Bank OZK will provide a $300 million loan to help finance the construction of a 48-story tower in downtown Austin.
Lincoln Property Company, Phoenix Property Co. and equity partner DivcoWest released plans earlier this month to move forward with construction after signing a lease with a major, undisclosed tenant. The 833,000-square-foot highrise off Fourth and Guadalupe streets is estimated to cost $500 million, according to a news release.
Little Rock, Arkansas-based Bank OZK has a reputation as a prolific lender for large construction projects and other debts, including deals in the New York market. Its loan for The Republic is the second-largest construction loan issued in recent months in Austin, the firm said in a news release, behind Blackstone’s $650 million loan to another Lincoln project that will be the tallest tower in Austin.
A rendering of The Republic tower (Neoscape)
After years of planning, construction on The Republic will begin later this quarter. Eastdil Secured is brokering the financing, according to the release.
Floor plates will average 29,000 square feet, and each floor will have a private outdoor terrace. Design plans call for a 20,000-square-foot public plaza, and restaurant and retail space.
Harvey-Cleary is the general contractor, and architecture firms HKS and Duda Paine Architects are signed on to the project as architect of record and design architect, respectively. Duda Paine Architects is known for its design work on the iconic Frost Bank Tower in downtown Austin.
Lincoln and Phoenix — co-founded by Blake Pogue and Jason Runnels — bought the site’s ground lease in 2017 in a deal worth $430 million. Prior to that, Travis County purchased the land for $21.8 million with plans to build a courthouse, which voters did not approve.
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