MONTGOMERY, Texas – (Realty News Report) – A company led by Houston investor Dan Silvestri of Silvestri Investments has purchased 1,623 acres in western Montgomery County. The tract is well positioned to capitalize on growing demand tied to the planned expansion of the Aggie Expressway along the emerging Highway 249 corridor between Houston and College Station.
NewQuest Properties reports that infrastructure work on the site, which borders FM 1486, was scheduled to begin in late 2022. The initial phase will focus on large single-family lots ranging from one to three acres on the eastern portion of the property. Land fronting the future freeway is being held for a commercial development.
“The Aggie Expressway is the driving force for land sales in the SH 249 corridor. This property was bought by an investor who saw the long-term growth trajectory,” said Joe Burke, vice president of NewQuest Properties’ Land Advisory Group. Burke and Rob Whitaker represented the buyer, Silvestri’s 1623 Magnolia North LLC, in a direct transaction with the seller, Eugene Campbell Family Partnership LP.
The site sits directly across from Bluejack National, a 755‑acre residential golf community, adding appeal for buyers seeking suburban lifestyle amenities.
Houston’s Strong Land Market
The Houston land market has been exceptionally hot, driven by limited lot supply and strong single-family home sales. Many homebuilders have been running short of lots or struggling to find suitable building sites, prompting intense competition for available acreage.
“There were at least five other entities making runs at this property. We happened to be the winner,” Whitaker said.
With mortgage rates that were low in 2021 and economists forecasting modest increases in the coming year, home sales were expected to remain robust. Industry forecasts from Zonda projected Houston single‑family starts in the range of roughly 39,500 to 41,500 for 2021, followed by 35,000 to 40,000 starts in 2022—figures that keep Houston among the nation’s leading homebuilding markets alongside Dallas.
Intense Demand for Land
Land prices in the Houston area have surged over the recent year, in some instances doubling in value, according to Kirk Laguarta of the Land Advisors Organization. Many large-acre transactions have closed as developers, builders and investors pursue scarce opportunities.
“What we are seeing is the great land rush,” Laguarta told an audience of developers, homebuilders and investors at a market forecast presentation. “We’ve never seen anything this hot. It’s running white hot. It’s a feeding frenzy.”
Residential developers are extending farther into outer suburbs as remote and hybrid work patterns make longer commutes more tolerable. Buyers increasingly accept living farther from downtown when they do not commute to the office five days a week, which expands demand for larger lots and suburban communities.
Growth Extending Toward College Station
The Aggie Expressway extension will create a four‑lane toll connection between Houston and College Station—commonly called “Aggieland”—home of Texas A&M University. The $767 million expansion was recognized as the transportation project of the year by the Texas chapter of the American Public Works Association. If construction proceeds on schedule, the connector’s four segments are expected to be completed by 2026.
“College Station is a destination as is Houston – and just as close,” Whitaker said. “There is a strong market in both directions for homes with elbow room on large tracts with amenities commonly found in denser subdivisions.”
Western Montgomery County is one of the region’s primary development hotspots. Over the past two years the county’s population rose to nearly 620,500 from about 602,000, making it one of the fastest-growing counties in Texas and among the most populous in the state. NewQuest called this transaction the largest land sale in Montgomery County so far in the year.
“This was a high-water point for us in 2021. We’re seeing a lot of opportunities in the 249 corridor and vying for several other tracts,” Whitaker said. “We know how to get to the finish line.”
Dec. 27, 2021 Realty News Report Copyright 2021
Book note: Check out the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available as a print and ebook edition.
File: Houston Investor Buys Acreage
Photo: Courtesy NewQuest
File: (2) Dan Silvestri of Silvestri Investments. Houston Investor Buys Acreage. NewQuest. Montgomery County. College Station.