183/E. William Cannon
The HWY-183 & East William Cannon Drive Apartments is a planned 300-unit multifamily development to be located at approximately the intersection of Highway 183 and East William Cannon Drive in Austin. It is being developed by Savoy Equity Partners in partnership with TCFC as approved through Resolution No. TCFC-2024-01. To provide affordable workforce housing options, 20.7% of the units (62 units) will be reserved for tenants earning up to 60% of the area median income, and 30.7% of the units (92 units) will be reserved for those earning up to 80% of the area median income. The remaining 48.7% (146 units) will be rented at market rates. The project will consist of a mix of studio, one, two, and three-bedroom units operating as a multifamily housing community. TCFC will own the land and project, leasing it back to Savoy Equity Partners' affiliated partnership. This development received approval from the Travis County Commissioners Court on March 26, 2024.
Details
Documents
Resolution No. TCFC-2024-01
February 1, 2024
To induce approximately 300 units of multifamily residential housing known as the HWY-183 & East William Cannon Drive Apartments to be developed in partnership with an affiliate of Savoy Equity Partners located at approximately the intersection of Highway 183 and East William Cannon Drive; to authorize negotiation of a term sheet; and to take other related actions, subject to the terms outlined in the resolution.
Financial Analysis - William Cannon
January 30, 2024
Hilltop Securities conducted an underwriting assessment for the William Cannon development with Savoy Equity, analyzing rent subsidies, property taxes, and public benefits. The project restricts 20.7% of units at 60% AMI, 30.7% at 80% AMI, and the rest at market rate. Estimated property taxes and developer fees were evaluated over 15 years. Public benefit percentages range from 78.69% to 151.8% depending on capitalization rates. Without a property tax abatement, the project risks falling below the minimum debt coverage ratio (DCR) for financing.
