On the rise

Austin's newest tower secures $194 million loan from firm tied to local billionaire

Newest Austin tower secures $194M from firm tied to local billionaire

44 East Avenue rainey street
The building will be among the tallest high-rises in Austin. Rendering courtesy of Intracorp

An investment advisory firm affiliated with Austin billionaire Michael Dell has chipped in money for a loan to build a 49-story condo tower in the Rainey Street District.

Dell’s private investment advisory firm, New York City-based MSD Partners LP, along with Little Rock, Arkansas-based Bank OZK provided a $194 million loan for 44 East Ave., the only condo high-rise under construction in downtown Austin. The project was first announced in October 2018

Dell is founder, chairman, and CEO of Round Rock-based Dell Technologies, whose 2019 revenue exceeded $92 billion.

“Austin’s resilience, like its dynamism, makes the city so enticing, and it’s one of the many reasons Intracorp chose to develop here,” says Don Forsgren, Intracorp’s president and CEO for North America. “It’s also why capital investment in this city continues to make sense even today.”

Intracorp, the real estate developer behind 44 East Ave., announced May 27 that it had secured the loan.

Intracorp broke ground on 44 East Ave. in October 2019. Upon completion in 2022, the tower will contain 309 condos — one- to four- bedroom units along with two penthouses. Unit sizes will be anywhere from more than 500 square feet to more than 3,500 square feet.

Building amenities include:

  • 24-hour concierge
  • Coffee lounge
  • Fitness and yoga studio
  • Yoga lawn
  • Game and club rooms
  • Guest suites
  • Catering kitchen
  • Meeting and event spaces
  • Outdoor pool deck and lounge
  • Two dog parks
  • Zen garden
  • 3,500 square feet of retail space

Close to 50 percent of the units have been sold. Prices range from almost $400,000 to more than $4 million.

“We are pleased to commit to 44 East Ave., a unique condo project being developed by a highly experienced partner in Intracorp,” Adam Piekarski, co-head of real estate credit at MSD Partners, tells GlobeSt.com. “We believe the Austin market will again demonstrate its resilience, as the city and region continue to benefit from the relocation of large numbers of people and companies.”

Page Southerland Page is leading the design work, with superstar architect Michael Hsu overseeing interior design for common areas and amenities. Tulsa, Oklahoma-based Flintco is the general contractor, and Austin-based Urbanspace is handling sales and marketing.