SPI Advisory Buys Elan Parkside in Off-Market Deal

Mesa West Capital recently originated $40 million in first mortgage debt to finance the off-market acquisition of a 309-unit apartment complex, Elan Parkside, in Austin.  The buyer is Texas-based SPI Advisory.

The five-year floating rate loan is secured by the class-A multifamily asset located within Highland, the redevelopment of a shuttered regional mall now under construction in central Austin. This is the first apartment complex in the Highland redevelopment district.

The Highland redevelopment is currently expected to include 1,200 residential units, 200 hotel rooms, 800,000 square feet of commercial office space, and 1.3 million square feet of academic space for a new central campus for Austin Community College.

Located at 609 Clayton Ln., Elan Parkside was developed in 2017 by the seller. The six-story property features a mix of studio, one- and two-bedroom floorplans and approximately 5,500 square feet of ground level retail space. The property was 97 percent leased at closing.

The financing is part of a wave of origination activity on multifamily assets for Mesa West Capital. In the past 24 months, Mesa West Capital has originated more than $300 million on multifamily across seven assets in the Austin metro.

“While the pandemic has introduced some instability to the Austin apartment market similar to many other metro areas, we believe the MSA is still poised to be a long-term winner,” said Brian Hirsh, Mesa West Capital vice president who led the origination team. “Elan Parkside’s desirable central Austin location and institutional asset quality make it a great addition to our growing Texas loan portfolio”

Andy Scott and Michael Cosby in the Dallas office of JLL arranged the financing. Newmark’s Patton Jones represented the seller, Greystar,