The development group behind a large multifamily property near the Austin-Bergstrom International Airport has secured a substantial financing deal.
Goldman Sachs Alternatives has committed $55.5 million in refinancing for Urban East, a 381-unit apartment community at 6400 East Riverside Drive in East Austin, the Austin Business Journal reported. The funding comes to $144,000 per unit.
The financing was arranged by JLL on behalf of the development team, a partnership between Battery Global Advisors, the Housing Authority of the City of Austin, River City Capital Partners and LDG Development. The project, delivered last year, includes 191 units — about half — that are priced for tenants earning 80 percent of the area median income.
Floor plans at the 7.3-acre Urban East complex, designed by Austin-based architect Davies Collaborative, include studio, one-, two-, and three-bedroom units ranging from 600 to 1,450 square feet. Apartments at the complex feature private balconies and stainless steel appliances. Amenities include a game room with a bowling alley, two swimming pools, a fitness center, a rooftop lounge and a dog park.
Early plans for the project included office and retail components, but they were eventually revised during the pandemic to address growing residential needs.
The Austin multifamily market is experiencing a significant drop in rents due to an oversupply of apartment units. Southeast Austin, where Urban East is located, saw a 12.8 percent decrease in rents over the past year, according to Madera Residential.
This oversupply has led to Austin having one of the lowest occupancy rates among Sun Belt markets, standing at 86 percent in January, and experts predict that the trend of declining rents will continue, offering renters more negotiating power.
There are still new multifamily projects underway, such as OHT Partners’ 360-unit development in East Austin, indicating ongoing interest in the market.
— Andrew Terrell
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