Intracorp Secures $194M Construction Loan for Austin Tower
- May 29, 2020
The only condo building currently under construction in downtown Austin, Texas, has received $194 million in construction financing. The loan was provided by MSD Partners L.P. and Bank OZK to the project’s developer, Intracorp, for its first project in Austin. The bank also provided a $58.5 million construction loan for a 18-story luxury condominium in Miami Beach, Fla., earlier this month.
Intracorp broke ground on the 49-story project at 44 East Ave. in October 2019 and is scheduled to complete the development in 2022. The high rise community will include 309 units through one-, two-, three- and four-bedroom floorplans with two-story penthouse options. Intracorp tapped Page as the lead architect who will also design the units, Michael Hsu Office of Architecture as the interior designer for the common areas, Flintco as the general contractor and Urbanspace to run the sales and marketing.
While the units range from roughly 500 to 3,500 square feet, residents will also get access to more than 13,000 square feet of amenity spaces. The property’s amenities will include a 24-hour concierge, a coffee bar, a package room with cold storage, bike storage, electric car charging stations and a partnership with a local produce delivery program. The 11th floor of 44 East Ave. will feature conference and meeting rooms, a fitness center with yoga studio, a games room, a dog lounge, a catering kitchen, an outdoor space for barbecuing and two guest suites, while the 37th floor will be fitted with an executive lounge and another conference room.
While still nearly two years out from completion, Intracorp has already sold 45 percent of the units. The remaining homes that are available for purchase range from nearly $400,000 to more than $4 million.
“It was important to us that we start construction at the same time that we started selling homes at 44 East Ave.” Dans Forsgren, Intracorp’s president & CEO, told Multi-Housing News. “The decision to do so has been another important factor in our success so far.”
Forsgren also told MHN that the early sales were attributable to the building’s location, views, interiors, amenities and price points, and that the team was able to offer potential residents a glimpse into the upcoming building through a presentation center nearby.
DOWNTOWN AUSTIN DEVELOPMENT PIPELINE
According to Intracorp, 44 East Ave. is the only condo building that has begun construction in downtown Austin and is also the only project planned for completion in 2022. Forsgren told MHN that four competing condo projects were delivered in Austin in 2019 totaling nearly 800 units and Intracorp’s project represents the next wave of units entering the market.
Forsgren also noted to MHN that while there are other downtown residential projects, they are still in planning or development. Despite being the only residential project under construction, Forsgren said in prepared remarks that Austin is a resilient city and has continually attracted capital investment.