Dealmaker: 3650 REIT Originates $88M Construction Loan

Balance-sheet lender 3650 REIT, Miami, originated an $87.9 million construction loan for Austin, Texas, condominium property 48 East.

Highland Realty Capital Co-Founder Mike Guterman and Waterloo Real Estate Investments Managing Principal John Ghiselli arranged the financing.

A joint venture between Pearlstone Partners, Austin, and Newgard Development Group, Miami plans to build a 33-story, property with 249 units. The building was designed with smaller units beginning at 456 square feet and averaging 851 square feet to lower the barrier to entry for young professionals and families interested in owning a residence in downtown Austin.

“With this single-source stretch senior loan, the sponsors will now have the flexible capital necessary to execute their unique business plan and meet the needs of the Austin community,” said Jonathan Roth, Co-Founder and Managing Partner at 3650 REIT.

When complete, 48 East will be near 25 restaurants and numerous food trucks and nightlife options on Rainey Street, which was re-zoned into Austin’s central business district in 2004.