Like the Monarch Butterfly, the Monarch Tower downtown high-rise is changing itself again into an apartment project.
This decision comes at a time when all eyes are on Austin's burgeoning downtown condo market and it's celebrated success.
Despite sales averaging one a day, the investors in the project apparently needed a faster turnaround for the expected R.O.I. as agreed to originally.
The fact that the investors were from Orlando, one could only speculate that their concerns were mostly fueled by a recent condo sales drop in that area coupled with higher than expected building costs, rather that a fear of a market slowdown here in Austin.
It should also be pointed out that there original plan for the project was for apartments in the first place, so their actions could be based on chasing a market entry point for the investment. This flip-flop reversal has more to do with market timing in determining the highest and best use of the project rather than housing demand in downtown Austin.
Whether or not the rental or the buying model for this project will prove best, one point remains - downtown market demand is strong regardless of the recent weakening credit markets, over-cautious media speculation or the inevitable "doom and gloom" scenario's of those who have not experienced the "mystique" of Austin, Texas.
