FM 812 (Wong Tract) is a land development play — purchase raw/partially entitled land, entitle for MF + retail, then sell finished lots and pads. BBM 2025, LLC acquires the tract for $6,499,999, invests in entitlement and horizontal development, then sells MF lots to apartment developers and retail pads to commercial users.
The critical value driver is Lennar / Millrose Properties building shared infrastructure on the adjacent tract, which reduces BBM's horizontal costs by an estimated $1.0–1.5 million and removes the longest lead-time risk.
Status: Under contract. Due diligence in process. BBM entity formed (John Burns, Kent McNeil, Craig Biggar).
| Item | Amount | Notes | Conf. |
|---|---|---|---|
| Land Acquisition | $6,499,999 | Purchase price — confirmed | HIGH |
| Closing Costs (2%) | $130,000 | Title, legal, survey | MED |
| Entitlement / Soft Costs | $750,000 | Engineering, planning, permits, consultants | EST |
| Horizontal Development | $1,200,000 | Grading, roads, utilities (net of Lennar credit) | EST |
| Carry Costs (24 mo) | $720,000 | Interest + taxes + insurance during hold | EST |
| Acquisition Fee (2%) | $130,000 | GP fee on purchase price | MED |
| Contingency (5%) | $470,001 | 5% of non-land costs | EST |
| Asset Mgmt Fee (2 yr) | $100,000 | 1%/yr on ~$4M equity × 2.5 yr avg | EST |
| Total Project Cost | $10,000,000 | Purchase + all development costs |
Without Lennar's shared infrastructure, horizontal development would cost an estimated $2.5–3.0M. With Lennar handling water and wastewater:
| Scenario | Horizontal Cost | Total Budget | Savings |
|---|---|---|---|
| Without Lennar | $2,700,000 | $11,500,000 | — |
| With Lennar (budget) | $1,200,000 | $10,000,000 | $1,500,000 |
Lennar savings are estimated based on typical shared infrastructure cost reductions of $8,000–15,000/unit. Actual savings depend on final connection agreements.
| Source | Amount | % of TPC | Notes |
|---|---|---|---|
| Acquisition Loan (60% LTV) | $3,900,000 | 39.0% | 60% of purchase price |
| Development Line | $2,100,000 | 21.0% | Entitlement + horizontal + carry |
| Total Debt | $6,000,000 | 60.0% | |
| BBM GP Equity | $200,000 | 2.0% | 5% of equity = BBM principals |
| LP Equity | $3,800,000 | 38.0% | 95% of equity — outside investors |
| Total Equity | $4,000,000 | 40.0% | |
| Total Sources | $10,000,000 | 100% |
| Priority | Distribution | Notes |
|---|---|---|
| 1. Return of Capital | 100% to equity holders pro rata | LP gets back $3.8M, GP gets back $200K |
| 2. Preferred Return (8%) | 100% to equity holders | 8% cumulative annual preferred |
| 3. Above Preferred | 75% LP / 25% GP | GP promote kicks in above 8% pref |
| Scenario | Units | Price/Unit | MF Revenue | Notes |
|---|---|---|---|---|
| Conservative | 300 | $27,500 | $8,250,000 | Lower density, lower pricing |
| Mid-Case | 330 | $30,000 | $9,900,000 | Base case — expected outcome |
| Optimistic | 360 | $30,000 | $10,800,000 | Max density entitlement |
| Pad | Est. Acres | Price/Pad | Revenue | Notes |
|---|---|---|---|---|
| Retail Pad 1 (FM 812 frontage) | 1.5 | $1,400,000 | $1,400,000 | Premium — road frontage |
| Retail Pad 2 | 1.5 | $1,200,000 | $1,200,000 | |
| Retail Pad 3 | 1.5 | $1,100,000 | $1,100,000 | |
| Retail Pad 4 | 1.0 | $1,100,000 | $1,100,000 | Smaller pad |
| Total Retail | 5.5 | $4,800,000 | $25–35/SF range |
| Scenario | MF Revenue | Retail Revenue | Gross Revenue | Less: Cost | Net Profit |
|---|---|---|---|---|---|
| Conservative | $8,250,000 | $4,800,000 | $13,050,000 | $10,000,000 | $3,050,000 |
| Mid-Case | $9,900,000 | $4,800,000 | $14,700,000 | $10,000,000 | $4,700,000 |
| Optimistic | $10,800,000 | $4,800,000 | $15,600,000 | $10,000,000 | $5,600,000 |
| Step | Amount | Recipient | Notes |
