BXMT Provides $675M Construction Loan for Downtown Austin Megaproject 

Waterline will rise 74 stories and include the first 1 Hotel in Texas.


They say everything is bigger in Texas, and the state’s soon-to-be tallest building just took one step closer toward achieving its lofty crown after landing a $675 million construction loan. 

Blackstone (BX) Mortgage Trust (BXMT) provided the financing for Waterline, a Downtown Austin high-rise being developed by Lincoln Property Company (LPC) and Kairoi Residential

SEE ALSO: Retail-to-Resi Plans Secure Loan in Los Angeles

“We continue to see strong demand for new, best-in-class residential, office and hospitality assets in high-growth markets like Austin and are excited to support this trophy, mixed-use development that will make a meaningful contribution to the community as well as the Austin skyline,” Katie Keenan, CEO of BXMT, said. 

When completed in 2026, Waterline will rise 74 stories and comprise 352 luxury residences, 700,000 square feet of office space, and the 251-room 1 Hotel Austin — the first Texas location for the SH Hotel Resorts’ sustainability-focused, nature-inspired hospitality brand. 

Suitably, the developers are targeting LEED Gold certification throughout the building which — at 1,022 feet — will exceed by 20 feet Texas’ tallest existing building, the 1960-built JPMorgan Chase Tower in Houston. 

“Downtown Austin offers one of the most dynamic markets and skylines in the nation, and we’re excited to help drive its ongoing transformation,” Seth Johnston, senior vice president of LPC, said in prepared remarks. “Waterline marks a new milestone for downtown not only because of its height but also because of the positive impact this project will have on improving connectivity, enhancing public amenities, and attracting more people to this beautiful area of downtown.”

Waterline is the third high-rise in downtown Austin that Dallas-headquartered LPC has kicked off in the last three years alone, and includes Public Sector Investment Board (PSP Investments) — one of Canada’s largest pension investment managers — as an equity partner. 

The Kohn Pedersen Fox-designed tower will rise above a 3.3-acre campus on the intersection of Waller Creek and Austin’s treasured Lady Bird Lake, and feature floor-to-ceiling windows. Its ground floor will include 24,000 square feet of retail and restaurant space overlooking Waller Creek and Waterloo Greenway, which winds along the creek. 

The 1 Hotel will make its Austin debut with rooms occupying the building’s bottom 13 floors, a ballroom and meeting spaces on the 14th floor and a rooftop pool on the 16th floor. The tower’s office portion will occupy the next 27 stories, with upscale residences filling the top 33 floors. 

“Waterline will offer a truly unique experience with unrivaled views, world-class amenities and a thoughtful design that connects the building’s interior with the project’s unique natural surroundings throughout the building,” Michael Lynd Jr., CEO of Kairoi Residential, said. 

“We are pleased to be increasing our portfolio exposure to high-conviction markets and green assets in one of the fastest growing cities in the United States,” said Carole Guérin, managing director and head of Americas, real estate Investments at PSP Investments. Guérin added that the investment provides “significant upside potential as the city of Austin continues its expansion to become a top-tier U.S. market that offers high quality of life, a supportive business environment, exciting employment opportunities and a hotbed for technology and innovation.”

The BXMT financing follows its $270 million loan in June for Columbia Property Trust’s trophy office property at 799 Broadway

“We look forward to continuing to lend on low-leverage, high-quality projects and serving as a partner to well-capitalized, experienced sponsors like LPC, Kairoi, and PSP Investments,” Keenan said of the Waterline loan. 

Eastdil Secured negotiated the debt. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com