The Plan
Close
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De-annex from COA (45 days, mandatory under SB 2038)
→
Subdivide under Travis County
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Market & sell entitled retail pad sites to C-store operators, QSR chains, and commercial users
📊 Deal Metrics
Purchase price$6,500,000
Site size~9.85 acres
Net usable (est.)~8–9 acres TBD w/ topo
Lot count~9 retail pad sites
Target $/SF$35–52/SF
Gross sale proceeds~$22–25M
Hold period~18–24 months
💰 Capital Structure
Total project cost~$6.85M
Bridge loan (60% LTV)~$3.9M @ ~9%
Total equity needed~$2.95M
BBM GP equity (5%)~$148K
F&F LP equity (95%)~$2.8M raise
📎 Endnotes
¹ De-Annexation (SB 2038)
SB 2038 requires mandatory ETJ release within 45 days for ETJ properties. The City has NO discretion. Austin's own website states: "When the petition complies with the law, the City has no discretion and must release the area from the ETJ." Cost: ~$10–15K. Probability: ~95%. File Day 1 after closing.
² WQZ (Water Quality Zone)
COA's WQZ overlay applies within the ETJ. Upon de-annexation, COA's WQZ rules no longer apply — the property moves to Travis County jurisdiction. Treating disappearance as the expected outcome. Mahoney is reviewing to confirm.
³ TIA & Curb Cuts
Existing TIA was written for a 100,000 SF shopping center. A revised TIA is required for the C-store / QSR use. Desired outcome: move the Thaxton cut closer to the corner AND add a second Thaxton cut with proper spacing. Requires TxDOT/Travis County approval.
⁴ MI Homes Easement
Existing easement allows MI Homes access to Thaxton Road. Royce Rippy indicated it's either unnecessary or can be rerouted. Low risk — paperwork only. Get written confirmation before closing.
⁵ Capital Structure
Bridge loan at 60% LTV (~$3.9M). BBM GP 5% (~$148K). F&F LP 95% (~$2.8M). First lot closing (hard corner ~$4.3M) covers most equity return.
⁶ Marketing Strategy
C-store and QSR operators work on 12–18 month cycles. Start direct outreach at closing. Go under contract with plat completion as closing condition. CLD listing goes on pause at closing (6-month tail applies).