Austin builder raises $50M for expansion in 4 cities; Goal is to bring in $100M

PSW Real Estate LLC, an Austin residential developer, has raised $50 million in equity investment since it notified the U.S. Securities and Exchange Commission of the securities offering in September. PSW plans to raise a total of $100 million in Class A Preferred Units to finance construction of new developments in Austin, San Antonio, Dallas and Seattle.

Minimum investment is $50,000 and investors must make a three-year commitment. PSW estimates that investors will realize a projected annual return between 13-15 percent.

Kate Braybrook, director of multifamily at PSW, said most investors are familiar with the company, and while many are from Texas, others are from Arizona and the Midwest.

PSW’s platform is a hybrid of single-family homes, condos and for-rent apartments — an unconventional approach to development, but one that has proven successful for the company.

Principals Anthony Siela and Ryan Diepenbrock founded the company in Tempe, Arizona, in 2001 as a couple of ambitious youngsters buying investment properties around Arizona State University.

Eventually Diepenbrock landed in Austin and wanted to stay. Siela joined him and the company really took off in 2009 when Jim Bernard and Mike Andrus joined the team.

The foursome now head the company, which has grow to 70 employees and nearly a dozen developments underway or in the pipeline in Austin, three in San Antonio, seven in Dallas and four in Seattle. Since 2001, PSW has completed 11 projects in Austin.

One of its newest developments — Thornton Flats apartments in the South Lamar corridor— will deliver in the next few weeks. Another project is planned for South First Street, which will contain some commercial components, as was reported by the Austin American-Statesman.

Braybrook said there is no specific end date for raising capital.

“The fund will continue until we reach our raising, but may ebb and flow depending on deployment,” she said. “We won’t be raising capital just for the sake of it if it can’t be used efficiently.”

Currently, PSW controls more than 1,000 lots across all of its markets that could deliver in the next three years. The company also hopes to increase its footprint in the apartment sector and expand to other cities.

Source: Austin Business Journal
Jan Buchholz, Senior Staff Writer

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