Reger Holdings has secured significant financing for a new life sciences building in Northeast Austin. The company, based in New York, obtained $75 million in note-on-note financing to support a $105 million construction loan for the first laboratory at EastVillage, according to the Austin Business Journal.
The planned 223,500-square-foot building is fully pre-leased to BillionToOne, a molecular diagnostics firm from Menlo Park, California. BillionToOne achieved unicorn status last year after raising $130 million in Series D funding. Tarlton Properties, which is headquartered in California, is developing six life sciences buildings at the site located at 3600 Breakthrough Loop along Parmer Lane.
EastVillage covers 425 acres and is designed to eventually include a 1.5 million-square-foot health and life sciences campus, as well as 350,000 square feet of retail and restaurants, hotels, entertainment space, 2,500 multifamily units and over 450 single-family homes.
CBRE’s Zack Holderman described the deal as favorable amid difficult conditions for life science construction financing: “challenged life science construction environment,” he said. He also noted that the arrangement provided more than 70 percent loan-to-cost at a time when capital has become less available.
Construction began on the campus about a year ago. BillionToOne is expected to move into its new facility by late 2026. No timeline has been announced for completion of the remaining five buildings. Gordon Reger, CEO of Reger Holdings, indicated that full buildout of EastVillage could take seven to ten years.
BillionToOne was founded in 2016 and specializes in DNA-based diagnostic tests for various health issues. The company’s recent growth highlights ongoing interest from developers and lenders in lab spaces despite broader market challenges.
Austin has generally trailed other cities known for biotech development. If EastVillage reaches its goals, it could bring substantial change to this part of Parmer Lane by introducing new labs, apartments and retail space.
