Austin developer enters bankruptcy to salvage New Braunfels development  

TBOTG has $36M in assets tied to 155-acre residential project in Austin-San Antonio megaregion

TBOTG Development’s William Korioth; The Bluffs on the Guadalupe (Getty, X fka Twitter, bluffsonguad)
TBOTG Development’s William Korioth; The Bluffs on the Guadalupe (Getty, X fka Twitter, bluffsonguad)

An Austin-based developer has filed for bankruptcy in a bid to salvage a major development in New Braunfels and keep operations afloat. 

TBOTG Development, the company behind The Bluffs on the Guadalupe in Comal County, voluntarily entered Chapter 11 bankruptcy earlier this week, the San Antonio Business Journal reported, citing a filing with the United States Bankruptcy Court for the Western District of Texas. 

When TBOTG president William Korioth unveiled plans for the 155-acre development in 2021, it was slated for 242 home lots along with 26 riverfront estate lots spanning 1 acre each.

TBOTG holds approximately $36 million in assets tied to the project, with liabilities near $23 million, according to bankruptcy filings. Despite grossing $8.3 million in lot sales between April and December of last year, the developer has been entangled in legal disputes since 2022, affecting the pace and profitability of the venture.

Lawsuits filed with the Supreme Court of Texas revolve around disagreements over financing and contractual obligations related to the Bluffs and other joint ventures involving Korioth and partners from previous endeavors.

Sign Up for the undefined Newsletter

The bankruptcy was necessary to unlock capital crucial for various stakeholders, including vendors, lenders, lot purchasers and investors, TBOTG’s lawyer Kell Mercer said. Mercer outlined plans to continue development, targeting approximately 50 remaining lots on the property.

Despite the setback, the firm remains optimistic about its prospects post-restructuring, citing a financing commitment from its senior secured lender, Georgetown-based First Texas Bank. 

“The financing is subject to bankruptcy court approval and, along with continued lot sales, will provide substantial liquidity to support operations in the normal course of business,” a company spokesperson told the outlet.

Once a sleepy tourist town, New Braunfels is in the emerging megaregion between Austin and San Antonio. Its population increased 17.2 percent between 2020 and ’23, and was estimated at about 106,000 last year, according to the Texas Demographics Center.

—Quinn Donoghue

Read more