About this Property in Manchaca, TX – Vertical Construction near Austin

SW of Austin in Manchaca, TX — Vertical Construction

Loan Amount: $3,810,000
Loan Type: Refinance + Vertical Construction Financing
Property Type: Entitled industrial/office project (±30,000 SF across six buildings)
Use of Funds: Refinance existing debt, fund vertical construction, capitalize interest reserve, and cover construction-related soft and hard costs

Overview

Enact Partners provided financing for a multi-building industrial development in Manchaca, a high-growth area just south of Austin. The sponsors have been steadily advancing this project from initial acquisition and entitlement through site work and now into vertical construction.

The relationship began with a $1.2 million bridge refinance that allowed the sponsors to consolidate existing debt, complete entitlement steps, and prepare the site for development. As the project progressed and market demand strengthened, Enact increased the loan to $3.81 million to support the vertical construction phase.

The property includes an existing ±5,000 SF income-producing industrial building, with five additional buildings moving into development. The sponsors have already secured presale contracts covering roughly 50 percent of the future space, demonstrating strong early market response and giving the project clear forward momentum.

Loan Structure

The updated $3,810,000 loan provides the capital needed to move the project confidently into vertical construction:

• Loan Proceeds: Payoff of existing balances, funding for vertical improvements, interest reserve, and project costs
• Interest Reserve: A full 12-month interest reserve to support the project through the construction timeline
• Term: 12-month bridge loan with extension flexibility
• Draw Process: Construction draws follow verified progress, ensuring funding aligns with real work completed and keeping the project moving efficiently

Austin-Area Dynamics

Manchaca is positioned within one of the Austin MSA’s most active industrial corridors, supported by businesses expanding into service, trades, and small-bay industrial space. Strong absorption trends and limited supply continue to shape demand in this submarket. The project’s design and location align well with what local users are seeking, and the presale commitments on half of the planned space provide an early indication of market fit.

Sponsorship

The sponsors bring a mix of development experience, operational strength, and long-standing familiarity with the Austin area. Their hands-on approach to entitlement, design, and site planning has helped the project progress efficiently. They also maintain internal project management and leasing support, ensuring steady communication and coordination as the project advances.

Exit Strategy and Expected Outcome

The primary exit strategy is a refinance into longer-term financing once vertical construction is completed and additional presale and leasing activity continues. With 50 percent of the project already under contract for presales, the sponsors are entering construction with meaningful commitments in place and a strong path toward project completion.

Enact’s financing is supporting the transition from early entitlement work into a multi-building industrial development designed to meet growing business needs in the Austin area.