Canyon Partners Real Estate LLC, the investing arm of Canyon Partners, an alternative asset manager with more than $26 billion in assets under management, has formed a joint venture with Cypress Real Estate Advisors Inc. 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 East Riverside submarket, the multifamily project is located 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 close 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.
Canyon noted that 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 roster of corporate expansions and relocations from companies including Apple, Google, Facebook, Amazon, Tesla, Oracle and Indeed.
This investment marks Canyons’ sixth joint venture investing in opportunity zones. In the past five years, the company said that it has invested more than $1.1 billion in debt and equity in multifamily investments nationwide, supporting the financing of approximately $3.4 billion of project capitalization.
Founded in 1991, Canyon Partners Real Estate 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.