Mar 25, 2026

David Kanne Delivers Award-Winning Paseo Tower in Downtown Austin

Traded Media

Traded Editorial

2 min read

Paseo wins Multifamily Development of the Year in Austin
48-story mixed-use tower developed by LV Collective
Project expands Rainey Street beyond nightlife into wellness and hospitality

What Paseo Means for Rainey Street’s Evolution

Paseo marks a major shift for Rainey Street, a district historically known for its nightlife scene. The 48-story tower introduces a more balanced, mixed-use environment by combining residential, hospitality, and wellness components in a single vertical development. By adding new uses beyond bars and entertainment, the project helps stabilize the area’s economic base and supports long-term neighborhood growth in downtown Austin.

What the Mixed Use Program Means for Demand

The Paseo tower blends multifamily living with hospitality and lifestyle-driven amenities. It includes a 59-key hotel, extensive wellness facilities, and ground-floor retail anchored by food and beverage concepts. Residents have access to fitness spaces, yoga and pilates studios, and a rooftop amenity deck overlooking Lady Bird Lake. These features position the building within the growing trend of experience-driven residential development. The project reached over 50 percent lease up within 90 days of opening, signaling strong demand for this type of product in Austin’s urban core.

What the Award Means for Market Positioning

Winning the CoStar Impact Award for Multifamily Development of the Year reinforces Paseo’s influence in the Austin market. The project was recognized for setting new standards in wellness-focused design, mixed-use integration, and overall market impact. It also highlights how developers are increasingly incorporating hospitality and lifestyle elements into residential assets to differentiate in competitive markets.

What This Means for Investors and Developers

Paseo demonstrates how mixed-use residential towers can redefine urban districts and create new demand drivers. By combining housing, hospitality, and wellness, projects like this capture multiple revenue streams while enhancing tenant experience. For investors, it underscores a clear trend: high-density, amenity-rich developments in strong urban locations continue to outperform, especially when backed by experienced sponsors.

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Published: Mar 25, 2026Last updated: March 25, 2026