Here’s a quick look at three noteworthy real estate financing deals that were recently completed around the Central Texas region:
Hip east-side office project scores $19M
The developers behind a creative office space coming soon to East Sixth Street secured $19.19 million in financing for the project and expect to finish construction by next month.
EverWest Real Estate Partners, a Denver-based developer, acquired the property from Austin-based Cypress Real Estate Advisors and hired Gensler to incorporate the striking steel infrastructure into the bracing design.
Called UpCycle, the 81,711-square-foot space is a redevelopment of the Balcones Recycling plant. Construction should be completed in May, according to Stream Realty Partners LP, which is managing leasing for the 3-acre site.
Located at 2498 E. Sixth St., the office space features a patio space, conference space, collaborative areas, bike storage, coffee bar, showers and free on-site parking for tenants.
Holliday Fenoglio Fowler LP worked on behalf of the borrower, a joint venture between EverWest Real Estate Investors and WHI Real Estate Partners, to secure the three-year, floating-rate loan through an entity affiliated with the commercial real estate lending platform of Marathon Asset Management LP. Loan proceeds were used to complete the conversion of the existing warehouse properties into creative office.
HFF Managing Director Robert Wooten and senior managing director Eric Tupler represented the borrower. HFF declined to name the lender.
There are no tenants yet signed up to lease space at Upcycle but there is “strong activity” and interest in the site, said Scott Deskins Jr., associate with Stream Realty. East Austin is teeming with new office projects.
A legacy mixed-use center gets fresh funding
Owners of The Triangle, a mixed-use development in North Central Austin, recently scored a $78 million refinancing deal, according to CBRE Group Inc.
CBRE’s Brian Eisendrath, Brandon Smith and Annie Rice represented the owner, Houston-based residential investor and developer The Dinerstein Companies, which purchased the development in 2017 from JP Morgan, according to Dinerstein Companies. Dinerstein has a long-term lease with the state of Texas for the roughly 5.6-acre site at 4600 West Guadalupe St.
The CBRE team facilitated the seven-year floating-rate loan from Freddie Mac with a three-year, interest-only feature, according to CBRE.
“There were complicated negotiations with the state of Texas and the lender throughout the transaction,” Eisendrath said in a statement. “Since Dinerstein closed the acquisition last year, they have legally separated the retail and residential portions of the property, creating tremendous value. However, the separation of parcels and the three phases that are on ground leases held by the state of Texas added layers of complexity to this refinance.”
Eisendrath added, “Our relationship with the lender allowed us to hold pricing and sizing for over three months, giving Dinerstein the time to successfully navigate the complicated ownership structure.”
The loan will fund renovations of a 529-unit apartment complex and some amenity areas, said Merideth Savoie, vice president of marketing and management services for Dinerstein Cos.
In addition to apartments, The Triangle has more than 35 stores and a city park.
CBRE officials say the Triangle is benefiting from rising demand for apartments as Austin experiences 12 consecutive quarters of positive net absorption. Central Austin has a high barrier to entry because of a lack of developable land, resulting in annual average rent growth of 6.3 percent since 2010, according to the real estate firm.
Renovations on tap for Round Rock apartments
JLL’s Capital Markets team recently secured financing for Rock 35, a 112,952 square foot, 144-unit multifamily community, located at 1500 S. I-35 in Round Rock, about 20 miles north of Austin. Freddie Mac provided the loan for Frontline Holdings.
JLL Capital Markets Managing Director Mark Brandenburg led the team on the effort.
“Multifamily properties in Central Texas are drawing the attention of investors everywhere as new jobs and companies enter the Austin market,” Brandenburg said in a statement. “Frontline Holdings’ tremendous foresight has placed them in a great position to capitalize on this investment.”
JLL declined to disclose the loan amount. The financing will fund renovations to the units, which include new flooring, updated cabinetry, black appliance packages, laminate countertops and new bathroom fixtures.