Investment firm flips 157 Acres to Katy ISD

An affiliate of Rockspring Capital sold 157 acres to Katy Independent School District four years after acquiring the land. 

The unused tract at the southeast corner of Katy Hockley and Longenbaugh roads, west of the Grand Parkway, is roughly 30 miles west of Houston's urban core near the official Katy city limits. 

Rockspring Capital acquired the land in 2014 with the intent of holding on to the property to sell later. 

The area has been popular with master-planned community and single-family developers. It received an economic lifeline with the construction of Interstate 10 in 1966, which accelerated growth. Greater Katy now contains nearly 300,000 residents, mostly in large sections of unincorporated land. 

A major aspect of Katy is its acclaimed public school system. The school district has 70,000 students across 63 campuses, making it the 53rd largest school district in the United States, according to the U.S. Department of Education, despite Katy’s official population being just over 17,000 residents. 

The land purchased by Katy ISD shares two borders with Newland Communities’ master-planned residential community Elyson, according to a news release. 

"Katy’s fast-growing population and school district, which are outpacing other markets around the state in terms of growth, made this a strong sale for the buyer," Rockspring Capital president and CEO Jim McAlister IV said in announcing the sale. "We had many prospects interested in the space, especially from single-family developers and builders. But in the end, working with the district on this deal was a great outcome for us and the owner."

In March, Katy ISD indicated plans for a future campus with both a high school and junior high school. Though the final price could not be confirmed, meeting minutes show the district planned to acquire a 157-acre parcel for no more than $6.7 million. 

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With information published by Kyle Hagerty