CIBC Lends $46M on Austin Industrial Park Build
By Andrew Coen September 30, 2022 10:57 am
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Ari Rastegar’s Rastegar Property Company has sealed $46 million of construction financing to build a new industrial park on a 50-acre parcel in Austin, Texas, Commercial Observer can first report. The site sits within a qualified opportunity zone.
Rastegar plans a park that will have roughly 600,000 square feet of rentable space. Canadian bank CIBC provided the loan for the planned property a few miles from Tesla’s Gigafactory, known as Tesla Giga Texas. Rastegar Industrial, the industrial arm of Rastegar Property Company, acquired the property at 11708 McAngus Road in February 2021 for an undisclosed price.
“[CIBC] really saw the opportunity to be a very large institutional partner on the project and they were able to see the opportunity in Austin, and we were able to lock in the deal a couple months before the capital markets started to get frothy,” Rastegar, CEO and founder of Rastegar Property Company, told CO. “We’ve already preleased over 100,000 square feet, and we haven’t even put the proverbial shovel in the ground yet.”
A groundbreaking ceremony for the project is slated for Oct.14 with completion expected in around 12 months. Rastegar said there has been interest so far from technology companies, packaging firms and storage groups in need of space for supply chain logistics who are attracted to the property’s close proximity to Austin-Bergstrom International Airport. The site is also near State Highway 130 and Circuit of the Americas, home to the Formula 1 United States Grand Prix.
CIBC declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
