CBA Land Capital Acquires 94 Acres at Lakewood Pines Reserve
Deal Expands Balmoral Master-Planned Project; Home Sales Still Strong Northeast Houston Community
HOUSTON, TX – CBA Land Capital LP, a private investment firm and non-traditional lender for residential and commercial development, acquired 94 acres at Lakewood Pines Reserve as part of a Specialty Financing transaction with Land Tejas Companies. The acreage will be the future expansion of the successful Balmoral Master Planned Community project featuring Houston’s first crystal lagoon.
“Even in the midst of the ‘Stay Safe, Work Home’ orders and new social distancing measures, Land Tejas’ Balmoral community continues to demonstrate strong home sales, and this next addition to the project is well-positioned to continue that success,” said Paul Connor, Founder and President of CBA Land Capital. “We’re proud to partner with a leading Houston-area developer.”
There is great demand for continued single-family development. Texas alone is short more than a half-million houses from what’s needed, according to a report by Freddie Mac. The number of households in the U.S. is growing faster than homes are being built. According to the U.S. Census Bureau, the U.S. housing market is undersupplied by 3.3 million units and the shortage is rising by about 300,000 units a year. The Department of Housing and Urban Land Development reports supply of new housing is at historical lows. Moreover, recent stories by CNBC and CNN suggest suburban communities could become even more appealing post-pandemic given the public’s new awareness of urban population density.
In addition to filling consumer demand for homes, residential development provides significant economic value in the wake of the COVID-19 pandemic. According to the National Association of Home Builders “National Impact of Home Building and Remodeling” report, building 1,000 average single-family homes creates 2,900 full-time jobs and generates $110.96 million in taxes and fees for all levels of government to support police, firefighters and schools.
CBA Land Capital provides specialty finance services to master-planned community developers and homebuilders through strategic financing structures. The requirements for a traditional financing structure can stretch capital resources and balance sheet to its limits. However, securing and maintaining positions in the market, whether land or lots, is crucial to continued growth. CBA Land Capital is a non-traditional lender and offers a structure to alleviate capital and resource strains.
“Specialty financing provides developers and home builders with accelerated cash flow and liquidity,” said Philip Guyton, Director of CBA Land Capital. “Developers such as Land Tejas, are able to expedite continued development this way. Homebuilders are able to build well-located lot inventory in preferred communities.”
This acquisition is one in a series CBA Land Capital completed in partnership with Houston-based developers and builders. In January, the company purchased 1,039 Acres in Katy slated for future Land Tejas development. In February, CBA purchased 21 developed lots in the Wedgewood Forest Development.