Cottonwood Group, a private equity real estate investment firm, has closed a $105 million senior construction loan to support the development of a 223,500-square-foot life sciences facility in EastVillage, a growing 425-acre mixed-use innovation district in the northeast portion of the city.
The project, which is 100 percent pre-leased to molecular diagnostics company BillionToOne, Inc., is being delivered through a partnership between Reger Holdings and Tarlton Properties, a leading life sciences developer and operator based in the San Francisco Bay Area.
“After studying the space over an extended period and reviewing multiple transactions, this project stood out,” said Mark Green, chief investment officer at Cottonwood. “It combines an essential facility for BillionToOne, experienced development partners, and an Austin market we know well with durable demand.”
Located at 3600 Breakthrough Loop, the facility is expected to serve as a cornerstone of BillionToOne’s next phase of growth, enabling the company to expand its work in non-invasive genetic testing for prenatal and oncology applications. Upon completion, the facility is projected to support up to 1,000 new jobs in the region.
“This facility is essential to BillionToOne’s continued growth,” said John Tarlton, president and CEO of Tarlton Properties. “In a challenging financing market, Cottonwood’s creative, solutions-oriented approach helped us meet the tenant’s real estate schedule.”
The loan marks Cottonwood’s latest investment in the EastVillage development. It follows a $284 million senior bridge loan the firm closed last year to recapitalize key assets across the master-planned community.
“We’re excited to further our partnership with Cottonwood through this milestone project,” said Gordon Reger, co-founder and CEO of Reger Holdings. “BillionToOne’s presence further solidifies northeast Austin as a commercial and life sciences hub and advances our long-term vision for EastVillage.”
Edited from news release.
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