⚠️ Permit not yet obtained — 1st round comments received, resolution in progress. Fully designed but not yet permitted.
Deal Overview
Product TypeSingle-Family Rentals (SFR)
Unit Count140 SFRs
LocationNew Braunfels, TX
CommunityMayfair MPC (800 acres)
Land Value (Novak)$3,000,000
Total Project Cost$37,000,000
StatusDesigned — Permit Pending
Loan Balance$1,750,000
Loan Ext.Through Aug 2026 — no debt svc until Sept
Capital Structure & Returns
Total Project Cost$37,000,000
JAK F&F Equity$800,000
LP IRR19.1%
Equity Multiple1.9x
Adjusted IRR (w/ Promote)38.32%
Adjusted EM2.38x
Preferred Return8% p.a.
LP Promote Share15% of GP Promote
LP Equity Return$1,500,000
LP Promote$400,000
Total LP Return$1,900,000
Key Metrics
Yield on Cost6.5%
Exit Cap Rate5.0%
Dev Spread150 bps
Exit Value$52,000,000
Use of Funds Needed: $800K
Consultant true-up$300,000
Design / eng / permit$300,000
Carry costs$150,000
Contingency$50,000
Situation Summary
Mayfair is a 140-unit single-family rental (SFR) development within the 800-acre Mayfair Master Planned Community in New Braunfels, TX — one of the fastest-growing cities in Texas, located on the I-35 corridor between Austin and San Antonio.
The project is structured as a JV between JAK Development Group (developer/manager), Jeff Novak / Novak Brothers / Rivery Capital (landowner, contributing $3M land value), and Black Cat (construction partner). An institutional LP is expected to enter pari passu with Friends & Family equity after construction loan close.
The project is fully designed but not yet permitted — first-round permit comments have been received and are being resolved. Current $1.75M loan balance has been extended through August 2026 with no debt service until September 2026. Near-term capital need is $800K for consultant true-up, design/permitting, carry, and contingency.
Novak Summaries (Feb 2026) show $37M TPC with 19.1% LP IRR and $52M exit value at a 5.0% cap rate. Atlas's independent model confirms these figures closely. See Assumptions Comparison for the detailed reconciliation.
Key Issues & Risk Flags
Permit not yet obtained — 1st round comments
Institutional LP not committed
19.1% IRR — lowest in JAK portfolio
Novak loan extends only through Aug 2026
Fully designed — plans complete
New Braunfels — fastest-growing TX city
I-35 growth corridor — strong demand
SFR institutional demand growing
$800K F&F equity — very capital efficient
No debt service until Sept 2026
📈 The Bull Case for Mayfair
New Braunfels is the #1 fastest-growing city in Texas by percentage, sitting on the I-35 corridor between Austin and San Antonio. The 800-acre Mayfair MPC offers a master-planned community premium that institutional SFR buyers pay top dollar for.
I-35 Corridor GrowthAustin ↔ San Antonio boom
SFR Institutional DemandInvitation Homes, FirstKey buying
MPC Premium10–15% rent premium over standard
Construction Cost Advantage~$155K/unit (vs $200K+ in Austin)
Dev Spread150 bps — strong margin
At a 5.0% exit cap with institutional SFR buyers actively acquiring stabilized portfolios, the $52M exit value is achievable. If cap rates compress further (4.5%), value climbs to $54.4M. JAK's $800K equity stake provides outstanding capital efficiency.
Timeline (from Novak Summaries)
- SDP Approval: 8 months → Q4 2026
- Break Ground: 10 months → Q4 2026
- Begin Lease-Up: 12 months → Q4 2027 (absorption 10–12 units/month)
- Complete Project: 16 months → Q2 2028
- Stabilization: Q3 2028 (32 months total)
JV Partners
JAK Development Group
Developer / Manager
Jeff Novak / Novak Brothers / Rivery Capital
Landowner (passive) — $3M land contribution
Black Cat
Construction Partner
Institutional LP (TBD)
Pari passu equity — post construction loan close
New Braunfels SFR Market Snapshot
New Braunfels is one of the fastest-growing cities in Texas, located on the I-35 corridor between Austin and San Antonio. The city has seen explosive population growth driven by affordability relative to Austin, strong school districts, and quality of life amenities (Schlitterbahn, Comal River, Hill Country access).
- SFR rents (new MPC): $1,600–$2,200/mo for 3BR/2BA in master planned communities
- MPC rent premium: 10–15% above standard New Braunfels rents
- Construction costs: $140,000–$165,000/unit — significantly below Austin
- SFR cap rates: 5.0–5.5% for stabilized institutional portfolios
- Absorption: 10–12 units/month — confirmed in Novak summaries, realistic for NB market
- Key comps: Vintage Oaks, Veramendi, Gruene Oaks communities
- Institutional SFR buyers: Invitation Homes, FirstKey Homes, American Homes 4 Rent actively acquiring in I-35 corridor
Updated April 11, 2026 · Atlas · Source: Novak Summaries (Feb 2026), Atlas market research