A gigantic ranch near San Antonio now has an equally large asking price to match.
Mt. Solitude Ranch, a 3,600-acre property in the fast-growing area to the northwest of the Alamo City, is asking $79.9 million, according to a release by Icon Global. The 100-year-old ranch has been on the market since last year, but only now has a set asking price. Ranch specialist Bernard Uechtritz, the firm’s founder, has the listing.
For a century, the land has belonged to the family of R.L. White, who owned a paving company and rock asphalt mine. Parts of the property hit elevations over 1,800 feet, and it sits near Mount Smith, the highest point in Bexar County.
Uechtritz says that in legacy ranch sales, where development possibilities are many and off-market sales make up the bulk of deals, it’s not unusual to go to market without a set asking price for some time.
“When you have a really unique piece like this, you go out and see what the market says first,” Uechtritz said.
The price is meant to reflect the likely institutional buyer pool, as home builders and developers eye a redevelopment play, given the property’s proximity to San Antonio and Austin.
Getting there will take time — at present, buildings on the ranch are more historic than haute. They include a rustic style, two-story pavilion by a small lake on the property and a single-story stone home called “Gertie’s House” after White’s wife.
It’s a turbulent time in Texas land sales as slower homebuying has led the state’s biggest homebuilders to cut back on development site acquisitions. However, things may be turning around as buyers and major homebuilders are adjusting to the higher mortgage rate environment — Lennar stock jumped 5.45 percent this week on the heels of positive second quarter earnings.
“As it relates to home building, the economic environment has stabilized as customers have adjusted to and accepted higher-for-longer interest rates. The supply chain chaos has normalized, inventories have remained low, and the supply of housing across the country is in very limited supply,” the firm’s CEO said on the earnings call.
Any development that could come to Mt. Solitude would take years. Homebuilders of the scale that can buy and redevelop a 3,600-acre ranch have a long-term view of the housing market.
A 2,200-acre ranch in the area recently drew six offers after listing for $54.5 million.
“Anybody that’s big and substantial and deep, they’re not buying in today’s marketplace for today’s ROI,” Uechtritz said. ”They’re buying 3 or 4 cycles out.”
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