🏘️ Under Contract — MF + Retail land development play. Lennar building shared infrastructure on adjacent tract — major cost de-risk.
Deal Overview
Product TypeMF Lots + Retail Pads
MF Units (Target)300–360 units
Retail Pads4 pads (~1.5 ac each)
LocationFM 812, Austin ETJ
CountyTravis County
Purchase Price$6,499,999
EntityBBM 2025, LLC
StatusUnder Contract
Capital Structure & Returns (Est.)
Purchase Price$6,499,999
Total Project Cost (Est.)$10,000,000
Equity Required (Est.)$4,000,000
Debt (60% LTV Est.)$6,000,000
Mid-Case Gross Revenue$14,550,000
Mid-Case Net Profit$4,550,000
LP IRR (Est.)28–34%
Equity Multiple (Est.)2.1–2.6x
Preferred Return8% p.a.
LP/GP Split95/5 → 75/25 promote
Key Metrics
Price Per Unit (300 units)$21,667
Price Per Unit (360 units)$18,056
MF Sale Value (Est.)$8.25–10.8M
Retail Pad Value (Est.)$4.8M
Lennar Infra. Credit~$1.5M savings
Hold Period (Est.)18–30 months
Fee Structure (Est.)
Acquisition Fee2% ($130,000)
Disposition Fee1% of gross sales
Asset Mgmt Fee1%/yr on equity
Preferred Return8% cumulative
Promote (above pref)75/25 LP/GP
Situation Summary
FM 812 (Wong Tract) is a multifamily lot + retail pad land development located on FM 812 in the South Austin ETJ corridor — one of the fastest-growing areas in Travis County. The site is planned for 300–360 multifamily units and 4 retail pads.
The deal is structured under BBM 2025, LLC — a partnership between John Burns, Kent McNeil, and Craig Biggar. Purchase price is $6,499,999.
A critical value driver: Lennar / Millrose Properties is actively building on the adjacent tract and is responsible for bringing shared water and wastewater infrastructure to the area. This significantly de-risks utility costs and could reduce BBM's horizontal development costs by an estimated $1.0–1.5 million.
The FM 812 corridor is seeing rapid growth with major master-planned communities nearby (Goodnight Ranch, Easton Park) and strong multifamily and retail demand driven by South Austin's population expansion.
Key Issues & Risk Flags
Under contract — active deal
Lennar shared infra — major cost de-risk
FM 812 growth corridor — strong demand
$6.5M purchase — well below gross lot value
BBM entity — proven partnership
Unit count TBD — 300 vs 360 depends on entitlements
Capital structure not yet finalized
Entitlement / ETJ process timeline uncertain
Retail pad timing — may lag MF sales
📈 The Bull Case for FM 812
This is a land development play with a built-in infrastructure subsidy. Lennar's shared infrastructure investment on the adjacent tract means BBM avoids $1.0–1.5M in horizontal costs that would otherwise come out of pocket. That alone adds 300+ bps to returns.
Purchase Price$6,499,999
Gross Lot Revenue (Mid)$14,550,000
Margin on Cost45%+
Lennar Infrastructure$1.0–1.5M savings
FM 812 CorridorGoodnight Ranch, Easton Park nearby
At 360 units and $30K/unit MF lot pricing, the MF component alone generates $10.8M — nearly covering the entire project cost. Retail pads at $4.8M are gravy. Total gross of $15.6M on a $10M all-in cost = $5.6M profit (56% return on cost).
Lennar / Millrose Infrastructure Detail
Lennar is actively building homes on the tract immediately adjacent to FM 812. The land is held by Millrose Properties — Lennar's subsidiary that handles land acquisition and horizontal development before handing off to Lennar for homebuilding.
- What Lennar is building: Shared water and wastewater infrastructure serving the broader FM 812 corridor
- Impact on BBM: Reduces or eliminates the need for BBM to independently build major utility infrastructure
- Estimated savings: $8,000–15,000 per unit in horizontal development costs = $1.0–1.5M total for a 300+ unit project
- Risk reduction: Utility infrastructure is often the longest lead-time item in ETJ development — Lennar doing it removes schedule risk
- Confirmation needed: Exact connection points, capacity allocation, and cost-sharing agreements still to be finalized
FM 812 Corridor Market Snapshot
FM 812 is a major South Austin growth corridor in the Austin ETJ, located south of Slaughter Lane and east of I-35. The area has seen significant development activity driven by Austin's southward expansion.
- MF land values: $20,000–30,000/unit for entitled MF land in South Austin ETJ
- Retail pad values: $25–35/SF in South Austin corridors
- Key nearby developments: Goodnight Ranch, Easton Park, Whisper Valley — all major MPCs driving population growth
- Austin ETJ advantages: More flexible entitlement path vs. City of Austin, lower impact fees, faster permitting
- Infrastructure drivers: FM 812 widening, new retail/commercial development, school construction
- Demand drivers: Austin population growth (1.5%+ annually), south Austin affordability relative to central Austin
Partners & Team
John Burns
BBM 2025, LLC — Principal
Kent McNeil
BBM 2025, LLC — Principal
Craig Biggar
BBM 2025, LLC — Principal
Kutak Rock
Legal — Heather Puckette, Heidi Wolford
Lennar / Millrose Properties
Adjacent developer — shared infrastructure
Timeline (Estimated)
- Under Contract: Current — April 2026
- Close / Acquisition: TBD (pending due diligence)
- Entitlement Process: 6–12 months post-close
- MF Lot Sales: 12–24 months post-entitlement
- Retail Pad Sales: 18–30 months (typically lags MF)
- Full Disposition: 24–36 months total hold
Updated April 12, 2026 · Atlas · Source: BBM deal files, Atlas market research