Canyon Partners, Gilbane to Build in Austin

Canyon Partners Real Estate and Gilbane Development Co. have joined to provide a preferred equity investment in the development of Aer, a 375-unit Class A project in Austin. Located in the South Lamar submarket, the community is approximately three miles south of downtown Austin along South Lamar Boulevard.

Aer is positioned near major highways, including east-west Highway 71, north-south MoPac Expressway, and Interstate 35, allowing connectivity throughout the city and surrounding suburbs.

The community will offer direct access to retail and restaurant options as well as parks and hiking trails. Aer is a play on the word “air,” as a green belt will be featured behind the project.

Active elsewhere

Canyon has capitalized $2 billion on total projects across all asset types in Texas. Aer marks its fourth investment in the Austin-area over the past five years.

In August, the company began development on a partially affordable community, 251 Douglass Street, in Brooklyn, N.Y., in a joint venture with Tavros and Charney Cos. Tavros and Charney Cos. acquired the project site for $22.5 million in April 2020 before teaming up with Canyon Partners. The three partners expect to complete the project in the fourth quarter of this year.

Also highly active, Gilbane Development Co. recently formed a joint venture with CBRE Investment Management involving six student housing properties in Power 4 schools. In total, the initial properties encompass nearly 3,000 beds.

Gilbane Development Co. has more than $8.5 billion in development and more than 25,000 units of housing completed/underway. One such project is in progress with Purdue-Fort Wayne. Gilbane Development Co. will develop a 600-bed student housing community on the institution’s North Campus in Fort Wayne, Ind. The 213,000-square-foot property will comprise 176 units, ranging from studio to four-bedroom floorplans, and is expected to come online in 2026.