Austin, Texas, September 20, 2025
News Summary
A real estate private equity firm has provided a $105 million construction loan to fund a build‑to‑suit life‑sciences facility in northeast Austin. The biotech tenant will occupy roughly 220,000–223,500 square feet within the 425‑acre EastVillage ATX mixed‑use development. The project, co‑arranged by Newmark and CBRE and delivered by a Buffalo master developer with a San Francisco development partner, is expected to add specialized lab, manufacturing and office space and support about 1,000 jobs. With construction financing in place, site work, permitting and fit‑out are the next steps that will expand Austin’s life‑sciences inventory.
Cottonwood Group Backs $105M Build‑to‑Suit Life‑Sciences Project in Austin’s EastVillage
Key development: A $105 million construction loan has been provided for a large, build‑to‑suit life‑sciences facility in Austin, Texas. The financing was arranged by a real estate private equity firm with offices in Boston, Los Angeles and New York, and the loan was co‑arranged by two major capital markets teams. The project will house a biotechnology company as its tenant and sits inside a 425‑acre mixed‑use development on Austin’s northeast side. The facility is expected to support roughly 1,000 new jobs and is slated for completion in early 2027.
What the financing covers
The construction loan totals $105,000,000. The lender is a national private equity real estate firm, and the loan was co‑arranged through two national brokerage capital markets groups. The financing is earmarked for a build‑to‑suit life‑sciences facility that will be developed by a partnership between a Buffalo‑based master developer of the larger site and a San Francisco‑based development partner. The tenant and end user is a biotechnology company that previously announced plans to locate in Austin, and the project is sited within a master‑planned, mixed‑use community on Parmer Lane near an existing semiconductor campus.
Size, timing and jobs
The lender’s announcement lists the project as roughly 223,500 square feet. Separately, earlier reporting tied to the tenant gave a slightly smaller figure of about 220,000 square feet. This small difference likely reflects rounding or scope definitions—such as gross building area versus leased lab and support space—and should be confirmed with project stakeholders for precise leasing and construction plans. Construction is moving forward with a projected completion in early 2027, and the development is expected to create or support about 1,000 jobs once the facility is operational.
Site and development partners
The facility will be built inside a 425‑acre mixed‑use development on Austin’s northeast side. The master developer of that larger community is based in Buffalo and teamed up with a San Francisco‑based development partner to deliver the life‑sciences building. The site’s location on Parmer Lane places it near major semiconductor operations, which shapes local infrastructure and labor market dynamics relevant to lab and advanced manufacturing tenants.
Market backdrop and local ecosystem
The project comes as Austin’s bio and health sector continues to expand. A recent regional bio and health analysis found more than 1,100 companies in the local ecosystem employing about 21,000 people and carrying an estimated valuation near $42 billion. Venture capital flows into the sector have been strong over recent years, with about $3.5 billion raised over the past five years in the region—placing the city among the nation’s top 10 for bio and health funding. The same analysis also estimates nearly 9.6 million square feet of bio and health space in the market, and highlights growth driven by local startups and small‑to‑mid‑sized firms rather than only by relocating large biopharma companies.
At the national level, a life‑sciences market review points to rapid adoption of AI in research and drug discovery as a major opportunity, while also noting elevated vacancy in some major markets and a recent uptick in R&D capital markets investment sales. Those dynamics suggest that new, purpose‑built lab space in growing markets like Austin can attract tenants seeking modern, technically capable facilities.
Local support infrastructure
Local resources for early‑stage life sciences firms include shared lab incubators operated by community partners that offer shared bench space and support services for startups. Those facilities are part of a broader strategy to nurture home‑grown companies and help bridge the gap between academic research and commercial products.
What remains to be confirmed
- Final square‑footage measurement for the building (announced figures differ slightly: 223,500 sq ft vs 220,000 sq ft).
- Detailed construction and tenant fit‑out timelines, including phased occupancy plans if any.
- Exact job mix and timing for hires tied to research, labs, manufacturing, and support roles.
- Any public incentives or local approvals associated with the project.
Because public filings and announcements sometimes use rounded numbers or different measurement standards, stakeholders typically verify final area and job figures at later stages of permitting or lease execution. Project watchers and local workforce planners will be tracking the build‑out closely given the number of jobs and the project’s potential to deepen the city’s life‑sciences cluster.
Bottom line
The new construction loan advances a major build‑to‑suit life‑sciences facility in northeast Austin that will add hundreds of thousands of square feet of purpose‑built lab and support space, aim to create about 1,000 jobs, and contribute to a regional effort to grow a competitive bio and health economy. The project’s timing and scale make it one of the larger recent commitments to life‑sciences real estate in the area and a notable data point for anyone tracking the local cluster’s growth.
FAQ
Who is lending money for the project?
A U.S. real estate private equity firm provided the construction loan. The loan was co‑arranged by two national capital markets teams.
How large is the new facility?
Public material lists the building size as approximately 223,500 square feet, while earlier reporting referenced about 220,000 square feet. The difference likely reflects rounding or different measurement conventions.
When will the project be completed?
The project is projected to be completed in early 2027, subject to construction schedules and permitting.
How many jobs will the facility create?
The facility is expected to support or create approximately 1,000 jobs, including research, technical, and support positions.
Where exactly is the site located?
The site is inside a 425‑acre mixed‑use development on Austin’s northeast side, located near a major semiconductor campus on Parmer Lane.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “Who is lending money for the project?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A U.S. real estate private equity firm provided the construction loan. The loan was co-arranged by two national capital markets teams.”
}
},
{
“@type”: “Question”,
“name”: “How large is the new facility?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Public material lists the building size as approximately 223,500 square feet, while earlier reporting referenced about 220,000 square feet. The difference likely reflects rounding or different measurement conventions.”
}
},
{
“@type”: “Question”,
“name”: “When will the project be completed?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The project is projected to be completed in early 2027, subject to construction schedules and permitting.”
}
},
{
“@type”: “Question”,
“name”: “How many jobs will the facility create?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The facility is expected to support or create approximately 1,000 jobs, including research, technical, and support positions.”
}
},
{
“@type”: “Question”,
“name”: “Where exactly is the site located?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The site is inside a 425-acre mixed-use development on Austin’s northeast side, located near a major semiconductor campus on Parmer Lane.”
}
}
]
}
Key project features
| Feature | Detail |
|---|---|
| Loan amount | $105,000,000 (construction loan) |
| Lender | Real estate private equity firm with Boston / Los Angeles / New York offices |
| Co‑arrangers | Two national capital markets teams |
| Tenant / End user | Biotechnology company (build‑to‑suit) |
| Project size | 223,500 sq ft (announced); alternate figure reported at 220,000 sq ft |
| Site | Inside a 425‑acre mixed‑use development on Austin’s northeast side |
| Developers | Buffalo‑based master developer partnered with a San Francisco‑based development partner |
| Projected jobs | About 1,000 |
| Projected completion | Early 2027 |
Deeper Dive: News & Info About This Topic
Additional Resources
- ReBusiness Online: Cottonwood Group provides $105M construction loan for Austin life‑sciences campus
- Wikipedia: Life science
- Austin Monitor: Life‑sciences report sees strong job, real‑estate growth throughout Austin (2025)
- Google Search: Austin life sciences report 2025
- Cushman & Wakefield: Life Science Report
- Google Scholar: life science real estate report Austin 2025
- Community Impact: Living in the future — surge in life‑sciences sector paying off for Austin‑area economy (2025)
- Encyclopedia Britannica: Austin life sciences economy
- ConnectCRE: Tarlton building 223k SF Austin life‑science facility
- Google News: Tarlton building Austin life science
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
