Shady Lane Apartments

BCP is the JV Equity Sponsor for Shady Lane Apartments, a new 290-unit multifamily development located in a prime East Austin Opportunity Zone.

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The project benefits from three complementary programs to mitigate risk and maximize returns.

1. Capital Gains Tax Exemption - Qualified Opportunity Zone
   • 100% elimination of all tax from gains if held for ten years
   • Tax deferral on current capital gains (both short & long-term) reinvested in a QOZ until Dec. 31st, 2026.
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2. Fully Permitted, Shovel Ready, HUD 221(d)4 Financing Secured
   • Fully entitled, permitted, and ready for construction with the multifamily industry’s most favorable terms
   • Lower rate, favorable leverage, and higher amortization (increased cash flow)
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3. 100% Property Tax Exemption
   • 100% tax property tax exemption (enhanced NOI)
   • 75% sales tax savings on materials (lower cost basis)
   • Regulatory requirements include subsidized rents for certain units based on Area Median Income (AMI).
   • Properties with reduced rent maintain higher occupancy.

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Location Strengths

• Govalle Neighborhood Park
  • The project overlooks Govalle Neighborhood Park which recently underwent a large renovation including the addition of a new pool.
• Walnut Creek Hike and Bike Trail
  • The project is directly connected to the 9-mile long, fully paved, Walnut Creek Hike and Bike Trail, the most extensive trail network in the city. When complete (2026),it will be 19 miles long.
• Project ConnectGreen Line Station
  • The project has direct pedestrian access to the future Project Connect “GreenLine” station (in pink on the area map).When. completed, this route will provide direct access to Downtown.
• Development & Employment Rich
  • Springdale Green is a 870,700 SF, Class A Office(larger than Frost Bank Tower)1/4 mile from the site. When complete and leased, it could accommodate 2,500+well-paying professional jobs.
• Major employers
  • Amazon, Tesla, and a growing number of last-mile distribution facilities east of I-35. This is all in addition to the large number of service and entertainment jobs in East Austin.

Beyond the ever-expanding number of award-winning restaurants, bars, and cultural venues, Austin’s rapidly developing east side offers residents a high quality of life minutes away from Lady Bird Lake and the Hike and Bike Trail, numerous park and trail networks, Downtown Austin, the Rainey St. District, and the increasingly global Austin-Bergstrom International Airport.

Site History

This opportunity in Shady Lane Apartments is a culmination of 6+ years of predevelopment work., including a difficult 2-year rezoning from single family to MF4 requiring City Council approval, a 1.5-year Ch. 26 approval process requiring approval through both Austin Parks and Recreation Board and City Council to allow the property to discharge into Boggy Creek, multiple submittals with HUD over 4.5+ years, and 1+ year-long agreement negotiation with a Public Facility Corporation to provided subsidized rents in exchange fora property tax exemption.

Interested in learning more about BCP? Please click here to reach out to one of team members.

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