A joint venture between Pearlstone Partners and Newgard Development Group has secured an $87.9 million construction loan for the development of a 33-story, 249-unit condo project in downtown Austin. 3650 REIT originated the single-source stretch senior loan, which will allow construction to start by the end of June.
The property, 48 East, is targeted at young professionals and families, and will feature luxury units averaging 851 square feet, with a minimum size of 456 square feet. The site is located at 48 E. Ave. in the city’s Rainey Street District, near Lady Bird Lake and the restaurant, food truck and nightlife offerings of Rainey Street. The project is currently slated for completion in March 2021, subject to adjustment.
Robert Lee, founding principal of developer Pearlstone, bought the 18,000-square-foot parcel in 2015. Highland Realty Capital, which arranged the construction loan, was involved in bringing Newgard on board as a development partner after Pearlstone received approvals for the $120 million project late last year, according to a statement by Highland.
Projects rise in Rainey Street
The formerly residential Rainey Street neighborhood has become a trendy commercial destination after being rezoned as part of the city’s central business district in 2004. A short walk up the street from 48 East, Sackman Enterprises topped out the premium condo development 70 Rainey last June. The 34-story property offers 164 for-sale homes.
A bit further to the north, Endeavor Real Estate Group and MetLife Investment Management broke ground on The Quincy, a 30-story mixed-use tower in March. Expected to open in the first quarter of 2021, the tower at 93 Red River St. will be the first in the area to combine residential, office and retail units in the same building.