New Eastside Residential Lofts In the Works

As for accusations of further Eastside gentrification, from the article:

Not everyone will welcome the project. Developments in East Austin are causing property taxes to rise, said Sabino Renteria of the Community Development Commission, an advisory board to the Austin City Council.

Warshaw, Lorenz and architect Richard DeVarga were among the first to realize East Austin's residential potential when they built the Pedernales Lofts, which opened in 2004. The 105 live-work condominiums on East Sixth Street sold out before construction wrapped up. Units in the nearby Saltillo Lofts cost $125,000 to $265,000; 29 have already sold, and the first units are set to open in March.

This shows that there is "enormous demand for housing downtown at prices below $200,000," Warshaw said. "This provides an option for regular folks to be right in the downtown area."

Charles Heimsath, president of Capitol Market Research, agreed. "There is a very high demand for that kind of product," said Heimsath, who is not a consultant on Warshaw and Lorenz's projects.

He said he thinks that there is enough demand to support at least 200 to 250 new units — two to three projects — a year in East Austin, provided that they fall within the $100,000 to $200,000 price range.

Even at those prices, Renteria said, units in the new projects generally are not affordable for many moderate- and low-income residents. "Longtime residents of East Austin are going to get left out," Renteria said. But he said views are mixed about the wave of development because some residents are "being offered very good prices for their homes."