Mark IV Scores $86M Loan to Finally Kick off The District

After years of waiting, Round Rock’s long-anticipated mixed-use project The District is officially under construction and fully financed for its first phase.

Developer Mark IV Capital secured an $86 million construction loan to build Phase I of the project, nearly seven years after the Round Rock City Council first approved a development agreement for the site, according to a release first reported by the Austin Business Journal. The California-based firm broke ground in March of last year, marking a major milestone for a development that has steadily grown in scale, scope and cost since its initial approval in 2019.

Originally pitched as a $200 million, 1 million-square-foot project, The District has since ballooned into a nearly 4 million-square-foot campus expected to cost north of $500 million at full build-out, based on prior reporting. The 66-acre site sits near the intersection of I-35 and State Highway 45, adjacent to Dell Technologies’ sprawling Round Rock headquarters — a proximity Mark IV has repeatedly cited as a core selling point.

The construction loan was led by BDT & MSD Partners, with participation from an affiliate of Apollo Global Management. George Smith Partners served as financial advisor and placement agent, advising on capitalization strategy, lender engagement and execution.

The loan will fund vertical construction of Phase I, which centers on luxury multifamily and retail, according to the outlet.

The headline component of the first phase is a seven-story, 316-unit apartment building, constructed with five levels of wood-frame construction atop a two-level concrete podium. Units will include studios, one- and two-bedroom apartments, with more than 23,000 square feet of ground-floor retail, according to the publication. Amenities aim to compete at the high end of the suburban Austin market, including a third-floor pool deck, cold plunge, dry sauna, fitness center and clubhouse lounge.

Phase I also includes a 40,750-square-foot food-and-beverage plaza made up of six standalone buildings, with spaces ranging from 1,500 square feet to nearly 12,000 square feet. Mark IV is pitching the plaza as an early foot-traffic driver and economic catalyst for later phases.

At full build-out, targeted for completion in about 2039, The District is expected to include office, multifamily, retail and hospitality uses and support up to 5,000 jobs.

— Eric Weilbacher