Z Modular Refis Austin-Area Project With $62M Loan
This is the developer's fourth modular housing project in the Lone Star State.
Z Modular, a subsidiary of Chicago steel pipe and tube manufacturer Zekelman Industries, has secured a $62.3 million senior bridge loan for Flatz 512, a 384-unit multifamily project in San Marcos, Texas. A partnership between Castle Lanterra and InterVest Capital Partners provided the financing.
The bridge loan replaces a $53.6 million construction loan originated by ACORE Capital for the project in September 2022, according to Yardi Matrix data.
Z Modular specializes in prefabricated steel structures that are used in commercial construction. The building units are 90 percent completed at manufacturing facilities and then transported to their construction sites for final assembly and finishing. Zekelman describes modular construction as a faster and more cost-effective way to build multifamily housing at scale.
Flatz in focus
Located at 834 Cottonwood Parkway, Flatz 512 was completed last year. The property is currently in lease-up, and the current occupancy rate sits about 94.5 percent, Yardi Matrix reported. Situated between Austin and San Antonio, Texas along the Interstate 35 (I-35) Corridor, the region has strong job growth and sustained population inflows.
The 393,988-square-foot property consists of 492 modules contained within eight three-story buildings across a 30.2 acre site. The community has a mix of studio, one-, two- and three-bedroom floorplans ranging in size from 568-1,109 square feet, with an average of 778 square feet. Rents range from $1,120 to $1,949, with an average of $1,372, according to Yardi Matrix data.
Apartments at Flatz 512 have upscale finishes including wood-style flooring, quartz countertops, stainless steel appliances and in-unit washers and dryers. Other features include above standard ceiling heights, high-speed internet access and digital locks with key fob access. Private balconies and patios are available in select units.
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Community amenities include a clubhouse, sports simulator lounge and coworking lounges, a private conference room, a fitness center, tennis and pickleball courts, outdoor grilling stations, a swimming pool and spa, a complimentary coffee bar, walking trails and pet park. The community also has 672 parking spaces and a standalone rental office.
Greystar manages the property.
Other Texas multifamily assets built by Z Modular include Cheatham Street Flats, a 143-unit property also in San Marcos, Flatz 830, a 264-unit property in Marble Falls and Flatz 487, a 300-unit community in Jarrell. The firm is also developing numerous properties in Arizona including Flatz 480, a 318-unit project in San Tan, Flatz 202, a 426-unit asset in Laveen, Flatz 623, a 360-unit property in Avondale and FUZE Ballpark, a 321-unit community in Glendale.
Castle Lanterra’s credit platform
Castle Lanterra, a New York-based national real estate firm run by CEO & Founder Elie Rieder, launched its credit platform in 2023 with a focus on the origination and acquisition of senior bridge loans, mezzanine loans and preferred equity. The firm previously partnered with InterVest Capital Partners in 2024 with a $15 million subordinate loan for the completion of Phase II of Tahoe Beach Club. The partners provided developer Excel Realty Holdings with the financing for the luxury condominium project, located on Lake Tahoe in Stateline, Nev.
Counting the $77 million in transactions closed with InterVest, Castle Lanterra has completed $101.3 million in credit investments since the platform’s formation.
In addition to its credit investments, Castle Lanterra continues to focus on its core-plus, value-add and opportunistic multifamily acquisition strategies. Since its inception in 2009, the firm has completed more than $3 billion of transaction volume across 12,000 multifamily units and more than 890,000 square feet of commercial space.
