now it's a protected bike lane with like a cage around it. Super, super nice.
[00:09:50] TxDOT I-35 Project Through Austin
And this one, people, wow, okay, let me see how much time I have, I35 expansion. This is going to be a ginormous impact on East Austin, if not our entire city. I mean, it's going to be huge. I don't know how it's going to play out. I have what I believe to be true. But the most interesting thing was the city of Austin asked TxDOT to, you know, delay their project.
Like, oh, let's check your environmental, to which TxDOT said, F**K you.
To be clear, TxDOT is my boss, right? We do all of our Civil Construction work TxDOT is our boss. We love TxDOT. It's why we don't work in Travis County or Williamson County. Because what in the world? What? They're trying to spend $4.5 Billion and we're trying to say, hold on, just hold on. Okay, well anyway, so Hallelujah TxDOT said you're being irresponsible and they are moving forward.
The city council has figured out that there is nothing they can do to stop it. Ha ha, so now they're like, oh no, now what are we gonna do? Well, they have to come up with $700 Million by December 2024 for this cap and stitch. TxDOT said we'll do it. You're gonna fund it before we get started. Good luck City of Austin.
I mean, if we have some City of Austin folks in here, find the money. I mean, it would be very nice to have that Cap and Stitch. I don't have a lot of faith it will occur. Maybe TxDOT will give them more time. Very very important to know that this I35 is coming, because TxDOT said so.
[00:11:28] Elon Musk and East Austin
We have to give Elon Musk some props, no matter what you think of him.
He's made Austin the centerpiece of his Texas Empire. I didn't know this, GigaTexas is the second largest building in the world. Super cool. So, that's not the only thing he's got. He's got his boring company, Neuralink, SpaceX, and then, thanks to my dear friend, Andrew Evans with Kimley Horn. He reminded me that it was supposed to be Austin Green.
It's going to be like the domain, but 2,000 Acres. But Elon came along and it was the perfect site and it was ready to go. So Elon had ranger excavation out there rolling. That's, that's, I thought it was because of COVID that it moved so fast and that it was Elon, but it was also, it was that it was set up and ready to roll because Austin Green had kicked off.
Was doing their planning, infrastructure, etc.
[00:12:25] SOL Austin - 1st Net Zero Capable Neighborhood in Texas
SOL Austin, this is, this was our first foray into developing in East Austin. We did a 40 lot subdivision, less than half an Acre from Bolm Road starting in 2006. Beck-Reit & Sons was the developer and the contractor.
We did everything. We moved the dirt, we did the utilities, we did the site plan, all of it. Actually ATS, Andrew Evans knows. Because they were our Engineer. KRDB is the fabulous Architect, Chris Krager He is phenomenal at what he does. Affordable, modern, super cool. Net zero capable. We were the first net zero capable neighborhood in the State of Texas.
We were the first to use LED lights in the City of Austin. Nobody even knew what they were. We figured it out. We're like, we'll put these in. Now everybody does. That's why you have me up here. I'm the Queen of East Austin. This is my very first project in East Austin. We bought that building in 2006, and my offices are there today.
You can come see me. I'm 3 Blocks East of I35. And my latest, and that's 2006, 17, 13 years later,
[00:13:31] Workbench East Austin Development
I'm kicking off a 48,000 square foot Office and Retail at East 7th and basically Webberville We are all owner occupants. We're, we've got space for a couple more. Dick Clark Architecture, Fort Structures, Swinnerton.
Beck-Reit Legacy Lighting. We're trying to put in people that are in our industry so that we all get to play in the sandbox together. That's coming out of the ground in August 8th 2024. And all of that is, I just want you to know, I double down on East Austin over and over again. I'm not surprised that Bolm West is coming. I'm excited to see the development has jumped 183 because we've been waiting for say 12 years going, when will it jump? When will it jump? And it is jumping in such a ginormous way. Why do y'all care? Because that's where your work is going. Your developers are going there. Your projects are going there.
There's less environmental issues. You didn't know that? The Going West? So you want to live in Westlake? That doesn't mean a lot of development's going there. Sure it is, I know, but not like East Austin. It's gonna blow out over there.
[00:14:38] Embracing Austin Today
I read this yesterday and I really loved it. "Newcomers to Austin fall prey to this nostalgia almost instantly, and with a longtime resident like me.
The symptoms become comically acute, but the feeling, Austin changing, is like watching someone you love become someone you didn't expect. It doesn't mean that you're not still in love. Austin was like a graduate student with modest taste and few resources. Now she's sporting jewels and flying first class.
She's sophisticated, well traveled, and well connected. These aren't necessarily bad things, they're just disorienting. Nostalgia is a way of remembering when things were simple. It also makes us forget that simple things can be boring and frustrating. Instead of running on the fumes of memory, let's reacquaint ourselves with the actual Austin we are living in.
A city rapidly transforming into America's next great Metropolis." let's embrace it. Change is coming. It's ginormous. We can get in front of it or you can be dragged behind complaining. I don't think anybody here is complaining. But it's going to be impactful. It's going to be huge. And what a blessing we are in Austin, Texas.
SEE OUR DEDICATED EAST AUSTI RESOURCES PAGE
