Private Equity-Backed Texas Housing Development Taps Muni Market
- Muni authority seeking debt for residential development
- Developers are planning to build more than 1,000 homes
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In suburban Texas, a neighborhood complete with an amphitheater, dance hall and goat farm is scheduled to be erected 40 miles from Houston’s downtown — providing municipal-bond investors a window to bet on one of the fastest-growing areas of the US.
In a transaction that priced this week, a municipal authority sold high-risk, tax-exempt bonds to finance infrastructure associated with a housing development dubbed Two Step Farm. The planned community stretches more than 2,000 acres in Houston’s sprawling metropolis. The first phase will have more than 1,000 homes priced between $350,000 and $1 million, as well as parks and amenities.