Syndicated construction loans can be a risky endeavor for credit unions, but seven of them have come together to finance Journeyman Group’s $49 million affordable housing project in South Austin. University Federal Credit Union led the loan, which is part of a public-private partnership between Journeyman Group and Travis County Housing Finance Corp. The Matador will offer at least 50% of its 285 units to households making an average 60% median family income when it completes near the end of 2025.
Credit unions often need to collaborate on large projects such as this one due to their limited resources compared with larger banks; however, these seven credit unions were willing accept the risk involved and provide financing for this important development in Austin. The Austin Business Journal reported on the syndicated construction loan that made it possible for work on The Matador begin in May 2021.
