The 86,700-square-foot mixed-use development is to be located in an active part of Austin.
AUSTIN, TX—With Bouldin neighborhood's recent population and job growth, this section of Austin suffers from a scarcity of residential, commercial and parking space, and a new mixed-use condo and commercial development should help meet the local community's demand. This new property's location at 1600 South 1st St. in South Austin positions it just one mile south of the Austin central business district, providing prime access to restaurants, retail and entertainment options.
“Over the past few years, Austin has become one of the most significant markets in the tech and music scenes, and the area's population and economy are clearly on the rise,” Jason Parker with Mission Capital Advisors tells GlobeSt.com. “Nowhere is this increasing vitality more pronounced than in this section of South Austin. With its ideal location near the city's CBD, the population in a 1-mile radius of 1600 South 1st has skyrocketed by 27% in less than 10 years, and population growth is expected to continue at a similar rate for years to come.”
A $29.4 million non-recourse loan was arranged for the construction of the 86,700-square-foot development. The four-story property will feature 59 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 a trio of 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.
The Mission Capital Advisors team of Parker, Steven Buchwald and Jamie Matheny represented developer PSW Real Estate LLC in arranging the senior loan from a local debt fund.
“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,” said Parker. “We ultimately closed favorable financing with a local debt fund, which provided a non-recourse loan.”
Austin-based PSW is also active in San Antonio, Dallas, Seattle and Denver. With a discerning eye for creating value, PSW has a vision for how the world will be living and working in the future. These projects have 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.
“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.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
