la Frontera In the News

Round Rock Leader

December 30, 2002

New retail center planned at La Frontera

Drop in office rentals leads to $8 million retail complex

by Michael Taylor, Leader Staff

The feedback that developer Robert Wunsch was getting was not encouraging. A soft market was sending potential rents for his planned office complex spiraling downward. It was early enough to scratch the plan and start again. Two more acres and a shift in focus from office to retail space has made for a different story.

Construction is set to begin before the year's end on the 41,000 square foot Vintage at La Frontera, an $8 million retail complex along the Texas 45 frontage road. Wunsch, president of Robert D. Wunsch Development, originally had a 32,000 square-foot office building planned for two acres of the site. Since shifting to a retail project, the developers purchased an adjoining two-acre lot for their three building project. Two tenants, Bank One and the electronics chain store Tweeter, have already signed contracts, according to Wunsch, and tenants should be able to begin setting up this summer.

The switch in the plan was a natural choice for the developers, according to Wunsch.

"All our deals are structured very conservatively," Wunsch said. Following through with the plan for office space required too much faith in speculation about the potential for the market to change, he added.

Retail in Round Rock is another story however and La Frontera is currently the center of that market.

"It's the place to be in Round Rock," Wunsch said. "The visibility and the traffic patterns are just phenomenal right there."

The location of the site was a definite help in securing the early clients, Wunsch added. As work on Texas 45 progresses, it will bring more and more potential shoppers to the entrance where Vintage will be located. Wunsch said that the design of the buildings and landscaping will make Vintage an attractive focal point for the entire La Frontera development.

Wunsch's name is most frequently associated with his subdivision projects. He is currently developing Avery Ranch, a subdivision in North Austin and is beginning a project called Ashton Oaks, that includes apartments and single family homes, off of the soon to open A.W. Grimes Boulevard. Both of those projects have a relatively small commercial component and Wunsch said that interest has been high in the three "commercial corners" in Avery Ranch.

Nancy Yawn, public affairs and business development director for the city of Round Rock, said retail projects play an important role in city finances due to the sales tax reliance of city tax structure. Also, an important part of the city's strategic plan is to diversify the source of those sales tax dollars. Currently, nearly half of sales tax revenues come from Dell Computer, Inc.

The three buildings in the project will allow for extensive landscaping and five or six corner spaces – and additional attraction for retailers, according to Wunsch.

Darren Quick, vice president of commercial real estate brokers, Don Quick and Associates, said that until Texas Guaranteed Student Loan took about 90,000 square-feet of office space off the market a couple of months ago, things were pretty hard in the office rental business.

"I applaud the decision completely," Quick said. "I think they're going to have a much better time with retail than they would with offices."