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3650 REIT Originates $87.9 Million Construction Loan for Luxury Condominium Project in Austin

AUSTIN, Texas--(BUSINESS WIRE)--

3650 REIT, a balance-sheet lender focused on creating long-term relationships by originating, servicing and asset managing long- and short-term fixed-rate commercial real estate loans through maturity, has originated an $87.9 million construction loan to a joint venture between Pearlstone Partners and Newgard Development Group for the development of 48 East, a 33-story, state-of-the-art property located in Austin, Texas.

48 East will feature 249 luxury units, 274 parking spaces across nine levels, and high-end amenities including a rooftop pool, viewing deck, and modern fitness facility. The building has been strategically 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.

“This loan afforded us the opportunity to provide capital to a strong joint-venture sponsorship encompassing both local market knowledge and high-rise expertise to develop this transformative project in Central Austin,” said Jonathan Roth, Co-Founder and Managing Partner at 3650 REIT. “The affordability of the units at 48 East in tandem with its superior amenities and prime location near Rainey Street and Lady Bird Lake, as well diverse dining and nightlife options, should help generate substantial demand for units at the property.”

Located just steps from Rainey Street, which is a popular destination for locals featuring over 25 restaurants, food trucks and nightlife options packed densely along 1,200 square feet, 48 East will accommodate the lifestyles of young professionals. Rainey Street was re-zoned as part of Austin’s central business district in 2004, since becoming a prominent destination for tourists and locals alike. Austin provides ample opportunities for young professionals, and is home to several major corporations including Dell, Inc., Whole Foods Market, and ABM Industries.

“3650 REIT’s real estate expertise and ability to provide flexible financing solutions, combined with our strategic partnership with Newgard and specialization in Austin will enable us to bring to market a first-class project that will resonate with and meet the needs of the local market,” said Robert Lee, CEO at Pearlstone Partners.

Newgard Development Group President Harvey Hernandez stated, “Securing this loan allows us to advance our plan to create a state-of-the-art property in a prime location that will grace Austin for generations to come. We are pleased to once again partner with the experienced finance professionals at 3650 REIT, who understand our unique needs and are serious about building strong, long-term relationships with their clients.”

Mike Guterman at Highland Realty Capital, a leading California-based commercial real estate finance firm, was responsible for arranging the financing along with John Ghiselli from Waterloo Real Estate Investments.

About 3650 REIT

3650 (“Thirty-Six Fifty”) REIT is a balance-sheet lender focused on creating long-term relationships by originating, servicing and asset managing long- and short-term fixed-rate commercial real estate loans through maturity. 3650 REIT’s highly differentiated lending process, national scale and vertically integrated platform enable it to deliver tailored financing solutions, high-touch service and reliable, customer-focused outcomes. Co-Founders and Managing Partners Toby Cobb, Justin Kennedy and Jonathan Roth have played leading roles in the evolution of the CRE debt markets with track records of success across CRE lending, mortgage banking, capital markets, loan servicing and distressed credit management. Headquartered in Miami, Florida with offices in New York, Chicago, Dallas and Los Angeles, 3650 REIT is well positioned to lend on properties located throughout the country. For more information, visit: www.3650REIT.com.

About Pearlstone Partners

Pearlstone Partners is a real estate development firm with over 100 years of combined experience in the Austin market. The company has been responsible for more than $200 million in locally developed real estate and has more than $400 million actively invested. Pearlstone engages in the economic development of the Central Texas area by creating high-quality, profitable real estate development projects. Pearlstone develops investment opportunities by expanding the local market’s real estate offerings, and sustains a long-term market position for themselves and their clients. For more information, visit www.pearlstonepartners.com.

About Newgard Development Group

Founded by Harvey Hernandez, Newgard’s highly skilled associates bring more than 50 years of combined experience in development, design, marketing and construction. Hallmarks of the Newgard approach to forward-thinking development include innovative luxury buildings in desirable, centrally located neighborhoods, pedestrian-oriented lifestyles and cutting edge amenities. Property designs reflect a commitment to relevant architectural detailing and the attitudes of residents and business users. The Newgard dedication to quality extends to its professional construction team, insuring superior attention to detail, exceptional finishes and timely completion. Newgard’s recent projects include Gale Residences Ft. Lauderdale Beach, BrickellHouse, Centro, One Flagler among others. Learn more at www.newgardgroup.com.

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