Austin-based investment and development company Wayfinder Real Estate has broken ground on Lookout, a 241-unit apartment project in Dripping Springs. Lookout the only multifamily project under construction in the suburb west of Austin.

Lookout's developers aim to provide an alternative to single-family home ownership in Dripping Springs, where the population has more than doubled over the past decade and the median home price has soared to $905,000.

Apartment occupancy in the Dripping Springs submarket is at 95 percent, according to market research site Axiometrics. Limited water and wastewater capacity in the city and surroundings make building new multifamily communities a challenge.

Lookout is on 7 acres at 13059 Four Star Blvd., directly across U.S. Hwy. 290 from the mixed-use Belterra development on the former Trudy’s Four Star restaurant site.

The Lookout apartments, under construction in Dripping SpringsLifang

Lookout will offer one-, two-, and three-bedroom apartments and townhomes targeted at young professionals and families. The hilltop complex will have a rooftop terrace with panoramic views. It's part of the Ledgestone master planned community.

Davies Collaborative is the architect on the project, and Wayfinder Design is designing the interiors. OHT Partners is the general contractor. D Delta is an equity partner, and Southside Bank provided the construction loan.

Lookout is scheduled to open in late 2024.