A massive mixed-use development in Northeast Austin landed financing for its first life sciences building, with one of the sector’s hottest startups signed on as the anchor tenant.
New York-based Reger Holdings secured a $75 million note-on-note financing to back a $105 million construction loan for the first lab at EastVillage, a 425-acre project, the Austin Business Journal reported.
The 223,500-square-foot building has been fully pre-leased to Menlo Park, California-based BillionToOne, a molecular diagnostics company that hit unicorn status last year after raising $130 million in a Series D round.
California-based Tarlton Properties is developing six life sciences buildings at the site, at 3600 Breakthrough Loop along Parmer Lane. At full buildout, EastVillage is slated to include a 1.5 million-square-foot health and life sciences campus, 350,000 square feet of retail and restaurants, hotels, entertainment space, 2,500 multifamily units and more than 450 single-family homes.
CBRE’s Zack Holderman, Jesse Greshin, Bob Ybarra, Jim Korinek and Doug Birrell arranged the financing. Holderman called the structure a win in what he described as a “challenged life science construction environment,” noting that the deal provided more than 70 percent loan-to-cost in a sector where capital has tightened.
Construction on the life sciences campus started a year ago, with BillionToOne expected to move into its building by late 2026. A timeline for the other five buildings hasn’t been announced, though Gordon Reger, CEO of Reger Holdings, has said full buildout of EastVillage is seven to 10 years away.
Founded in 2016, BillionToOne develops DNA-based diagnostic tests to detect a range of health problems. Its rapid ascent to unicorn status underscores why developers and lenders still see opportunity in the lab sector despite market headwinds.
The project marks another swing at scaling up its life sciences ecosystem in Austin, which has lagged traditional biotech hubs. If EastVillage can deliver on its vision, it could transform a suburban stretch of Parmer Lane into a dense cluster of labs, apartments and retail.— Eric Weilbacher
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