PPR Capital Management has completed its first-ever ground-up construction project with the opening of The Residences at Rubi, a 101-unit mixed-income apartment community in Austin, Texas. The $21.7 million development, which began after an October 2023 groundbreaking, marks a significant milestone for the private equity real estate firm as it expands its footprint in Texas’s rapidly growing housing market.

The Residences at Rubi reflects a strategic 50/50 balance of market-rate and affordable apartments, supported through Texas’s property tax abatement program for multifamily housing. The program, executed in partnership with the Strategic Housing Finance Corporation, allows private developers to integrate affordability into long-term housing supply while maintaining financial viability.

“This development showcases our ability to execute sophisticated projects that meet community needs while generating compelling returns through strategic financing structures,” said Steve Meyer, CEO of PPR Capital Management. “The Residences at Rubi exemplifies our commitment to delivering innovative housing solutions that create value for both residents and investors.”

Located with direct access to downtown Austin and Austin-Bergstrom International Airport, the community provides residents with connectivity to major employers in tech, healthcare, and government sectors. The property was designed with both affordability and accessibility in mind, serving Austin’s diverse population at a time when housing pressures continue to intensify.

“The Austin market continues to demonstrate strong fundamentals with its expanding employment base and population growth,” said Craig Johnsen, Chief Asset Officer at PPR Capital Management. “The Residences at Rubi’s mixed-income model not only accelerated our lease-up timeline but also positions the property for long-term stability. This project exemplifies PPR’s commitment to creating resilient investments that deliver exceptional value to our investors while meeting the diverse housing needs of the Austin community.”

PPR contributed $11.7 million of the $12.4 million equity investment and coordinated with a strong roster of partners:

• Notional Development Partners served as general partner.
• IE2 Construction acted as general contractor.
• Spire Project Management oversaw construction management.
• Avita Property Management is managing operations and lease-up.
• The Strategic Housing Finance Corporation played a key nonprofit role, enabling the tax abatement structure.

“Our partnership with PPR on The Residences at Rubi has been exceptional from groundbreaking to completion,” said Chris Affinito, Managing Partner at Notional Development Partners. “Together, we’ve created a community that meaningfully contributes to Austin’s housing ecosystem while establishing a blueprint for future affordable housing developments in high-growth markets.

Austin has been one of the most active housing markets in the country, with population growth outpacing housing supply for much of the last decade. While new multifamily construction is helping close the gap, affordability remains a challenge. Mixed-income models like The Residences at Rubi are increasingly seen as a critical tool to address both investor returns and community housing shortages.

For PPR Capital, the project marks an important shift from its traditional focus on distressed assets, mortgages, and repositioned real estate. The company, founded in 2007, has built its reputation on opportunistic investments that pair financial performance with social impact. By completing its first ground-up development, PPR is signaling its capacity to play a larger role in direct housing creation in high-demand markets.

With the Rubi project completed and leased, PPR is expected to evaluate similar ground-up opportunities in Texas and beyond, leveraging lessons learned in Austin to shape its future portfolio.

Originally reported by PR News Wire.