By Randy Plavajka
Cottonwood Group this week closed a $284 million senior bridge financing package to recapitalize a mixed-use development and condominium property in Austin, Texas.
The Los Angeles-based manager originated the financing for New York-based manager Reger Holdings. The financing will help Reger to recapitalize assets within its East Village master plan, a 425-acre mixed-use project in Austin’s northeast corridor. Mark Green, chief investment officer of Cottonwood, said his firm believes the strength of the sponsorship and Cottonwood’s financing structure will ensure the development delivers on its long-term targets.
The financing facility includes four cross-collateralized and cross-defaulted senior mortgages linked to
Austin-area properties, including:
• The Vaughan, a 312-unit multifamily property, located at 12601 Innovar Circle;
• The Janis, an under-construction mixed-use multifamily and retail asset at 3500 E Parmer Lane;
• The Land, which includes 19 entitled land parcels;
• and unsold luxury units at the Linden Residences at 313 W 17th Street.
“Cottonwood’s loan structure reflects a strategic and flexible approach, designed to support ongoing construction and stabilize cashflows across the diversified asset pool,” Green said. “By leveraging its ability to act as a lender, investor, operator and sponsor, Cottonwood delivered a tailored financing solution that meets the needs of the EastVillage development.”
Green said Northeast Austin has emerged as a hub of innovation and growth. The EastVillage development is located near Samsung Austin Semiconductor’s campus and the global electronics giant has been expanding nearby in Taylor, Texas, to build a semiconductor manufacturing facility.
Reger has been building its presence in the area too while piecing the EastVillage site together. Between 2017 and 2018, the firm acquired the 425 acres the development is located on through multiple transactions as part of its own plans for the Austin-area project.
“As the Austin market evolves, East Village is positioned to capitalize on the city’s dynamic growth,” Green noted. “This development demonstrates how a thoughtful master planning and targeted investment can create a strong, enduring community.”