By Michael Ross, Vice President, Asset Management & Entitlements
Early winter is the time that vineyards ship their wine to their loyal customers. As some of my favorite offerings roll in, I can’t help but think of the parallel between wine making and real estate investing as both take land, time and nurturing. A testament to this delicate process, I would like to share the story of Rockspring’s Leander offering.
One of the fastest growing communities in the US, Leander has been a target of Rockspring Capital for many years. Rockspring made its first acquisition in this booming Austin MSA submarket in the summer of the 2014. However the real work began much earlier. Rockspring’s sales team started investigating the potential of the community in 2009, watching the burgeoning growth caused by the construction of the 183-A toll road and the commuter rail system that parallels the corridor.
Overhead image of the Crystal Falls property in Leander, Texas
Unlike many speculative real estate investors, Rockspring waits until an area matures and has actual, repeatable transactions taking place before investing in an emerging market. This allows Rockspring to narrow down the pricing of a property and reduce the risk of time.
For our Leander properties, the fruit has ripened and the harvest has begun. Rockspring closed four transactions for over $7,722,000 in the last 12 months and we are working hard to sell the remaining assets in the next 12 to 18 months. The value-add processes of entitlement and infrastructure improvement have allowed Rockspring to maximize the value of the investor assets while increasing its liquidity. In the year to come, we’re looking forward to the next harvest and what its potential brings to our investors.