Rastegar Property Company has released plans for a 318-acre development build-to-rent site in Kyle, a fast-growing market among the various suburbs filling the gap between Austin and San Antonio.
The 700 Bunton project is expected to eventually include 1,000 single-family homes for rent, 1,400 apartment units, over 50,000 square of commercial space, an 11-acre school site, and 60 acres of green space.
Map of the 700 Bunton community (Rastegar)
Developer Ari Rastegar said the costs could reach upwards of $250 million.
Renderings show single-family homes will surround a main commercial center that’s expected to have a grocery store, among other retail tenants.
Four sites for multifamily–parcels ranging from 6.62 to about 17 acres–will feature their own amenities and be connected to the areas with single-family homes via a bike trail that will be overseen by the city of Kyle and cut through the middle of the project.
Renderings of a Brewery for the 700 Bunton community (Rastegar)
The first phase of the project will contain the commercial center and some single-family homes, with groundbreak expected in the first quarter of 2023, according to the company.
Phases 2 and 3, which include more single-family homes and multifamily projects with access to their own amenities, are expected to come later as market demand shifts.
One of the goals is to bring back a sense of community to suburban areas, Rastegar said.
Build-for-rent development — which provides single-family homes and long-term rental options for residents who cannot afford home ownership — have taken off in Texas suburbs as home prices in metros such Austin keep many would-be homebuyers out of the market.
Renderings of an Amenity Center for the 700 Bunton community (Rastegar)
Los Angeles-based Pacific Coast Capital Partners recently began planning out its own build-for-rent community in an exurb of Houston, for instance, and other low-density areas in the Lone Star are following suit.
Rastegar is the latest player in the build-for-rent game and wants to build 700 Bunton as a template for similar projects in Texas and beyond.
“Kyle, in 2009, didn’t even have a stoplight,” Rastegar said. “Imagine where it is today, that we are pioneering this new way of living that Kyle should be living in in the future.”
The firm is no stranger to investing in the development of suburban Texas markets either, having planned out a 24,000-square-foot office project in East Austin earlier this year.