AUSTIN-Following its recent acquisition of the 22-acre Concordia University campus, a local developer is putting plans on the board for a $500-million, mixed-use development. Slated to get underway in early 2008, the site has been laid out for up to 2.75 million sf of high-density, mixed-use product.
Michael Hooks, vice president of Capmark Finance Inc.'s Austin office, says East Avenue Investment Group's plans aren't etched in stone yet because no major development can take place until Concordia University officially moves to its new campus at Schlumberger Ltd.'s former 250-acre campus at 2311 W. Rundberg Lane in northwest Austin. The existing Concordia campus, with its main address at 3400 Interstate 35 North, totals 300,000 sf.
"One or two of those buildings being discussed have historic value. But once Concordia is gone, the majority of the campus will be demolished and new buildings put up," says Hooks, whose firm arranged acquisition and construction financing for the project.
Hooks tells GlobeSt.com that the interesting aspect of the development was its rezoning from an educational purpose to a development with retail, residential, hospitality and office space. As of now, the plan calls for 1,450 residential units, 545,000 sf of commercial space and 250 hotel rooms.
"The borrower spent a lot of time working in conjunction with local neighborhoods to gain their support," Hooks adds. "He wanted to make sure there was a project they'd be able to support from an aesthetic and size standpoint." As a result, Andy Sarwal, East Avenue's principal, was able to get clearance for a project that's nine times larger than the existing campus.
Although the major construction won't begin for awhile, some infrastructure improvements are on tap during the next year, but they aren't expected to interfere with Concordia's operations. The entire project has a three-to-five year build-out time.
Hooks says Sarwal knows what he'd like to see, but he's building in enough flexibility to the plan for different uses. "We managed to find him a loan that achieved the highest value for the property, even if in six months, he'll be doing something different than he thought now," Hooks adds.
Hooks can't discuss loan specifics, except to say it's a three-year, floating rate loan at a competitive interest rate. Lehman Brothers Inc. of New York City funded the loan.
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