Austin developments land $280 million to finance planned construction
Four high-profile properties in Austin have received nearly $280 million in construction financing.
Madison Realty Capital announced that it has provided a $278.5 million construction loan for the four properties to the developer, Reger Holdings, a real estate investment and development company based in West Seneca, N.Y.
Madison Realty Capital is a real estate private equity firm based in New York, with regional offices in major markets including Los Angeles and Dallas.
One of the four properties is a 28-story condominium in downtown Austin known as the Linden Residences, which is due to break ground soon at 313 W. 17th Street. The tower is will have 117 condominiums, along with ground-floor retail and 251 parking spaces. Reger said the units have been “substantially sold” but did not provide a number.
The Linden will replace the William Gammon Insurance building on Guadalupe Street, and is expected to take more than two years to complete.
The other properties are in the planned 425-acre mixed-use project known as EastVillage. Two are apartment complexes that will have a total of 734 units, and the other property consists of 317 acres where 1,264 additional housing units are planned.
Initial work has been going on at EastVillage for more than six months. The first phase is due to break ground this month and is expected to be completed in about 18 months.
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The second phase for EastVillage is expected to break ground in the next six months and take just under two years to complete.
Reger Holdings, which is developing EastVillage and the Linden, contributed significant cash equity towards the construction of the projects, Madison Realty Capital officials said in a news release. Madison officials declined to comment beyond the press release.
When built out in phases over time, the mixed-use EastVillage development eventually could be a $1 billion-plus project, Reger has said. The project is planned for office space, housing, hotels, restaurants, retail, a grocery store and a movie theater, along with pedestrian paths, an amphitheater and hike and bike trails.
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Josh Zegen, managing principal and co-founder of Madison Realty Capital, said the construction loan highlights Madison’s ability “to serve as a single source financing provider to a highly reputable borrower.”
“Austin is a rapidly growing, vibrant city experiencing exceptional economic growth but faces high barriers to entry,” Zegen said in a news release. “The Parmer Lane tech corridor is home to some of the most prominent Austin employers and some of the nation’s most innovative companies,” he said, including Apple, Samsung and 3M.
Madison’s financing for the EastVillage and Linden projects is a milestone for both developments, Reger CEO Gordon Reger said.
“We are pleased to work with a single capital source that has the flexibility to finance these diverse projects,” Reger said.
The mixed-use residences planned for EastVillage encompass two development sites across 29 acres within the larger project, which will span more than 400 acres in all.
The first EastVillage project will have 312 luxury apartment units in six buildings, with amenities that include a fitness center, courtyard, dog grooming station and swimming pool.
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The second EastVillage development will bring an additional 422 apartments with one-, two- and three-bedroom units, with high-end finishes and a game room, yoga studio, and 143,000 square feet of commercial space.
Future phases of development for EastVillage will include 317 acres of land that have been approved for 1,264 multifamily units, 240 hotel rooms and more than one million square feet of commercial space.
EastVillage will be built next to Samsung’s Semiconductor chipmaking plant.
Samsung, one of Austin’s largest employers, recently announced plans to expand with a $17 billion chipmaking facility, although the company has not yet announced a site for the planned expansion.