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 Provides $105M Construction Loan for Build‑to‑Suit Life‑Sciences Facility in Austin
Cottonwood Group is providing a $105 million construction loan to fund a new build‑to‑suit life‑sciences facility for biotechnology company BillionToOne at EastVillage ATX on Austin’s northeast side. The project is planned inside the 425‑acre mixed‑use development and is slated for completion in early 2027. The facility is expected to support roughly 1,000 new jobs.
Key project details
The loan finances a life‑sciences building reported at about 223,500 square feet in the lender’s announcement. Other local reporting lists the space at 220,000 square feet; both figures appear in public materials, so the exact final floor area should be confirmed with project partners. The site sits within a large, master‑planned community being developed by Reger Holdings in partnership with Tarlton Properties. Loan co‑arrangers on the deal were Newmark and CBRE.
Who is involved
Cottonwood Group is a real estate private equity firm with offices in Boston, Los Angeles and New York. The tenant and future occupant of the building is BillionToOne, a biotechnology company that has previously announced plans to relocate operations to Austin. The master developer of EastVillage is Reger Holdings, based in Buffalo, and the development partner on the facility is Tarlton Properties, based in San Francisco.
Why this matters for Austin
The project adds sizable lab and research space to a city that has been building a stronger life‑sciences cluster. Recent industry studies and market reports show Austin’s bio and health ecosystem is growing: the region is home to more than 1,100 bio and health companies that employ about 21,000 people, with an estimated total ecosystem valuation near $42 billion. Venture capital investment into the local sector has reached around $3.5 billion over the past five years, placing the city among the top 10 nationally for bio and health funding.
Local analyst work also notes that Austin has roughly 9.6 million square feet of bio and health space and that several companies in the region already exceed nine‑figure valuations. These trends help explain why institutional lenders and developers are moving to finance larger, purpose‑built life‑science projects in the area.
Market context and risks
National life‑science market reports point to both headwinds and opportunities. Vacancy rates remain elevated in many major markets, and global uncertainty has affected leasing activity. At the same time, investment sales tied to R&D properties have seen notable gains in some U.S. markets, and advances in tools such as artificial intelligence are opening new paths for drug discovery and trial efficiency. Washington and state policy choices may also shape how companies view long‑term investment and talent recruitment in the region.
Local support and infrastructure
Shared lab and incubator spaces are already part of the local ecosystem, including campus‑linked incubators that serve early‑stage life‑science startups. Those shared facilities and local training pipelines are likely to play a role in staffing the new building and supporting smaller firms that drive innovation. Observers note that a mix of local startups and growing firms, rather than relying solely on large relocations, will shape sustainable long‑term growth.
Notes on numbers and verification
Public materials contain a slight discrepancy in the reported building size: the lender’s loan announcement lists 223,500 square feet while other reporting lists 220,000 square feet. All other project details in those materials — including the lender, loan amount, tenant and expected job count — are consistent. Parties seeking precise specs or project drawings should request final plans or a clarification from the project developer or tenant.
What comes next
Construction will proceed under a build‑to‑suit arrangement aimed at meeting the tenant’s lab and manufacturing specifications. With construction financing now in place, the project team is targeting an early 2027 completion. Market watchers will be watching leasing and hiring activity as the building comes online and as Austin’s broader bio and health cluster continues to grow.
FAQ
What is the size of the new facility?
Public documents list the planned facility at about 223,500 square feet in the lender announcement and at 220,000 square feet in other reports. The exact figure should be confirmed with the developer or tenant.
Who is lending money for the project?
The construction loan is from Cottonwood Group. The loan was co‑arranged by Newmark and CBRE.
Who will occupy the building?
The tenant and end user is BillionToOne, a biotechnology company planning to base operations in the new facility.
When will the building open?
The project is slated for completion in early 2027, subject to construction schedules and permitting.
How many jobs will the project create?
The development is projected to support about 1,000 new jobs, including roles in research, labs, manufacturing and support functions.
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Key project features
| Feature | Detail |
|---|---|
| Loan amount | $105,000,000 construction loan |
| Lender | Cottonwood Group (offices in Boston, Los Angeles, New York) |
| Tenant | BillionToOne (biotechnology company) |
| Planned size | Reported at 223,500 sq ft (also reported as 220,000 sq ft in other materials) |
| Location | EastVillage ATX, 425‑acre mixed‑use development on Austin’s northeast side |
| Master developer | Reger Holdings (Buffalo‑based) |
| Development partner | Tarlton Properties (San Francisco‑based) |
| Loan co‑arrangers | Newmark and CBRE |
| Projected jobs | About 1,000 new jobs supported or created |
| Target 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 TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas 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 Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
