South First Street mixed-use development could replace string of parcels

A developer has purchased three parcels along South First Street near West Oltorf Street with plans to replace them with a mixed-used development.

Rastegar Property, which has been busy buying other Austin properties, purchased 2213 South First, 501 West Live Oak Street, and 2209 South First. The last one hosted the so-called Slackerville until about two years ago, when the hub of eclectic retailers (pictured above) was converted into self-storage. It later nearly fell into foreclosure.

No redevelopment is imminent, per the Statesman’s Shonda Novack, who broke the news of the sales. Ari Rastegar, chief executive of Austin-based Rastegar, said any project, though, would possibly involve residential and retail.

He also said he wanted to capitalize on what’s become a hot development corridor as higher rents and prices push residents and retailers out of nearby downtown. The sales price for the parcels has not been disclosed.

Interestingly, the South First Street seller was World Class Holdings, the downtown offices of which federal agents raided in August for reasons that have yet to be specified.