Property: 90.35 acres located at East Slaughter Lane and Capitol View Drive in Southeast Austin, TX, within the City of Austin's Extraterritorial Jurisdiction (ETJ). No zoning or land use controls apply — the ETJ classification provides development flexibility with reduced regulatory burden.
Development Plan: The property was subdivided into 4 lots for sale to end-user developers. The strategy is straightforward: acquire and subdivide raw land into development-ready pads (multifamily and retail), sell to institutional and regional developers, and return capital to investors. No vertical construction — land entitlement and disposition only.
Original Pro Forma (2023 Offering):
| Lot | Type | Acres | Original Price | Projected Net | Target Close |
|---|---|---|---|---|---|
| Lot 1 (Belmont) | Multifamily | 15.2 | $25/door (300 units) | $6,365K | Month 15 |
| Lot 2 North (new — needs subdiv.) | Retail/Car Wash | ~3.0 | $15/SF (original) | ~$1,241K (orig.) | Post-subdivision |
| Lot 2 South (new — needs subdiv.) | MF Pad #3 | ~13.0 | N/A (new lot) | TBD | Post-subdivision |
| Lot 3 (Preakness) | Multifamily | 15.6 | $27.50/door (330 units) | $8,621K | Month 24 |
| Lot 4 (Retail P3) | Retail Pad | ~2.2 | $15/SF | $869K | Month 36 |
| Total | $27,357K | — | |||
GP/LP Structure: Highside Real Estate, LLC serves as GP/Sponsor (John Burns + Kent McNeil) with $3,000,000 GP equity (31.1%). LP investors contributed $6,648,500 in Class A Preferred Equity (68.9%) with an 8% annual preferred return (non-compounding). After preferred return and return of capital, profits split per the partnership agreement. 3% acquisition fee ($300K) paid at close; ongoing asset management fee to GP.
Timeline to Full Exit: Original offering projected full exit by Month 36 (all lots sold). Belmont closed in Month ~27 (Feb 2026). Remaining lots expected to close through late 2026 and into 2027, depending on Preakness boundary resolution and retail pad marketing. Full project wind-down expected by Q2 2027.
| Source | Amount | % of Total | Terms |
|---|---|---|---|
| LP Class A Preferred Equity | $6,648,500 | 45.4% | 8% annual pref (non-compounding), return of capital first |
| GP Equity | $3,000,000 | 20.5% | Co-invest alongside LPs |
| Debt | $5,000,000 | 34.1% | Project-level debt |
| Total Project Cost | $14,648,500 | 100% | — |