Fairbridge Real Estate Investment Trust has announced the funding of 108 acres of land to build the first luxury resort in Texas wine country for a total amount of $4,750,000.
The property is a developable parcel of land that the Sponsor plans to convert into an ultra-luxury resort that will include twenty branded residences and over sixty sites for residential development.
The Sponsors are experienced, well-known, and well-respected developers and managers in the luxury hotel and residence business. Fairbridge’s loan-to-cost for the Property is projected to be 70% when fully drawn, with a loan-to-value of the Property of 44% based on stabilized appraised values. The population of the state of Texas increased by nearly 4,000,000 residents over the last decade. The Sponsors are experienced, well-known, and well-respected developers and managers in the luxury hotel and residence business. Fredericksburg is poised to be a beneficiary of this growth as it is located 1.5 hours by car from Austin and San Antonio, and 4.5 hours from both the Dallas/Fort Worth area and Houston. In addition, 43 of the 68 wineries in greater Gillespie County, home to Fredericksburg, have opened since 2016, but the hotel market has not kept pace with the increase in demand tied to population growth and the increase in wineries. Further evidence of increased demand in the area can be found when noting that AirBNB rentals are often sold out six months in advance of weekend stays as this area has become the second most visited wine tasting region in the nation behind Napa Valley.