|---|---|---|---|
| Gross Revenue | $14,700,000 | — | 330 MF units + 4 retail pads |
| Less: Total Project Cost | −$10,000,000 | — | All-in development cost |
| Less: Disposition Fee (1%) | −$147,000 | GP | 1% of gross sales |
| Net Distributable | $4,553,000 | ||
| 1. Return of LP Equity | $3,800,000 | LP | 100% return of capital |
| 2. Return of GP Equity | $200,000 | GP | 100% return of capital |
| 3. 8% Pref on LP Equity (2 yr) | $608,000 | LP | $3.8M × 8% × 2 years |
| 4. 8% Pref on GP Equity (2 yr) | $32,000 | GP | $200K × 8% × 2 years |
| Remaining after pref | −$87,000 | Slightly negative in 24-mo scenario — promote only if hold < 24 mo or revenue exceeds mid-case | |
| Fee / Return | Amount | Notes |
|---|---|---|
| Acquisition Fee (2%) | $130,000 | At closing |
| Asset Management Fee | $100,000 | ~1%/yr × 2.5 yr avg |
| Disposition Fee (1%) | $147,000 | On gross sales |
| GP Equity Return | $200,000 | Return of capital |
| GP Preferred Return | $32,000 | 8% × 2 yr |
| GP Promote (25% above pref) | ~$0 | Minimal at 24-mo hold — grows at shorter holds |
| Total GP Return | $609,000 | Fees + equity + promote |
| MF Units → | 300 | 330 | 360 |
|---|---|---|---|
| $25,000/unit | $2,300,000 | $2,850,000 | $3,600,000 |
| $27,500/unit | $3,050,000 | $3,675,000 | $4,500,000 |
| $30,000/unit (base) | $3,800,000 | $4,700,000 | $5,600,000 |
| $32,500/unit | $4,550,000 | $5,525,000 | $6,500,000 |
| $35,000/unit | $5,300,000 | $6,350,000 | $7,400,000 |
Assumes $4.8M retail revenue constant across all scenarios. Net profit = (MF revenue + $4.8M retail) − $10M total project cost − $147K disposition fee.
| Hold Period | LP IRR (Est.) | LP Equity Multiple | Notes |
|---|---|---|---|
| 18 months | ~38% | ~2.4x | Optimistic — quick entitlement + sale |
| 24 months (base) | ~31% | ~2.3x | Mid-case |
| 30 months | ~25% | ~2.2x | Slower entitlement or absorption |
| 36 months | ~20% | ~2.1x | Delayed — still acceptable |
| Scenario | MF Price/Unit | MF Revenue | Net Profit | LP IRR |
|---|---|---|---|---|
| 20% decline | $24,000 | $7,920,000 | $2,573,000 | ~18% |
| 10% decline | $27,000 | $8,910,000 | $3,563,000 | ~24% |
| Base (no change) | $30,000 | $9,900,000 | $4,700,000 | ~31% |
| 10% increase | $33,000 | $10,890,000 | $5,543,000 | ~37% |
| Item | Value | Source |
|---|---|---|
| Purchase Price | $6,499,999 | Contract |
| Entity | BBM 2025, LLC | BBM formation docs |
| Partners | John Burns, Kent McNeil, Craig Biggar | BBM formation |
| MF Unit Range | 300–360 units | Preliminary plans |
| Retail Pads | 4 pads | Preliminary plans |
| Lennar Adjacent | Active — building shared infrastructure | Craig / site inspection |
| Legal Counsel | Kutak Rock (Puckette, Wolford) | Confirmed |
| Assumption | Value Used | Basis | Conf. |
|---|---|---|---|
| MF lot pricing | $30,000/unit (mid) | South Austin ETJ MF land comps ($20–30K range) | MED |
| Retail pad pricing | $1.1–1.4M/pad | FM 812 corridor retail land comps | MED |
| Horizontal cost (w/ Lennar) | $1,200,000 | Typical ETJ horizontal less Lennar credit | EST |
| Lennar savings | $1,500,000 | $8–15K/unit × 300+ units | EST |
| Entitlement cost | $750,000 | Comparable ETJ entitlement projects | EST |
| Hold period | 24 months (mid) | Typical ETJ land dev timeline | EST |
| Capital structure | 60/40 debt/equity, 95/5 LP/GP | Comparable to Thaxton | EST |
| Carry cost rate | 7.5% on debt | Current market rates | EST |
This pro forma is an Atlas-generated estimate based on comparable transactions and market data. Key assumptions (capital structure, unit count, pricing) have not been confirmed by John Burns or BBM 2025, LLC. Actual results will depend on entitlement outcomes, market conditions at time of sale, and final deal structure. Updated April 12, 2026.