Simon Property Group (SPG - Free Report) recently broke ground on its upcoming residential development Parkside at Round Rock, located outside Austin. The company has collaborated with Columbus Realty Partners for this 433-luxury-unit project. This marks the sixth partnership between the two companies.
It is slated to open early next year while occupancy is expected to start in first-quarter 2020. It will offer various floor plans like 20 three-bedroom townhomes with amenities like well-equipped kitchens comprising granite countertops, authentic wood cabinets, stainless steel refrigerators and ranges, smart thermostats, large soaker tubs and keyless front door locks.
Just off of North Mays Street, the development sits adjacent to Round Rock Premium Outlets, restaurants and an upcoming hotel. This, along with convenient access to retail brands like Under Armour (UAA - Free Report) , Coach Outlet , Calvin Klein, Nike Factory Store, Polo Ralph Lauren Factory Store, Tommy Hilfiger and others, will likely spur demand for the residential community.
The project is a strategic fit for Simon Property as it caters to demand for residential space in the fast-growing Austin region, and also strengthens the company’s partnership with Columbus.
Notably, this project will also improve footfall at the company’s Round Rock Premium Outlets. In fact, it is focusing on investing billions to transform its properties to create value and drive footfall at its assets. The transformation plans include the addition of hotels, restaurants, residences and luxury stores. In addition, Simon Property is exploring mixed-use development option, which has gained immense popularity in recent years as it helps in attracting people who prefer to live, work and play in the same area.
Eventually, the aim is to transform retail shopping centers to a one-stop destination, where not only people can shop, live and work but also entertain themselves, socialize and exercise, visit doctors as well as relax at the spa. Such measures will likely help boost traffic and drive sales.
Simon Property currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock from the REIT space is Terreno Realty Corporation (TRNO - Free Report) carrying a Zacks Rank of 2 (Buy). The company’s funds from operations per share estimates for 2019 has remained unchanged at $1.32 in a month’s time. Further, it has a long-term growth rate of 8.40%.
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