Madison Realty Capital Lends $13M for Austin Multifamily Development Site
By Cathy Cunningham August 2, 2021 4:13 pmreprints
A joint venture between The Sutton Company, KOA Partners and Atalaya Capital has landed a $13 million loan for the acquisition and pre-development of a multifamily development site in Austin, Texas, Commercial Observer has learned.
Madison Realty Capital (MRC) provided the debt, while Adi Chugh of Surya Capital Partners arranged the transaction.
Located at 4700 South Congress Avenue, the property neighbors Downtown Austin and will be built in two phases. When construction wraps, the plan is to deliver 400 multifamily units, 100,000 square feet of office space, 180 hotel keys and 40,000 square feet of retail space.
“We are pleased to support an institutional JV comprised of highly reputable borrowers and leading local developers with deep ties to the Austin community,” said Josh Zegen, managing principal and co-founder of MRC. “Austin is experiencing a period of tremendous economic expansion and South Congress Avenue has seen a series of top-tier, new, mixed-use apartment developments as a result of its central location close to downtown, the airport, retail shops and businesses, including the Tesla Giga plant.”
Indeed, the development site sits close to Cypress Real Estate Advisors’ 275-unit building, SoCo 44, at 4401 South Congress Street, as well as United Properties’ 385-unit St. Elmo Public Market Apartments at 4329 South Congress Street.
No strangers to the Austin market, the deal follows MRC’s $279 million construction loan for two properties owned by New York-based Reger Holdings: the EastVillage, a 425-acre, master-planned residential community in the heart of Austin’s northeast tech corridor, and The Linden Residences, a 28-story condominium building in Downtown Austin.
Cathy Cunningham can be reached at firstname.lastname@example.org.