Madison Realty Capital Provides $ 279 Million Loan for Austin Residential Portfolio

0


[ad_1]

Capital Real Estate Madison (MRC) has provided a $ 278.5 million construction loan for a portfolio of four assets in Austin, Texas, Commercial Observer has learned.

Funding was awarded to Reger Holdings, a New York-based real estate investment and development firm led by the CEO Gordon reger. The company brought significant liquidity to the transaction.

Austin has benefited from increased investment before and after COVID. Now a perennial favorite with investors, the city is experiencing explosive growth, supported by a diverse economy and growing tech employment of heavyweights like Apple, Facebook and Oracle.

“This transaction highlights Madison Realty Capital’s solution-oriented approach and unique ability to serve as a single source financing provider to a reputable borrower,” Josh zegen, managing director and co-founder of MRC, said. “Austin is a dynamic, fast-growing city experiencing exceptional economic growth, but facing strong barriers to entry. “

The portfolio includes IsVillage, a planned 425-acre residential community in the heart of Austin’s northeastern technology corridor, and Linden Residences, a 28-story condominium building in downtown Austin.

The EastVillage property is adjacent to Samsungthe Austin semiconductor chip manufacturing plant, one of the largest employers, which recently announced plans to expand with a $ 17 billion chip manufacturing facility. It is also located near other large employers, such as Dell and Amazon, as well as a number of booming tech startups.

“The Parmer Lane Technology Corridor is home to some of Austin’s most prominent employers and some of the nation’s most innovative companies, including You’re here, Apple, Samsung, Oracle, Dell, Facebook and 3M“Zegen said.” However, the city faces a dearth of high-quality housing options demanded by employees in the Parmer Lane technology corridor. ”

The mixed-use properties within the EastVillage master plan site are being developed in two phases. The first will offer 312 luxury apartments spread across six garden-style apartment buildings with amenities for residents including a fitness center, courtyard, dog grooming station and swimming pool. The second phase will add 422 apartments, 143,000 square feet of retail space and additional amenities, including a game room and a yoga studio.

Another 317 acres is already approved for the development of 1,264 multi-family units, 240 hotel keys and over 1 million square feet of retail space.

Le Tilleul, at 313 West 17th street in downtown Austin, is a 28-story condominium tower. Upon completion of construction, the luxury property will include 117 residential units and 5,000 square feet of retail and dining space on the ground floor. The condo units will occupy the top 16 floors, with parking below. The commodity-rich units have largely been sold to date.

“Madison Realty Capital’s senior funding for EastVillage and The Linden marks an important milestone for both projects,” said Reger. “We are delighted to be working with a single source of capital that has the flexibility to fund these various projects. “

“We look forward to working with Reger, a leading developer with a strong track record, to complete future phases of development in Austin and continue to identify attractive opportunities for our investors and partners across Texas and the United States. southwest, ”Zegen added. .

Newmark‘s David Douvadjian, Brian butler and David Douvadjian Jr. served as advisers to MRC in connection with the transaction.

[ad_2]

Share.

About Author

Leave A Reply