Restaurant, retail tenants wanted for mixed-use development in Kyle

Concept drawing of courtyard in the center of the development
Apr 01, 2024
Sahar Chmais – Staff Writer, Austin Business Journal

A mixed-use project of multifamily housing and retail will begin coming online next year in the fast-growing suburb of Kyle.

The unnamed project, under development by CTC Residential, will bring 384 class A apartments with 27,500 square feet of restaurant and retail space. The goal is to deliver the restaurant and retail portion of the project in the third or fourth quarter of 2025, according to Taylor Ponton, a leasing agent with Weitzman. The timeline of the apartment development is pending as it's in the planning stages.

The live-and-play space will be at 5839 Kyle Parkway and will be near Ascension Seton Hospital, Academy Sports and Outdoor, Lowe’s and a Walmart Supercenter.

Weitzman is pre-leasing 7,500 square feet of food and beverage space as well as 20,000 square feet of inline shopping space. Nick Naumann, James Van Trease and Ponton are directing the leasing of the retail space.

Accompanying the restaurant and retail space will be a 38,000-square-foot activated green space with a playground, sports courts and public art along with a boardwalk with an observation deck and shaded seating.

Tenants sought include “strong” food and beverage anchors, Ponton said in an email. As for retail, Ponton said they are targeting high-end fitness or gyms, coffee shops and cafes and medical users.

Xponential Fitness Inc.’s Cycle Bar and Club Pilates have opened in Kyle and more group fitness businesses continue to expand in the South Austin suburb. But the city of about 57,000 residents still lacks traditional gyms.

The center is calculated to be within a daytime population of more than 42,000 people within a three-mile radium and approximately 69,000 people within a five-mile radius, according to Weitzman.

Kyle is sandwiched between the cities of Buda and San Marcos. Big projects are headed its way: electric vehicle manufacturer Tesla will have about 1 million square feet in Kyle; a 45-acre mixed-use project from Capella is being introduced to the city; and St. David’s HealthCare hospital will join a 155-acre mixed-use project and more.

The city has also been growing its food scene. Sprouts is developing a new store in Kyle as part of a 63,000-square-foot retail center, Abbott’s Frozen Custard is making its metro debut in Kyle, OneTaco is looking to lease in the city and H-E-B plans to expand its store there with a True Texas BBQ restaurant.

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