Los Angeles, CA – April 25, 2019
Highland Realty Capital secured an $87.9MM, 75% LTC non-recourse construction loan for 48 East Avenue, a 249-unit, 30-story condominium project being developed in Austin’s Rainey District by a joint venture between Austin-based Pearlstone Partners and Miami-based Newgard Development Group. The construction loan was provided by a private REIT focused on creating long-term relationships by originating, servicing and asset managing long- and short-term fixed-rate commercial real estate loans through maturity. The loan will enable the project, which will accommodate young professionals and families interested in owning a residence in downtown Austin, to commence construction by the end of the June.
Robert Lee, founding principal of Pearlstone, acquired the 18,000-square-foot parcel in 2015. In addition to arranging the financing, Highland was involved in sourcing Newgard to venture on the $120mm project as a development partner after Pearlstone received its development approvals in late 2018.
This is the latest development in the Rainey District which has seen significant transaction and development activity in the past few years. The property is located on East Avenue, a highly desirable area located between the Rainey Street Entertainment District and Lady Bird Lake.
Mike Guterman of Highland Realty Capital and John Ghiselli of Waterloo Real Estate Group handled the financing for the venture. This is the second Austin transaction for the Los Angeles-based financing group and Pearlstone, having secured a land loan/construction loan for Axiom East, an upcoming 54-unit development at 7th and Webberville in the East I-35 corridor.