Canyon Partners Real Estate LLC (“Canyon“) today announced its joint venture with Cypress Real Estate Advisors, Inc. (“Cypress“) for the ground-up development of a 263-unit, mid-rise multifamily community in Austin, Texas. Canyon invested $23.9 million of equity in the project, which is located in a qualified opportunity zone, and broke ground in December 2020.
Located in the high-growth East Riverside submarket, the multifamily project will offer new housing near several major employers, including the new Oracle campus and the recently announced Tesla Gigafactory, as well as educational institutions, retail amenities and public parks. The project is central to Downtown Austin, the Austin-Bergstrom International Airport, East Austin and is located one block from a planned light rail station connecting future residents to the Austin central business district and airport. The station development is part of an initiative approved by voters to expand Austin’s light rail system to serve its growing population.
“Austin’s expanding technology sector has continued to attract new residents, particularly from the Millennial age cohort, and the area needs more affordable housing options as a result,” said Robin Potts, Canyon’s Co-Head of Real Estate. “We are excited to work alongside an experienced partner like Cypress to help meet the Austin community’s housing needs and continue the area’s economic growth to attract even more new businesses and residents.”
The Austin market has experienced significant growth in recent years due to its business-friendly environment, educated labor force and attractive lifestyle amenities. The area has drawn a large roster of corporate expansions and relocations from companies including Apple, Google, Facebook, Amazon, Tesla, Oracle and Indeed. As such, the Austin economy has fared well through the COVID-19 impact and is well-positioned for continued growth in the coming years which is creating demand for new housing at all income levels.
This investment marks Canyons’ sixth joint venture investing in opportunity zones. In the past five years, Canyon has invested over $1.1 billion in debt and equity in multifamily investments nationwide, supporting the financing of approximately $3.4 billion of project capitalization.
About Canyon Partners Real Estate LLC
Founded in 1991, Canyon Partners Real Estate LLC® (“Canyon“) is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with over $26 billion in assets under management. Over the last ten years, Canyon has invested more than $5.5 billion of debt and equity capital across approximately 200 transactions capitalizing $14.6 billion of real estate assets, focusing on debt, value add, and opportunistic strategies. With 29 years of experience, Canyon has established a broad menu of investment capabilities spanning property types, US regions, and project stages (including development, transitional, and distressed/workouts). For more information visit: www.canyonpartners.com