Follow the money: Hundreds of millions of dollars in refinancing deals secured across Austin

Several big developers and investors have refinanced major commercial real estate assets in Austin this summer, including a $134.5 million loan secured by the new 500 West 2nd office tower downtown. Another new office building — Domain 8 at The Domain — also secured new permanent financing in the form of a $95 million loan. Both outlays were obtained from Wells Fargo & Co.

Information about the new financings was gleaned from data provided by Real Capital Analytics.

The owner of 500 West 2nd, which will house Google Inc.’s regional headquarters, is a joint venture of Trammell Crow Co. and Principal Real Estate Advisors.

The owner of Domain 8 at 11601 Alterra Parkway, where Amazon operates regional offices, is a joint venture of Shorenstein Co., TIER REIT and Endeavor Real Estate Group.

Earlier this summer, the California State Teachers Retirement Systemrefinanced the Frost Bank Tower at 401 Congress Ave. with a $123.2 million loan obtained from New York Life Insurance Co.

The 561,000-square-foot building is one of Austin’s most iconic downtown structures and is about 14 years old.

Another blockbuster refi deal involved a $100 million loan from JPMorgan Chase & Co. secured by Riata Corporate Park in Northwest Austin near the Apple Inc. campus. The property is owned by a joint venture of Accesso Partners and private equity firm Partners Group.

Earlier this year I reported about the refinancing of the Radisson Hotel & Suites at 111 E. Cesar Chavez St. Acore Capital, a private California-based lender, provided $135.4 million for the acquisition and renovation of the property in one of downtown’s most desirable locations. The property is owned by a joint venture of Square Mile Capital Management LLC and hotelier Sydell Group of New York with Yucaipa Cos., a private equity firm in Los Angeles.

Another big ticket refi this summer was for the Westin Austin Downtown at $95 million, according to Real Capital AnalyticsWhite Lodging Services, the Indiana-headquartered hotel developer and operator that is the dominant force in the Austin hotel industry, obtained that loan from PGIM Real Estate, an affiliate of Prudential Financial Inc.

IBC Bank, the Texas bank with a large presence in Austin, provided a loan in the range of $82.5 million to help finance the construction of Music Lane, the big mixed-use project in South Congress on the former site of Doc’s Motorworks. Georgetown-based developer Clark Lyda is heading that project in partnership with Turnbridge Equities, a Miami-based real estate company with an Austin office.

LodgeWorks Partners LP, the developer behind the Archer Hotel Austin at The Domain, recently refinanced the Aloft Austin that it also owns at The Domain. That loan for about $20.5 million was obtained from Emprise Bank, which like LodgeWorks is based in Wichita, Kansas.

The Real Capital Analytics data underscore that most commercial real estate loans are either big or less than $15 million — at least in Austin at this time.

Many of the refis of apartment assets, as might be expected, have been obtained from Fannie Mae and Freddie Mac.

Independent Bank, headquartered in McKinney, Texas, has provided an ample share of the deals this summer, ranging from a $7.1 million loan to local investor David Kahn secured by a retail center at 4009 Marathon Blvd. to a $1.8 million loan to Austin-based Cielo Property Group in association with the development of The Foundry in East Austin.

Source: Austin Business Journal
Jan Buchholz, Senior Staff Writer

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