CASE STUDY
Financial Modeling Behind the Waterline Tower in Austin, TX

Amount
~$1 Billion
Location
Type
Mixed-Use Tower
The Situation
Long before construction began on Waterline, the future tallest tower in Texas, the development team faced the challenge of evaluating one of the most complex mixed-use projects in the country.
The 74-story, 1,025-foot tower combines office, multifamily, hotel, and retail uses into a single development, requiring extensive financial analysis as the project evolved from concept through predevelopment. As different programming options, business plans, and capital structures were evaluated, the underwriting became increasingly complex.
We were engaged early in the planning process to provide commercial real estate underwriting support, helping coordinate financial models between the two co-developers while managing continuous revisions over nearly two years leading up to groundbreaking.
Our Approach
Financial modeling supported the project from the earliest stages of predevelopment through groundbreaking, adapting alongside the evolution of the development itself. As different combinations of office, multifamily, hotel, and retail uses were considered, the underwriting was continuously refined to evaluate alternative business plans, partnership structures, and capital assumptions.
Over nearly two years, numerous model iterations were completed while coordinating pro forma assumptions across both co-developers to maintain a consistent financial framework throughout the planning process. The engagement also included updating complex partnership waterfalls and incorporating changing design, market, and operational assumptions as the project advanced.
Following groundbreaking, the underwriting remained an active planning tool as construction costs, financing conditions, leasing expectations, and broader market dynamics shifted in the post-COVID environment. Ongoing model updates provided the financial insights needed to support decision-making throughout the development process.
The Results
After years of planning and financial refinement, Waterline became the tallest tower in Texas, rising 1,025 feet above the Austin skyline. The development brings together office, residential, hotel, and retail uses in a landmark mixed-use tower that will redefine the Austin skyline.
The financial modeling process evolved alongside the project, supporting years of planning as design, market conditions, and business assumptions continued to change. Through continuous refinement of underwriting, partnership waterfalls, and development proformas, the project maintained the financial framework needed to evaluate new scenarios and support informed decision-making.
Beyond construction, Waterline represents one of the most significant mixed-use developments in Texas, demonstrating how disciplined commercial real estate financial modeling and long-term collaboration can support the execution of highly complex real estate projects.



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