By Mario Marroquin
Dallas-based real estate investment firm Lincoln Property Group and Kairoi Residential of San Antonio, Texas, secured a $675 million construction loan for their Waterline development project in downtown Austin this week.
Construction financing, according to Commercial Observer, was provided by Blackstone Property Trust and will fund a 3.3-acre development at 98 Red River St., consisting of 352 luxury apartments, 700,000 square feet of office space and a 251-room hotel.
The site is located near the Colorado River and directly across from the Austin Convention Center. Canada’s PSP Investments is the main equity partner in the project.
“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,” Carole Guérin, managing director, head of Americas real estate investments, at PSP Investments. “This 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.”
Lincoln Property Group and Kairoi held a ceremonial groundbreaking event at the site of the Waterline project on September 6. The project is slated to become the tallest high-rise in Austin by 2026 and will include 24,000 square feet of retail and restaurant space at ground level.
News of the Waterline construction financing comes one week after PSP Investments’ new president and CEO, Deborah Orida, took charge of the $175 billion AUM pension fund.
PSP Investments has been busy – it recently struck a $500 million deal with Chicago-based real estate investment firm Bridge Industrial to develop urban infill warehousing in core markets in the U.S.