Pearlstone Partners and ATCO Secure $130 Million in Construction Financing from MSD Partners for Vesper
AUSTIN, Texas, Nov. 18, 2021 /PRNewswire/ -- Austin-based Pearlstone Partners and New York-based ATCO Properties & Management today announced their securing of $130 million in construction financing from MSD Partners, L.P. for Vesper, the 41-story residential high-rise condominiums they are codeveloping at 84 East Avenue in Austin’s dynamic Rainey Street Historic District. Pearlstone and ATCO’s total investment in the project is $165 million. This is MSD Partners’ first financing of a Pearlstone/ATCO project.
“We are delighted to have reached this agreement with MSD Partners, a world-class financial investment firm and one of the most highly respected, principled firms in the industry,” said Pearlstone Partners CEO and Principal Robert Lee. “MSD’s involvement speaks volumes about the strength and vision of our plans for Vesper and represents a major milestone in bringing this development to market.”
“We are excited to commit to the Vesper condo project at 84 East Avenue,” said Adam Piekarski, MSD Partners’ Co-Head of Real Estate Credit. “Codeveloped by our highly experienced partners, Pearlstone Partners LLC and ATCO Properties & Management LLC, this well-designed building will be a significant addition to the Rainey Street Historic District and offer great value. The project also deepens MSD’s long-standing commitment to Austin, which continues to demonstrate extraordinary growth.”
A 41-story residential condominium tower situated on 0.41 acres, Vesper will offer 284 residential homes at an average size of 975 square feet. Anticipated common amenities include a rooftop community clubhouse, sky-deck pool, cabana, outdoor kitchen, fireplace and lounge; a resident fitness studio, featuring private spin and yoga studios; a sky dog park, lawn and dog-washing station; a community courtyard and gathering table; and a coworking space on the ground floor. The rear lobby will feature a public art gallery and mural showcasing works by local artists, with direct pedestrian access to Rainey Street.
Jointly developed by Pearlstone Partners and ATCO, Vesper’s other project partners include STG Design, architect; Wuest Group, civil engineer; McCray & Co., interior designer; dwg., landscape architect; and AECOM Hunt, general contractor. Construction is underway with units delivering in 2024. Vesper will be marketed exclusively by Prospect Real Estate. For more information, visit www.VesperATX.com.
“The most important thing about Vesper is not its graceful design or ample amenities, but the fact that it will bring 284 new-construction, attainable homes to the downtown market,” said Lee. “Housing is Austin’s #1 challenge today, and the biggest demand is in the city’s urban core. Vesper is the latest installment in Pearlstone’s commitment to fulfill that demand, making urban living attainable for a larger segment of the population. We are creating highly desirable home ownership opportunities for the increasing number of people who are tired of commuting and want a walkable lifestyle in the downtown area.”
About Pearlstone Partners
Austin-based Pearlstone Partners is a full-service real estate development firm with more than 100 years of combined experience in the local real estate industry. The company has been responsible for more than $200 million in locally developed real estate and has more than $600 million actively invested in a broad range of commercial projects, including office buildings, condos, multi-family and mixed-use projects in some of Austin’s most desirable areas, with an emphasis on urban properties in pedestrian-oriented locations. Pearlstone Partners engages in the economic development of Central Texas by creating high-quality, profitable real estate development projects. With experience managing every stage of the property development life cycle, Pearlstone is uniquely qualified to execute projects from concept through completion. For more information, visit https://www.pearlstonepartners.com.
ATCO is a closely held real estate investment and ownership platform deploying capital in select cities across the United States, with a particular emphasis on urban properties in pedestrian-oriented locations. For over nine decades, ATCO has owned, managed, and developed a diverse real estate portfolio, primarily in and around New York City, and provided a range of services to other real estate owners. ATCO’s real estate operating company includes investment management, development, marketing, architectural design and construction management, property management and commercial and residential brokerage. ATCO’s investment and development portfolio consists of projects in excess of $2.2 billion in gross asset value.
About MSD Partners L.P.
MSD Partners L.P. is a U.S. Securities and Exchange Commission-registered investment adviser that utilizes a multidisciplinary strategy focused on maximizing long-term capital appreciation by making investments across the globe in its core areas of expertise — credit, real estate, private capital and growth. MSD Partners was formed in 2009 by the partners of MSD Capital L.P., which was originally established in 1998 and is the family investment office for Dell Technologies Founder and CEO Michael Dell. Mr. Dell and his family are substantial clients of MSD Partners, which operates from offices in New York City, N.Y.; Santa Monica, Calif.; and West Palm Beach, Fla. For further information about MSD Partners, please visit msdpartners.com.
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SOURCE Pearlstone Partners