📋 Legislative & Policy
SB 840 / ETJ
Texas SB 840 Now In Full Effect — Multifamily by Right on Commercial Land
Senate Bill 840, signed by Governor Abbott on June 20, 2025 and effective September 1, 2025, allows residential and mixed-use development by right on any property zoned for commercial use in Texas cities. The law is reshaping Austin's entitlement landscape — developers can now bypass certain rezoning processes for residential projects on commercial land. Austin's City Council has been scrambling to respond since the law took effect.
BBM Relevance: Thaxton Corner and Kohlenberg may benefit from SB 840 by-right provisions for any MF component. Verify with Heather Puckette (Kutak Rock) whether SB 840 applies to the specific zoning classifications at each site.
📰 JD Supra — March 6, 2026
🏗️ Austin Transactions & Development
Austin ETJ — FM 812 Corridor
TxDOT's $145M FM 812 Widening Project Advancing — ROW Acquisition Active
TxDOT is widening FM 812 from US 183 to SH 21 (9.5 miles) for $145M. The schematic design completed in July 2024 and ROW acquisition began mid-2025. The project will expand FM 812 to a 4-lane divided highway — a major infrastructure upgrade that will drive land values along the corridor. Construction timeline is being confirmed through CAMPO.
BBM Relevance: BBM's 10209 FM 812 site fronts this road. ROW take is still unknown — this is a critical open item for the FM 812 feasibility period. Mahoney Engineering meeting today (2pm CT) should address this directly.
📰 Spartnerships — Dec 2025
Austin Land Market
FM 812 Raceway Tract — JLL Listing Signals Corridor Momentum
JLL Capital Markets listed the FM 812 Raceway Tract (13201 FM 812) in January 2026, signaling active institutional interest in the SE Austin FM 812 corridor. A nearby 5.47-acre FM 812 parcel listed on LoopNet in July 2025 at $2.1M ($384K/acre), confirming land values in this corridor are escalating as the TxDOT widening and Lennar/Wong Tract infrastructure investment drives development activity.
BBM Relevance: Validates FM 812 land values at $300–400K+/acre for suburban ETJ parcels, supporting BBM's 10209 FM 812 acquisition basis at $6.5M for 20.18ac (~$322K/acre).
📰 JLL Investor Center — Jan 5, 2026
🏪 New Braunfels & Retail
New Braunfels — Retail
$37M Costco Rising in New Braunfels — Mayfair Master Plan Enters Critical Build Phase
Construction on New Braunfels' $37 million Costco broke ground September 2025 and is rapidly advancing, with steel beams visible and an April 2026 target opening. The Costco is anchoring the 1,900-acre Mayfair master-planned community, which is entering its pivotal commercial build-out phase. Analysts and local real estate firms note the "Costco Effect" is already driving land value appreciation in adjacent commercial corridors.
BBM Relevance: Directly supports the Kohlenberg investment thesis. Kohlenberg Rd fronts the Mayfair/Costco influence zone. The Costco opening in April 2026 will trigger immediate QSR and retail demand for adjacent pads — including Kohlenberg.
📰 MySA — Feb 2, 2026
QSR Expansion — New Braunfels
Chick-fil-A Expanding in New Braunfels With New Drive-Thru at 2808 Sophie Lane
Chick-fil-A announced a brand-new 5,271 SF drive-thru location at 2808 Sophie Lane in New Braunfels, with construction targeting completion by November 2026. This expansion confirms QSR operator demand for New Braunfels suburban locations amid the city's rapid growth. Chick-fil-A typically requires 1.5–2 acre hard-corner sites near rooftop density.
BBM Relevance: Chick-fil-A is an ideal Kohlenberg pad tenant. Their NB expansion demonstrates active demand. Kohlenberg's hard corner and Costco adjacency should rank highly in their site selection criteria.
📰 The New Braunfels Life — Jan 2026
💰 Capital Markets & Cap Rates
Austin Retail Market
Austin Retail Absorption Up 119% Year-Over-Year in Q3 2025 — Market Remains Healthy
Austin's retail market showed strong positive net absorption in Q3 2025, up 119.8% year-over-year, per Partners Real Estate. Prime retail cap rates in Central TX are trading at 5.5–6%, with NNN QSR assets (Chick-fil-A, Dutch Bros) commanding sub-5% in tier-1 locations. Older or fringe assets reaching as high as 7%. Debt markets remain active at 6–6.5% rates and 65% LTV.
BBM Relevance: Strong retail absorption validates the pad site exit strategy for both Thaxton Corner and Kohlenberg. Cap rate compression at 5.5–6% confirms the exit pricing assumptions embedded in the LP return models.
📰 Partners Real Estate — Oct 28, 2025