PMB Capital maintains its $3.5 billion rural development game

Peter Pincoffs of PMB Capital (Illustration by The Real Deal; Getty)

Despite declining demand in North Texas scaring off many homebuilders, PMB Capital Investment is sticking to its rural land development game as it begins work on another segment of the Rolling V Ranch.

DR Horton has begun construction on Bluestem, which will include 1,200 single-family homes along FM 3433, the Dallas Morning News reports. The project, which spans 500 acres between the Dallas-Fort Worth suburbs of Rhome and Newark, is part of PMB’s sprawling Rolling V Ranch, a 3,600-acre property in Wise County, 12 miles east west of Texas Motor Speedway.

Rolling V Ranch was a long-term bet on demand for low-cost homes on the outskirts of Fort Worth. When PMB bought the land in 2019, the development was valued at $3.5 billion. Reunion’s development of 3,100 acres of PMB is also part of this rural land game.

Meanwhile, its partner DR Horton had to make concessions to unload its inventory in Texas by the end of the year. The company reportedly reduced home prices in its Remington Ridge community by 6-8%, a discount of about $20,000-$30,000. Its DHI Mortgage lending arm offers buyers an FHA mortgage rate of 4.75% and up to $10,000 in closing costs. The construction giant even hiked commissions for real estate agents by 3-4% in hopes of shifting inventory.

PMB Capital touted the mega-development’s road connections as a draw for new residents traveling to DFW’s booming suburbs.

“It was just the next natural step if you look at 287, but this project is unique in that it sits at the intersection of 287 and 114,” said PMB Capital co-founder Peter Pincoffs. . “You’ll have people who live here going to take 114 further out to Southlake or Las Colinas, and so you can take advantage of two major highways and the employment that happens along those.”

The expectation of dumping even more cars on highways like the 287 and 114, which connect DFW to its outlying hinterland, has been a contentious issue for PMB’s developments in the region. This summer, the developer had to reduce another of its Fort Worth-area projects from 2,100 homes to 1,914 homes after the community reacted to the impact of increased traffic on the nearby prairie and working ranches. His 700-acre Bond Ranch community — also on the outskirts of Fort Worth — is being developed on a historic cattle ranch that was family-owned from 1935 until PMB bought it in 2017.

“We are called Cowtown for a reason, and if you eliminate that culture by developing all the farmland in an area, you eliminate the identity of the town,” a resident told the Fort Worth Star-Telegram at the time. .

Pincoffs is undeterred. Plans for Bluestem include a long list of outdoor amenities such as lakes, ponds, waterfalls, walking trails, and numerous parks. The homes themselves will be DR Horton’s Rio Series ranch-style homes, starting in the mid-$300,000s.
“I think once people see this site, they’ll be really drawn to the outdoor gear that’s available that can’t be replicated in other places,” he said.

-Maddy Sperling

About Keneth T. Graves

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