Johnson Development Corp Buys 1619 Acre Tract in Northwest Harris County
Commercial real estate investors in the Houston, Texas area have another good reason to pay attention to local real estate news as one of largest tracts of land in the area is acquired by a master plan community (MPC) developer.
Johnson Development Corporation, a leading Houston, Texas-based master plan community developer has purchased the 1,619-acre tract of land in Northwest Harris County. The announcement was made by the Houston-area privately owned real estate investment firm of Rockspring Capital on June 8, 2017. The purchase amount and terms of the sale were not disclosed.
The property is located on the outskirts of the metro Houston area, near U.S. 290 and Katy Hockley Road. One of the largest property acquisitions in recent years, Rocksprings Capital had invested several years into assembling the property and readying it for development, at the time of the sale.
Buyer Johnson Development Corp. was one of several master plan developers to make offers for the property. Rocksprings Capital ultimately chose Johnson Development Corp. based on their reputation as a master plan community (MPC) developer and the quality of their financial resources.
Johnson Development Corp. has previously developed many popular residential developments in the area, including Cross Creek Ranch, Riverstone, Sienna Plantation, and Fall Creek.
A truly unique property, the 1,619-acre tract offers excellent development potential with little mapped flood plain area and no significant environmental challenges to deal with. At the time of the sale announcement, Johnson Development Corp. is stated to have no immediate development plans for the tract, although Jim McAlister, Rockspring CEO, states that the property is in a path of growth for the area.
Residential housing development continues to expand in the Houston area, due to the steadily increasing population. Located in one of the fastest growing areas near the popular Grand Parkway development, this tract of land has the potential to give thousands of home buyers an excellent housing option in a premium location.
For commercial real estate investors, a development of this scale presents a multitude of opportunities to assist in bringing more quality homes to an area that is showing steady growth. Quality housing options mean more commerce in the area, as well as a larger tax base to help support and grow necessary infrastructure.
Recent history has proven that homes in master planned community settings are better able to maintain their value than similar homes situated in traditional subdivision settings or small bedroom communities. Master planned communities offers homeowners more for their housing investment, with parks, commercial areas, access to good schools, and many other amenities that may not be available outside of a well-designed master plan concept.
This trend is proven out by numbers from the United States Department of Commerce. In 2010, when most residential home sales were tanking across the nation, new homes located in master planned communities actually sold at a higher volume.
While national real estate sales have rebounded throughout most of the nation in the seven years since 2010, houses located in master planned communities have also continued to sell better, as well. Home buyers continue to choose master planned communities as a way to protect their investment and prevent their home from becoming a victim of zoning laws, overdevelopment, or commercialization.
Further details about this purchase or Johnson Development Corporation's plans for it in the future were not provided by the buyer at this time.