AUSTIN, TX - Forestar Group Inc. announced it has formed a multifamily venture with Canyon-Johnson Urban Funds (CJUF) for development of a downtown multifamily community located in Austin, Texas. The project, to be called Eleven, will be located at the southeast corner of East 11th Street and Interstate 35.
Eleven will consist of 257 units in a four-story podium style building above a two-story parking structure. The location affords spectacular views of the city's downtown skyline and the Texas State Capitol, along with convenient access to shopping, dining and the many outdoor and lifestyle activities urban Austin has to offer. Individual units will be available in a variety of studio, loft, one and two-bedroom floor plans, each featuring high quality interior finishes. Common-area amenities will include a resort-style pool, rooftop deck, courtyard with outdoor living area, upscale clubhouse, executive business center, and state-of-the-art fitness facilities. Eleven has been designed to obtain certification by the Austin Energy Green Building program.
The City of Austin in conjunction with the Austin Urban Renewal Agency has invested nearly $20 million into the East 11th Street neighborhood over many years, with the intention of jumpstarting new construction from private developers. The Eleven apartments, along with several new mixed use retail and office buildings, restoration projects and city investment will contribute to the area turning the corner into a growing district.
Forestar's multifamily team brings decades of experience developing and building exceptional residential units. "We look forward to working with the Canyon-Johnson team to create a successful community on this unique site," notes Tom Etheredge, Executive Vice President -- Multifamily Operations. "This investment is consistent with our multifamily business strategy, which is to leverage our experienced team and corporate resources, while partnering with outside financial capital to create value for our shareholders, partners and community stakeholders. The design of Eleven, which reflects Forestar's commitment to sustainable building practices, high-quality construction and extensive lifestyle amenities, will deliver our residents the choices that allow them to live with purpose."
"For Austin's East 11th Street neighborhood, Eleven is a transformational project that is in line with our commitment to triple bottom line investing," said CJUF Managing Partner and CEO Bobby Turner. "We look forward to helping create new jobs and to providing high-quality, affordable housing options for local residents who want to live close to Austin's central business district."
"We are also excited to partner with such an experienced local developer -- Forestar has a long track record of developing successful projects," said CJUF Managing Director Neville Rhone, who is responsible for Texas investments.
BGO Architects, an award-winning architectural firm, designed Eleven and the interior design is created by Leslie Fossler Interiors. Groundbreaking on the Eleven site will begin within 30 days.
Forestar Group Inc. operates in three business segments: mineral resources, real estate and fiber resources. At the end of the first quarter 2012, the real estate segment owns directly or through ventures over 146,000 acres of real estate located in nine states and twelve markets in the U.S. The real estate segment has 16 real estate projects representing approximately 27,600 acres currently in the entitlement process, and 73 entitled, developed and under development projects in seven states and eleven markets encompassing over 16,000 acres, comprised of almost 27,000 residential lots and over 2,400 commercial acres. The mineral resources segment manages approximately 594,000 net acres of oil and gas mineral interests located principally in Texas, Louisiana, Alabama, and Georgia. Also included in the mineral resources segment is a 45% nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes from approximately 1.4 million acres in Texas, Louisiana, Georgia and Alabama and about 17,800 acres of groundwater leases in central Texas. The fiber resources segment includes the sale of wood fiber and management of our recreational leases.
The Canyon-Johnson Urban Fund is one of the country's largest private real estate funds focused on the development of urban properties in underserved neighborhoods. Canyon Capital Realty Advisors and Earvin "Magic" Johnson's Magic Johnson Enterprises joined forces to raise a series of funds to identify, enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically diverse urban communities. Fundamental to Canyon-Johnson's investment thesis is its commitment to a "triple bottom line" philosophy of achieving superior financial results, fostering opportunities within urban communities, and embracing environmental responsibility. With nearly $2 billion in committed equity capital, the funds are positioned to facilitate more than $8 billion in development and revitalization in major U.S. metropolitan areas. Canyon Capital Realty Advisors is the real estate direct investing arm of Canyon Partners. Canyon and its affiliates are investment management firms and registered investment advisors headquartered in Los Angeles, California, with approximately $18.5 billion in assets under management.