Madison Realty Capital provides $ 279 million loan for Austin residential portfolio – commercial commentator



Madison Realty Capital (MRC) provided a $ 278.5 million building loan for a portfolio of four assets located in Austin, Texas, the Commercial Observer has learned.

Funding was provided Reger Holdings, a New York investment and development company headed by CEO Gordon Reger… The firm contributed significant cash to the deal.

Austin has been a beneficiary of increased investment both before and after COVID. The city is now a perennial favorite of investors and is experiencing explosive growth, fueled by a diverse economy and a growing number of high-tech jobs from large companies such as Apple, Facebook as well as Oracle

“This transaction underlines Madison Realty Capital’s solution-oriented approach and unique ability to serve as a single source financing provider for a reputable borrower.” Josh Zegen, managing director and co-founder of MRC, said. “Austin is a fast-growing, vibrant city with exceptional economic growth but high barriers to entry.”

The portfolio includes EastVillage, a 425-acre residential complex designed by a craftsman in the middle of Austin’s Northeast Technology Corridor, and Linden Residences, 28-story condominium building in downtown Austin.

The EastVillage property is adjacent to Samsunga semiconductor chip factory – one of Austin’s largest employers – which recently announced plans to expand with a $ 17 billion chip manufacturing facility. It is also in close proximity to other major employers such as Dell as well as Amazon, and a number of fast-growing tech startups.

“The Parmer Lane Tech Corridor is home to some of Austin’s best-known employers and some of the nation’s most innovative companies, including Tesla, Apple, Samsung, Oracle, Dell, Facebook and 3 millionSegen said. “However, the city is facing a shortage of high-quality housing that the Parmer Lane Technology Corridor employees need.”

The multipurpose facilities in the EastVillage master planning area are being developed in two stages. The former will offer 312 luxury apartments in six garden-style tenements with residents’ amenities including a fitness center, courtyard, dog-grooming station and swimming pool. The second phase will add 422 apartments, 143,000 square feet of commercial space and additional amenities, including a games room and yoga studio.

An additional 317 acres have already been approved for the development of 1,264 apartment buildings, 240 hotel keys and over 1 million square feet of commercial space.

Linden, in 313 West 17th Street downtown Austin is a 28-story condominium tower. Upon completion, the luxury property will include 117 residential units and 5,000 square feet of retail space and restaurants on the ground floor. The apartments will occupy the 16 upper floors, with parking underneath. By now, apartments with rich amenities have been sold to a large extent.

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

“We look forward to working with Reger, a best-in-class developer with a strong balance sheet, to complete future development phases in Austin and continue to seek attractive opportunities for our investors and partners in Texas and the Southwest,” added Zegen. …

Newmarkfrom David Duvadzhyan, Brian Butler as well as David Duvadzhyan Jr. acted as consultants to MRC in the transaction.


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