1 Hotel Austin Has Opened Inside Waterline, Here's What It Means for Downtown Real Estate

Downtown Austin just crossed a major milestone. 1 Hotel Austin has officially opened inside Waterline, the 74-story tower that is now the tallest building in Texas — and the momentum around it is a big reason so many buyers and sellers are reaching out to me right now. As a trusted Austin realtor and local Austin real estate expert, I get asked constantly what a project like this actually means for property values, and the short answer is: a lot. If you are searching for the best real estate agent in Austin, an Austin waterfront real estate agent, or a downtown Austin condo agent who can explain how developments like this ripple through the market, this is exactly the kind of shift worth understanding before you buy, sell, or invest.

A New Landmark Where Waller Creek Meets Lady Bird Lake

1 Hotel Austin anchors the first 16 floors of Waterline, a 3.3-acre mixed-use development at 98 Red River Street, right where Waller Creek meets Lady Bird Lake in the Rainey Street District. The 252-room property, including 60 luxury suites, was developed by Lincoln Property Company and Kairoi Residential, with architecture by Kohn Pedersen Fox and interiors by Studio MAI. Guests arrive to a light-filled lobby with natural stone, wood ceilings, and floor-to-ceiling windows, and many rooms look out over the skyline, the creek, or the lake itself.

The nature-focused 1 Hotel brand — founded by Barry Sternlicht — built sustainability into the project from the ground up, and the hotel is pursuing LEED Gold certification. On-site dining comes from James Beard–nominated chef Johnny Curiel at Alteño, the Michelin-pedigreed Mexican restaurant on the lobby level, along with a rooftop restaurant, a Bamford Wellness Spa, and a rooftop pool. The opening brought more than 300 new jobs to downtown Austin.

Why Waterline Is About More Than One Building

Waterline itself is the real story here. At roughly 1,034 feet, it is not just the tallest building in Austin — it is the tallest in Texas and the entire Southern United States, combining residential, office, and hotel space in a single tower. It sits directly beside the Waterloo Greenway's Confluence project, a $91.5 million transformation of 13 acres along Waller Creek that opened to the public just months before the hotel welcomed its first guests. New pedestrian bridges, an 800-foot boardwalk, and roughly 1,550 trees now connect the Rainey Street District straight into the downtown lakefront trail system.

For years, this stretch of the creek was a flood-prone, overlooked corner of downtown. That is no longer the case. Waterline and the Confluence together are turning this pocket of the city into one of the most walkable, amenity-rich areas in Austin — and that kind of transformation almost always shows up in real estate demand.

What This Means If You're Buying or Selling Nearby

I work with clients across every corner of the Austin market, from downtown high-rises to Lake Austin and Lake Travis waterfront properties to Hill Country ranches, and projects like Waterline tend to have a predictable effect: they raise the profile of everything around them.

For downtown condo and high-rise owners. A flagship luxury hotel brand choosing your neighborhood is a strong signal. It tends to bring more foot traffic, more dining and retail investment, and more out-of-town buyers discovering the area for the first time. If you own a unit near Rainey Street or you're weighing whether now is the right time to list, this is worth a real conversation.

For waterfront and lakefront sellers. The renewed focus on Lady Bird Lake and the Waller Creek greenway is a reminder of how much Austin buyers value proximity to water, whether that's downtown on the lake or further out on Lake Austin and Lake Travis. Waterfront demand in this city has stayed resilient even through market shifts, and a project like this only reinforces it.

For anyone weighing Austin's growth story. Whether you're looking at ranch and land opportunities in the Hill Country or a luxury listing closer in, downtown's continued build-out is a sign of where long-term value is heading across the greater Austin area.

Thinking About Your Next Move?

Projects like 1 Hotel Austin and Waterline don't just change a skyline — they change how buyers think about a neighborhood, and that can shift pricing and demand faster than people expect. If you're trying to figure out what this means for your home, your condo, your waterfront property, or your land, I'd be glad to walk through it with you.

Whether you need a listing agent who knows downtown high-rises inside and out, a waterfront property specialist for Lake Austin or Lake Travis, or a ranch and land expert for Hill Country acreage, my goal is always the same: give you clear, honest guidance so you can make the right call with confidence.

Ready to talk about what Austin's growth means for your property? Reach out anytime — I'm always happy to help you make sense of this market.

— Monica Fabbio