Gray Enterprises Secures $70 Million Bond for Homesites

The National Finance Authority is funding a major housing expansion in Southeast Texas by issuing nearly $70 million in bonds.

The funding will support the development of 1,930 residential lots within River Ranch, a 2,500-acre master-planned community in Liberty County, between Dayton and Mont Belvieu, Homes.com reported. Upon its completion by 2035, River Ranch is expected to feature over 6,600 homes, along with shops, restaurants and apartments.

The project’s master developer, RR Funding LLC, traces to Eddie V. Gray’s Baytown-based firm Gray Enterprises. The firm developed the Graywood Subdivision in Baytown and Fairmont Park Subdivision in La Porte, the Baytown Sun previously reported.

Gray is bringing together about 15 homebuilders to execute the plan, including volume home builders like D.R. Horton, PulteGroup and K. Hovnanian.

Home prices at River Ranch are set to range from over $300,000 to over $500,000.

Situated in one of the nation’s fastest-growing metropolitan areas, River Ranch is part of a larger effort to address the rising demand for housing in the Houston region. With a population of 7.5 million, the Houston metro area ranks fifth-largest in the U.S. The area added nearly 140,000 residents between mid-2022 and mid-2023, second only to Dallas-Fort Worth, according to the U.S. Census Bureau.

The River Ranch community is also strategically located outside hurricane evacuation zones, making it ideal for weather-weary buyers, said developer Eddie Gray of River Ranch Holdings.

A market study conducted by Zonda Consulting forecast success for the project, due to Houston’s economic growth and demand for housing. However, the report also flagged potential risks, including high mortgage rates and affordability challenges stemming from sharp price increases in 2021 and 2022.

Builders have counteracted these issues by aggressively offering mortgage rate incentives to maintain steady sales.

— Andrew Terrell