Capital advisor secures non-recourse loan for local developer’s residential, commercial and parking project
AUSTIN, Texas – Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $29.4 million in non-recourse financing for the construction of 1600 S 1st Street, an 86,700-square-foot, mixed-use condo and commercial development in the Bouldin neighborhood of Austin, Texas. The Mission Capital team of Jason Parker, Steven Buchwald and Jamie Matheny represented developer PSW Real Estate, LLC in arranging the senior loan from a local debt fund.
Situated in the heart of South Austin, the four-story property will feature 59 innovative residential condominiums, approximately 22,800 square feet of ground-floor commercial space and a 321-space underground parking garage. The 59 residences include six studio units, 26 one-bedroom units, 24 two-bedroom units and three three-bedroom units. The property will also feature a wide range of amenities, including a private resident roof deck and a second-floor resident courtyard.
“Austin’s recent growth has been well-documented, and the area around this property has seen its population increase by a staggering 27 percent since 2010,” said Parker. “While It is somewhat challenging to get construction financing for ground-up condos at this stage of the cycle, we were able to achieve our client’s goals by stressing the unmatched demand in this location and the strength of the sponsor’s business plan. We ultimately closed favorable financing with a local debt fund, which provided a non-recourse loan.”
The property’s location in the heart of South Austin positions it just one mile south of the Austin central business district, providing easy access to a myriad of restaurants, retail, and entertainment options. With the neighborhood’s recent population and job growth, this section of Austin suffers from a scarcity of residential, commercial and parking space, and this new development should help meet the local community’s demand for space.
“PSW is known in this region as a savvy developer that is plugged into the market dynamics in every submarket, and they realized they could capitalize on the area’s growth and provide much-needed product to local residents and businesses,” said Buchwald. “With their track record of success and knowledge of the local market, we were able to generate numerous bids, ultimately closing this strong deal with a local debt fund.”
Austin-based PSW is a nationally acclaimed real estate developer and homebuilder that designs and builds urban living environments for people who care about quality and their impact on the world around them. PSW is active in Austin, San Antonio, Dallas, Seattle, and Denver. Utilizing a discerning eye for creating value, PSW thoughtfully produces homes and communities that naturally integrate into their surrounding neighborhoods. With a vision for how the world will be living and working in the future, PSW creates homes that offer proximity to work, school and other important resources while implementing energy efficient construction methods and materials. These key elements promote urban density and conservation, reduce waste, and engender social connectivity.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.missioncap.com.