Financing is locked in and dirt is scheduled to start moving this September on The Highlands, a 254-acre mixed-use community planned along Manzano Mile at FM 1431 near Marble Falls. Developer Rockspring is gearing up to kick off horizontal construction, with plans calling for 467 single-family homes alongside apartments, townhomes, estate lots and commercial pads, according to the developer's materials. Neighbors along the school corridor are being warned to expect early infrastructure work, since the site sits directly across from Colt Elementary and Marble Falls High School.
As reported by ConnectCRE, Forman Capital has provided approximately $28.2 million in lot-development financing to fund the initial site work for The Highlands. The loan is earmarked for horizontal improvements such as roads, utilities and grading that will prepare finished lots for other builders to deliver homes and multifamily buildings. Industry coverage indicates that this first round of funding lays the financial groundwork for the project to move into vertical construction phases later this year.
What's planned at the site
According to Community Impact, The Highlands is expected to cost more than $70 million to fully build out and will sit about five minutes from downtown Marble Falls. The master plan calls for finished development sites for single-family homes, apartments, townhomes, estate lots and commercial pads. Rockspring will handle the horizontal work, while vertical construction of homes and other buildings will be carried out by separate developers and homebuilders. Community Impact reports that Rockspring has closed on the construction financing and that the city is in the process of finalizing a public infrastructure bond to support on-site improvements.
How the financing is structured
CityBiz and other trade outlets note that the Forman Capital funding is structured as a lot-development loan, a short-term credit product commonly used to pay for infrastructure before lots are delivered to builders. The deal ties together private construction financing with a Public Improvement District, or PID, assessment plan that the city approved to help pay for roads, parks and utilities inside the development. That setup is intended to trim the developer's up-front capital needs while spreading certain infrastructure costs across the PID over time.
Legal and community implications
Rockspring describes the project as a response to a "high growth corridor" and rising housing demand in the Highland Lakes region. David Orr, Rockspring's regional director for Central Texas, said The Highlands will "deliver much-needed housing and amenities" to the community, according to Community Impact. The PID and its assessment plan mean that a portion of the infrastructure costs will be financed through the district rather than solely by the developer, which can influence future assessments tied to properties located within the PID. Residents and prospective property owners are advised to monitor city notices for any hearings or disclosures related to PID assessments and bond terms.
What to watch next
Horizontal work is slated to begin in September, with vertical construction expected to follow as homebuilders and other developers sign on, according to industry reporting. Key milestones to watch include initial site permits, finalization of the public-infrastructure bond and any developer-led community meetings that spell out project phasing, traffic plans and construction staging. Trade coverage from outlets such as CRE Market Beat and CityBiz is expected to spotlight the deal teams and builder partners as they are publicly announced.
