Texas growth Fund Project X, LP is providing the EB-5 financing for construction of a 297-unit, 5-story multifamily housing development project in the heart of downtown Eugene and within 1 mile of the University of Oregon campus. The single census tract in which the project site is located qualifies as a Targeted Employment Area (“TEA”) for EB-5 job creation purposes. The Project’s 285 job creation capacity provides 20 qualified EB-5 investors with a 42.5% excess job creation cushion.
With current rental vacancy rates already at 2.5% (per Costar), the City of Eugene has created the “Envision Eugene Plan” to solve for the growing population and lack of sufficient housing. Within a 1-mile radius of our site, 89% of the 24,911 downtown residents are renters. Our Project will be the first dense multifamily product to be delivered after the City’s Envision Eugene Plan was released.
The site is also located within one of the city’s TOD (“Transit Oriented Development”) areas. One of the benefits of this designation is that the parking garage requirement is removed. This will result in substantial project construction cost savings, enabling our product to be delivered at a 25% discount to comparable new product in the city. In addition, the City of Eugene is providing two city-owned parking garages within a block of the site, through which we may provide our tenants with dedicated, discounted annual parking contracts. Additionally, the City operates a free, on-demand electric “Uber-esque” transportation service called EmGo. Finally, tenants of the project will enjoy its “walker’s paradise” walk score of 96.
Less than a 10-minute bus ride away, 23,000 students attend the top-rated Public University in the State of Oregon, a Tier 1 National Public Research University. The University of Oregon is ranked #1 state-wide as the:
- Top Public University
- Best College Campus
- Best Student Life
- Most Diverse College
- Best Colleges for Business, Education, Athletics, Accounting, & Finance
The Project is being built to serve a mix of multi-family and student needs. Within a thriving lifestyle district, offering under-market rents, and with superior amenities in comparison to both old and newly delivered product in the city, we expect a successful product and early-lease up.
Texas Global Equity Partners X, LLC along with the developer Aspen Heights, will deploy $20 million of equity to the $57.5 million of construction costs of the project, representing 35% of the total development budget.