AUSTIN-With $50.15 million of construction financing in place, High Street Residential is ready to begin vertical work on the 192-unit Shore Condominiums. The 22-story tower, already 90% sold, will start to come out of the ground within days.
High Street, a wholly owned subsidiary of Dallas-based Trammell Crow Co., started to scrape the half city block at 602 Davis St. in late June. The 80% loan-to-value financing has just been cleared in a three-year package at an interest-only rate priced in the low 3% over the one-month Libor, Jeff Teetsel, vice president and regional manger in the Southwest for the Tustin, CA-based Fremont Investment & Loan, tells GlobeSt.com.
"In today's residential market, the strength of the presales would support that the market in Austin is stronger than many other cities," Teetsel says. "This one is selling out relatively quickly." On average, condo buyers are paying $400 per sf.
The tower, set to deliver in 18 months, has units ranging from 714 sf to 2,498 sf in 43 floor plans. The buy-in cost goes from $150,000 to $1.5 million. Al Coker & Associates of Austin is marketing the tower.
Fremont's Erin Wallets, a senior loan associate in Dallas, spent six months working out the financing terms, according to Teetsel, who says the deal was put to bed within two months of the development team's "earnest" push to advance the project. He says the plan is to apply 100% of all net proceeds to the loan until it's paid off. "It will be paid off in a short time," he adds.
WDG Architectures Inc.'s Dallas team designed the Shore for a lakefront development site, bought in May by TCC, with Downtown views. The Shore will include a five-story parking garage with direct access to residences and a terrace floor with resort-comparable amenities. Houston-based Harvey-Cleary Builders Inc. is the general contractor.
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