Daniel Porter, original developer of the Spanish Oaks luxury home community and golf course, has regained possession of the property after having lost it to foreclosure last September. With the assistance of an $18 million loan from real estate investment firm Stratford Land, Porter plans to restart lot sales immediately.
According to a story by Shonda Novak in today’s Austin American-Statesman,
Porter originally had hoped to have a completed project by 2012 with 436 homes — about $600 million worth of real estate. But only 134 homes have been built, and lot sales fell precipitously in 2008 and 2009.
The 900 acre purchase was completed yesterday, representing the remaining acreage from the original 1,200 acre planned community within the highly esteemed Lake Travis Independent School District (LTISD). The 18-hole golf course is now projected to reopen in about 2 months, according to Novak’s article.
The story also includes commentary from Mark Sprague, Director of Business Development for Mission Mortgage. Quoting directly from the paper:
“However, there are only so many luxury buyers, locally or nationally,” Sprague said. In addition, southwestern Travis County along Texas 71 and nearby Lakeway has a large surplus of luxury developed lots — “definitely over a 10-year supply,” said Sprague, director of business development for Mission Mortgage.
“So it will be a challenge for those communities whose offerings are over $1 million over the next few years as the national economy continues to struggle,” he said.
But there are exceptions in any market, and only time will tell if Spanish Oaks succeeds, he said. “Patience, quality product (which Spanish Oaks pursued aggressively) and a national following (part of their initial success) could make it successful,” Sprague said in an e-mail.
Some activity has continued on lots purchased prior to the original foreclosure procedings and there are currently 14 houses under construction with an additional 8 homes in the design review process. Home values range in the neighborhood range from $600,000 to $4 million, according to the Statesman story.
We previously posted about the foreclosure proceedings for Spanish Oaks back on September 8, 2010. To see the older post, please click here.
To see the complete story from the Austin American-Statesman, please click here.