NEW YORK, June 08, 2021 (GLOBE NEWSWIRE) — Madison Realty Capital, a fully integrated real estate private equity firm focused on debt and equity investment strategies, today announced it has provided a $278.5 million construction loan for a portfolio of four assets located in Austin, Texas to Reger Holdings, LLC, a New York–based real estate investment and development company led by CEO Gordon Reger, a third–generation member of the Reger/Mader family who founded the company.
The portfolio is comprised of two mixed–use multifamily properties and 317 acres of entitled land with plans to develop 1,264 multifamily residential units, known as the EastVillage, located along the Parmer Lane tech corridor in northeast Austin and a luxury condominium in downtown Austin known as The Linden Residences. Reger Holdings contributed significant cash equity for the construction.
Josh Zegen, Managing Principal and Co–Founder of Madison Realty Capital, said, "This transaction highlights Madison Realty Capital's solutions–oriented approach and unique 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. The Parmer Lane tech corridor is home to some of the most prominent Austin employers and some of the nation's most innovative companies, including Tesla, Apple, Samsung, Oracle, Dell, Facebook, and 3M. However, the city is facing an undersupply of the high–quality housing options that employees in the Parmer Lane tech corridor demand. We look forward to working with Reger, a best–in–class developer with a strong balance sheet, to complete future phases of development in Austin and continue to identify attractive opportunities for our investors and partners throughout Texas and the Southwest."
"Madison Realty Capital's senior financing for the EastVillage and the Linden marks an exciting milestone for both projects," said Gordon Reger. "We are pleased to work with a single capital source that has the flexibility to finance these diverse projects."
The mixed–use residences are comprised of two development sites across 29 acres within the over 400–acre master site planned for the EastVillage. The first EastVillage development will offer 312 luxury apartment units across six garden–style apartment buildings with top–tier amenities, including a fitness center, courtyard, dog grooming station and swimming pool. The second EastVillage development will consist of an additional 422 one–, two– and three–bedroom apartment units with state–of–the–art finishes, fitness center, game room, yoga studio, and 143,000 square feet of commercial space. Future phases of development for EastVillage involve 317 acres of land approved for 1,264 multifamily units, 240 hotel keys and over one million square feet of commercial space. The EastVillage is adjacent to Samsung's Semiconductor chipmaking plant, one of Austin's largest employers, which recently announced plans to expand with a $17 billion chipmaking facility.
Located at 313 West 17th Street in downtown Austin near the State Capital and the University of Texas at Austin, The Linden Residences is a 28–story luxury condominium project that will offer 117 one– to three–bedroom units, 5,196 square feet of ground floor retail and 251 parking spaces. The amenity rich units have been substantially sold to date.
Newmark Executive Managing Director David Douvadjian, Senior Managing Director, Brian Butler, and Director, David Douvadjian, Jr., served as advisors to Madison Realty Capital in the deal.
About Madison Realty Capital
Madison Realty Capital is a New York City based real estate private equity firm focused on debt and equity investment strategies with regional offices in key markets including Los Angeles and Dallas. Founded in 2004, MRC has closed on approximately $14 billion of transactions in the multifamily, retail, office, industrial and hotel sectors nationwide. The firm manages investments in the United States on behalf of a global investor base. MRC is a fully integrated firm with over 60 employees across all real estate investment, development, and property management disciplines. Among other industry recognitions, MRC has been named to the Commercial Observer's prestigious "Power 100" list of New York City real estate players and is consistently cited as one of the industry's top construction lenders. To learn more, follow us on LinkedIn and visit www.madisonrealtycapital.com.
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