MSD Partners Lends $124M on Austin Office Build
A joint venture of Generational Commercial Properties and Fairway Real Estate has nabbed $124 million of construction financing for an office development in Austin, Texas, Commercial Observer has learned.
MSD Partners provided the loan for the sponsorship’s planned Zilker Point project in Austin’s South Lamar central business district. The deal closed Monday.
Newmark arranged the transaction with a team led by Dustin Stolly, Jordan Roeschlaub, Nick Scribani, Chris Kramer, Chase Tagen and Dan Morin.
“We are extremely excited to partner with Generational Commercial Properties and Fairway Real Estate as they advance the Zilker Point project,” Adam Piekarski, MSD Partners’ co-head of real estate credit, said in a statement. “We also are pleased that our investment in this special Class A office property deepens MSD Partners’ long-standing commitment to Austin.”
Located at 218 South Lamar Boulevard, the future 207,000-square-foot office building is part of a 1.26-acre site currently occupied by a one-story restaurant and paved parking areas. The property will feature 192,000 square feet of office space across its top six floors and 15,000 square feet of retail and amenities on the ground floor. The WELL building-certified asset will also have shared and private outdoor spaces and a tenant fitness center.
Joseph Llamas, CEO of Generational Commercial Properties, said the project’s location near downtown Austin and next to Zilker Metropolitan Park coupled with having 635 parking spaces will make it attractive for companies looking to set up shop in Texas’ capital city from high tax states like California. He said construction is slated for completion by August 2024.
“We expect to see demand from tech companies as well as professional services firms,” Llamas said. “We have aggressively worked to convince businesses to relocate to Austin for its cost of living benefits and quality of life advantages.”
Andrew Coen can be reached at email@example.com