📊 Pro Forma Summary
Atlas land development model for FM 812 — MF lot sales + retail pad sales. Purchase: $6,499,999.
- MF Revenue (Mid): $9,900,000 (330 units × $30K)
- Retail Revenue: $4,800,000 (4 pads × $1.2M)
- Total Gross (Mid): $14,550,000
- Total Cost (Est.): $10,000,000
- Net Profit (Mid): ~$4,550,000
- LP IRR (Est.): 28–34%
- Equity Multiple (Est.): 2.1–2.6x
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🎯 Decision Memo
7-pass analysis of FM 812. Key question: does the Lennar shared infrastructure make this a slam dunk, or are there entitlement/timing risks that temper the thesis?
- Numbers: Strong — $6.5M → ~$14.5M gross = 2.2x
- Infrastructure: Major De-Risk — Lennar saves $1.0–1.5M
- Entitlements: TBD — 300 vs 360 units unclear
- Market: Strong — FM 812 corridor booming
- Capital: TBD — outside equity needed?
- Verdict: CONDITIONAL GO
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🏗️ Lennar / Millrose Infrastructure
Lennar is building shared water and wastewater infrastructure on the adjacent tract via Millrose Properties (Lennar's land/horizontal subsidiary).
- What: Shared water + wastewater infrastructure
- Impact: Reduces horizontal costs by $8K–15K/unit
- Total Savings: $1.0–1.5M for 300+ units
- Schedule: Removes longest lead-time risk item
- Status: Lennar actively building — confirmed
🤝 BBM 2025 Partnership
Three principals with complementary roles in commercial real estate development.
- John Burns: Principal — deal sourcing, capital, legal
- Kent McNeil: Principal — capital, operations
- Craig Biggar: Principal — development, entitlements
Legal: Kutak Rock (Heather Puckette, Heidi Wolford)
Capital Structure (Est.): 60% LTV, 95/5 LP/GP, 8% pref, 75/25 promote
📍 FM 812 Corridor
FM 812 is a major South Austin growth corridor in the Austin ETJ.
- Nearby MPCs: Goodnight Ranch, Easton Park, Whisper Valley
- MF Land Values: $20K–30K/unit (entitled)
- Retail Pad Values: $25–35/SF
- ETJ Advantage: Flexible entitlements, lower fees
- Growth Drivers: FM 812 widening, school construction, retail expansion
❓ Open Items
Critical questions to resolve before/at close:
- Unit Count: 300 vs 360 — what does entitlement process yield?
- Lennar Agreement: Formal cost-sharing / connection points?
- Capital Structure: LP equity needed? How much?
- Entitlement Timeline: ETJ process duration?
- Retail Pad Timing: When can retail pads sell?
- Due Diligence: Environmental, survey, title — status?