Residential Subdivision Development in Conroe, Texas
Tract 1-34.022 acres in Montgomery County, Conroe, Texas
Tract II-95.2609 acres in Montgomery County, Conroe, Texas
11/12 The partnership has negotiated an agreement for BRISA Development and the partnership to go forward with construction on a joint venture. The investors have been asked to review the following (i) offer by BRISA, and (ii) an opinion letter, and then vote on the measure.
BRISA's Offer (pdf file)
Opinion Letter (pdf file)
NOTE, you must have Adobe Acrobat Reader software to view pdf documents. It is a free download.
4/21/03 The partnership has sold 15 lots to a developer, and with the proceeds has purchased 13 acres of land that will provide access to 34 acre tract that was land-locked. This was to avoid building a million dollar bridge across the waterway. Brisa is due to have the land plan finished and submitted to the city for approval this week.
5/2/03 Construction has begun on the project. The front entrance has been torn down and a new more appropriate entrance is in the works. The first builder has his foundation pad in place, and should be pouring a slab in the next few days. The new plat will yield about 525 lots, and it is believed that lot prices for 50' frontage will sell for $24,000 each. Development costs and fees to the developer will run approximately $12,000 per lot. The City of Conroe is also expected to reimburse the partnership for utilities in the amount of $650,000 once homes are built. With any project there are risks and unknowns in construction and the economy, but we are optimistic that we could see payments in approximately 12-18 months. We will keep you posted on further developments.
Second Amended Partnership Agreement (pdf file)
4/30/04 Construction in Sec 1 has been completed with 70 lots. David Weekley Homes has purchased 14 lots, and is beginning construction on homes.
9/5/04 The property has been divided into two areas, which divide is along the bayou. A new entrance was made by purchasing new land along the roadway. The new subdivision is called Canyon Creek. The other section is called Summergate. Canyon Creek's first of five subdivisions is complete and David Weekley Homes has started five homes of the 15 lots purchased. Weekley has a contract to purchase all the lots in this section. We are negotiating with other builders to develop the lots in Summergate at this time.
12/31/05 The first of five sections has been mostly developed, lots sold and home built by David Weekley Homes. The second of the five sections is now under development. The partnership will continue to develop lots; however, the partnership is entertaining the sale of the balance of the development with other developers. If a serious offer is tendered, the partners will be provided the new information.
7/18/06 The partnership has now sold 58 lots out of 81 in Section One. The bank loan of approximately $1.8MM has been paid down to approximately $200,000. The builder David Weekley Homes has asked us to begin to develop Section Two. We will be negotiating this with them.
10/31/06 Weekley Homes has decided not to proceed on lot purchase; however, other builders have shown interest in the property. We also have two parties that are interested in purchasing and developing the remaining sections. We are discussing a possible purchase.
3/21/07 The property is now under contract for the unimproved acreage, together with 23 lots. The partnership will still need to sell several larger lots. It is believed that with this sale, and the expected amount of sale proceeds from the remaining lots, that the recovery will be approximately 35% of principal. The closing on the property (except for larger lots) is scheduled for April 07.
6/1/07 The pending deal that was for the 23 lots and remaining acreage has been withdrawn by the buyer. The deal for the large lots is still going forward and is expected to close in the next few months, hopefully by August '07. We are talking with other developers on the unsold acreage at this time.
6/1/08 The partnership has sold the remaining unimproved land area to the Conroe School District. The remaining property consists of 7 small lots, which remain on the market. A distribution is scheduled. The remaining property and cash balance of the account will be paid once all property is sold and we can shut down the partnership. The remaining recovery will be very small.
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