By Mario Marroquin
Dallas-based real estate investment firm Lincoln Property
Group and Kairoi Residential of San Antonio, Texas, secured a $675 million
construction loan for their Waterline development project in downtown Austin
this week.
Construction financing, according to Commercial Observer,
was provided by Blackstone Property Trust and will fund a 3.3-acre development
at 98 Red River St., consisting of 352 luxury apartments, 700,000 square feet
of office space and a 251-room hotel.
The site is located near the Colorado River and directly across
from the Austin Convention Center. Canada’s PSP Investments is the main equity
partner in the project.
“We are pleased to be increasing our portfolio exposure to
high conviction markets and green assets in one of the fastest-growing cities
in the United States,” Carole Guérin, managing director, head of Americas real estate
investments, at PSP Investments. “This investment provides significant upside
potential as the city of Austin continues its expansion to become a top-tier U.S.
market that offers high quality of life, a supportive business environment,
exciting employment opportunities, and a hotbed for technology and innovation.”
Lincoln Property Group and Kairoi held a ceremonial
groundbreaking event at the site of the Waterline project on September 6. The
project is slated to become the tallest high-rise in Austin by 2026 and will
include 24,000 square feet of retail and restaurant space at ground level.
News of the Waterline construction financing comes one week after
PSP Investments’ new president and CEO, Deborah Orida, took charge of the $175 billion
AUM pension fund.
PSP Investments has been busy – it recently struck a $500
million deal with Chicago-based real estate investment firm Bridge Industrial to
develop urban infill warehousing in core markets in the U.S.