🚨 DEADLINE: April 29, 2026 — Extension #1 notice must be sent in 18 days. Extension fee: $10,000 due May 1. Feasibility period expires May 4.
Deal Overview
LocationThaxton Rd & Slaughter Ln, Austin TX
Acreage9.8512 acres
Purchase Price$6,500,000
Price per Acre$659,800
EntityBBM 2025, LLC
StatusUnder Contract — Feasibility
Capital Structure
Senior Debt (60% LTV)$3,900,000
LP Equity (95%)$2,470,000
GP Equity (5%)$130,000
Total Equity$2,600,000
LP Preferred Return8% (non-compounding)
GP Promote75/25 after pref
Acquisition Fee2%
Disposition Fee1%
Asset Mgmt Fee1% / yr
Key Dates
Extension #1 NoticeApril 29, 2026
Extension #1 Fee ($10K)May 1, 2026
Feasibility ExpiresMay 4, 2026
Days Until Decision18 days
Base Case Returns (Mid-Case)
Gross Revenue$11,000,000
Net Profit$2,600,000
Profit Margin35%
LP IRR24.6%
The Plan: Subdivide & Sell
Thaxton Corner is a 9.85-acre subdivision play at the intersection of Thaxton Road and Slaughter Lane in South Austin. The strategy is straightforward: acquire the tract, entitle and subdivide it into highest-and-best-use parcels, install horizontal infrastructure, and sell the individual lots to end users.
Proposed land plan:
- Multifamily lot(s): ~4 acres targeting 200+ units of multifamily development. Marketed to MF developers at ~$25,000/unit.
- Retail/QSR pads: 3–4 individual pad sites (~0.75–1.25 acres each) along Thaxton Road frontage. Target buyers: QSR operators, quick-service restaurants, drive-through retail.
- C-store/fuel pad: Already planned or adjacent — premium corner location commands highest per-acre value.
This is a land merchant-build model — BBM is not building vertical. The value creation happens through entitlement, subdivision, and infrastructure, then selling improved lots to end-user developers.
🔓 De-Annexation Upside
If the parcel is de-annexed from Austin city limits back into the ETJ, the development potential expands significantly. De-annexation enables different building codes, eliminates city water/sewer requirements (MUD/WCID becomes an option), and — critically — allows 2+ additional QSR/retail pads along the Thaxton frontage next to the c-store.
Additional QSR Pads2 pads × $1.2M = $2.4M
Additional Costs~$400K (entitlement + horizontal)
Additional Net Profit~$2.0M
Upside Gross Revenue$14,700,000
Upside Net Profit$5,100,000
John believes de-annexation unlocks significant additional value. Full analysis: De-Annexation Briefing →
Key Issues & Open Questions
April 29 deadline — 18 days
Extend or walk decision imminent
De-annexation feasibility TBD
CLD listing — terminate?
Charter Stone Capital — SW corner interest
MUD/WCID formation if de-annexed
QSR operator demand along Thaxton
Base case economics are solid
Parties
John Burns
BBM Partner — Principal, HSRE
Heather Kendrick
Attorney — BBM Lead (Kutak Rock)
Heather Puckette
Attorney — BBM Team (Kutak Rock)
Heidi Wolford
Attorney — BBM Team (Kutak Rock)
John Bruce
Title — Heritage Title (EM escrow)
Michael Searls
Charter Stone Capital — evaluating SW corner
Sean Murphy
CLD Listing Agent — termination pending
Next Steps
1. April 29 extension decision18 days — send notice or walk
2. De-annexation feasibility assessmentResearch SB 840 applicability
3. CLD listing — terminate or keep?Craig + Kent recommend terminating
4. Charter Stone Capital follow-upMichael Searls evaluating SW corner
5. QSR demand verificationConfirm operator interest along Thaxton
6. MUD/WCID analysis (if de-annexation pursued)Utility district options + timeline
Last updated: April 11, 2026 · Atlas for BBM 2025, LLC · John Burns, Kent McNeil, Craig Biggar