Another East Austin pocket is getting a townhome makeover.
Geyser Group secured a $37.5 million construction loan for an infill housing development in East Austin, its second large for-sale townhome project in the neighborhood in the last year, the Austin Business Journal reported.
The financing will support a two-phase buildout of more than 80 townhomes on an 8-acre site at 5600 Jackie Robinson Street.
The project’s first phase will include 62 townhomes on 5 acres, and the second phase will add 20 to 22 more units across 3 adjacent acres. The financing is in the ballpark of $450,000 per unit.
Prices are expected to start at under $800,000 and top out at under $1 million, Geyser co-founder Matt McDonnell said. Franklin Construction will serve as general contractor.
The project aims to deliver density to a traditionally low-rise, single-family neighborhood. The 78721 ZIP code, just east of the Mueller master-planned community, has been a longtime focus for the firm.
It launched another nearby townhome development, Arden, last year with a $28.5 million construction loan.
Geyser’s latest site sits near Springdale Road, where another infill effort, the stalled Ellie May condos from troubled developer StoryBuilt, previously faltered. Geyser sees an opportunity to answer unmet demand in the area, citing Austin’s population growth and low unemployment as factors appealing to lenders.
“In this capital markets environment, it’s difficult to obtain construction financing on almost any project, residential-related,” said Sean Borger of WelcomeLend, which arranged the financing. There is, however, “a little bit more of an appetite for for-sale product at the moment, but that can be challenging,” he said.
The project further positions Geyser as a key infill player in East Austin’s residential landscape. The company has steadily targeted small- to mid-scale opportunities that increase density without requiring major zoning changes or public incentives.
— Judah Duke
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