A city in central Texas issued $13.2 million in bonds to finance the construction of a master-planned community on the shores of a Colorado River reservoir.
The bonds, issued by the city of Lago Vista, mature between 2030 and 2054, yielding between 4.75% and 6%. They did not receive a rating.
The bond proceeds will help fund the $150 million development known as Lakeside at Tessera. The new residential community will include 2,030 homes, according to Hines Interest LP, which is developing the project.
Hines says the community, which lies on the north shore of Lake Travis, offers “an urban oasis of outdoor recreation that blends unmatched natural surroundings with all of the conveniences of city living.”
Master-planned communities, which often contain some commercial zoning and on-site amenities for residents such as pools and parks, are common in Texas. Of the 50 top-selling master-planned communities ranked by real estate consultant RCLCO last year, 36% were in Texas. (Only Florida had more of these communities, hosting 40% of the properties tracked by RCLCO).
Lago Vista is about 20 miles northwest of Austin. The bonds are special, limited obligations of the school district, payable by special tax assessments on property in the Lakeside at Tessera development.
FMSbonds, Inc served as underwriter on the issuance. Tijerina Galvan Lawrence LLC acted as financial advisor.