A group developing a large apartment complex near Austin-Bergstrom International Airport has secured a major financing deal.
Goldman Sachs Alternatives is refinancing Urban East, a 381-unit apartment community located at 6400 East Riverside Drive in East Austin, for $55.5 million, the Austin Business Journal reports. He promised. The funding amount will be $144,000 per unit.
The financing was arranged by JLL on behalf of the development team, a partnership between Battery Global Advisors, the City of Austin Housing Authority, River City Capital Partners, and LDG Development. The project, which was delivered last year, includes 191 units (about half) priced for tenants making 80% of the area median income.
Floor plans for the 7.3-acre Urban East complex, designed by Austin-based architects Davis Collaborative, include studio, one-, two- and three-bedroom units ranging from 600 square feet to 1,450 square feet. is included. The complex’s apartments have private balconies and stainless steel appliances. Facilities include a game room with bowling alley, two swimming pools, a fitness center, a rooftop lounge, and a dog park.
Initial plans for the project included office and retail components, but were ultimately revised to accommodate increased housing needs during the pandemic.
In Austin’s multifamily market, rents have plummeted due to an oversupply of apartments. In Southeast Austin, where Urban East is located, rents have decreased 12.8% over the past year, according to Madera Residential.
This oversupply has resulted in Austin’s occupancy rate being among the lowest in the Sunbelt market, at 86% occupancy in January. Experts predict that the trend of lower rents will continue, giving tenants more bargaining power.
New multifamily projects are still underway, such as OHT Partners’ 360-unit development in East Austin, indicating continued interest in the market.
— Andrew Terrell
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