Reger Secures Nearly $279M in Construction Financing for Downtown Tower, Mixed-use Project

NY-based Madison Realty Capital joins as debt partner.

Reger Holdings LLC, a New York-based real estate developer, has secured $278.5 million in construction financing from Madison Realty Capital LP for projects in Austin. 

The financing is for The Linden, a condominium high-rise planned at 313 W. 17th St., and various elements within EastVillage, an ambitious mixed-use development planned for East Parmer Lane. 

Madison Realty’s loan makes up the debt investment, while Reger Holdings provided the equity for both major developments. 

The Linden is being co-developed by Reger and Austin-based DEN Property Group. It will combine 117 condos with about 5,000 square feet of retail and art gallery space in 28- story tower. 

Bartlett Cocke, the general contractor for the project, is working on scheduling demolition of the current building and will break ground as soon as is feasible, according to Reger Holdings CEO Gordon Reger. He said The Linden will likely be completed in late 2023 or early 2024. 

Meanwhile, Reger is positioning the $1 billion-plusEastVillage as prime real estate for major tech employers as well as their workers.

“The city is facing an undersupply of the high-quality housing options that employees in the Parmer Lane tech corridor demand,” Josh Zegen, co-founder of New York-based Madison Realty Capital, said in a statement.

At full buildout, EastVillage is expected to host 2,000multifamily units, 466 single-family homes, around 223,000 square feet of retail space, 810,000 square feet of office space, multiple hotels and restaurants as well as a village green and a wooded preserve on 425 acres in Northeast Austin. KVUE reported it’ll be about seven years before the development is finally complete. Due to the scale of the project, developers will tap multiple contractors to help complete construction.

“It’s a very large project for us,” Reger said. “We’ve done multiple mixed-use projects over the years, some pretty big projects. But nothing to this scale.”

EastVillage is set to break ground June 22. A previous groundbreaking ceremony was postponed because of the rain. The first phase of construction will include 143,000 square feet of retail and restaurant space and the communal outdoor space. 

The projects are breaking ground amid a nationwide housing materials shortage and resulting price spike. However, Reger said he doesn’t expect the shortages to affect the projects in any meaningful way. 

“There are definitely added costs built into our budgets,” Reger said. “I’m sure we’ll have some struggles long away getting all our material timely, but overall, I don’t anticipate it to have any major impact on us.” 

Buffalo Business First recently reported that Reger is involved with a $1 billion mixed-use project in the Austin suburb of Cedar Park, and highlighted the developer’s plans in Tampa, Florida and Portland, Maine. 

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