Red Oak Development Group is knee deep in its $15 billion plan to build 10 mini cities in rural areas near Austin and Dallas, despite shaky market conditions.
Land is so expensive that many developers have stopped buying. Construction costs have builders exercising caution. Existing home sales are taking a dive. Mortgage rates are at 8 percent.
Yet Red Oak is chugging along with its Project Lonestar, which aims to build these mini cities, using public and private funds, by 2030. The firm is starting the second Project Lonestar development in Caldwell County, a fast-growing area southeast of Austin, the Austin Business Journal reported.
“It seems so contrarian to go out there and do this now,” Staub told the outlet. “But doing this now puts lots on the ground in 12-to-18 months. So, really, it’s positioning ourselves to have the bulk of supply in Austin for builders going into 2025 and 2026. So timing couldn’t be worse if you’re thinking right now, but it couldn’t be better two or three years out.”
Red Oak’s latest development, the Gristmill at Prairie Lea, received unanimous approval from the Caldwell County Commissioners Court. Situated on 346 acres at the intersection of Plant Road and San Marcos Highway, this project will feature single-family and multifamily housing, a school site and an entertainment district. It’s expected to be fully completed by 2031.
Seawillow Ranch, a 414-home community that’s underway in Lockhart, also falls under the Project Lone Star umbrella.
Project Lone Star’s goal is to create over $10 billion in economic impact, establish six medical campuses, generate 10,000 jobs, offer housing for teachers and provide at least 10 school sites, the outlet reported.
Red Oak hopes these mini-cities will stimulate economic growth by attracting jobs, school districts, medical providers and commercial builders. Each project, spanning 200 to 800 acres, will maintain a 70/30 ratio of residential to commercial development.
After starting south of Austin, Red Oak plans to expand northward, engaging with economic development leaders in Liberty Hill, Georgetown and Hutto.
—Quinn Donoghue
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