The Preserve at Lakeway
Dramatic Lakes and Wildlife Views From New Homesites
By Jerry Shields

An investor group led by Austin’s Cosmo Palmieri is developing more than 100 acres of pristine rolling hills in Lakeway, a project expected to produce 350 new homes and generate an estimated $100 million in new tax revenues to the city and Travis County.

The Preserve at Lakeway is spotted with an abundance of shady oak trees and offers sweeping views of both Lake Austin and Lake Travis as well as the city. While abutting the approximately 3,000-acre Balcones Canyon Conservation Land, this property borders what is considered the largest contiguous preserve land in the area.

“Our development site is the highest point around and the views in any direction are just awesome,” says Palmieri, pointing out that even the area’s golf courses can be seen opposite the nature preserve. “Such views and peace and tranquility so close to the conveniences of a city are a rare find.”

The Preserve at Lakeway, nearing completion of the first phase of construction, is located on the east side of Highway 620 with its boulevard entry, Dave Drive, just 500 feet south of Lakeway Boulevard.

Lakeway and the entire Lake Travis area is the fastest growing community in the Austin area, home to many of the executives and employees of the region’s high-tech industry. Many have chosen the quieter lake area as home because of the relatively short commute to downtown Austin and the Austin-Bergstrom International Airport.

Families with young children enjoy the award-winning Lake Travis School District and the prospect of the nearby University of Texas. Retirees and adults of all ages can avail themselves of the numerous nearby, world-class golf courses or the many fine dining and cultural events in Lakeway and the Central Texas region.

Palmieri is the initiator of the Preserve at Lakeway. A University of Texas graduate, former Longhorn football player and an Austin-area developer since 1994, he brought together a team of investors in 1999, buying up a large number of individually owned lots originally platted in 1970 to form the nucleus of the development area. The City of Lakeway then annexed the property in December 2001.

“Annexation by the city is significant in that it will not only increase the city’s tax base considerably, but it will bring city police and fire protection to our future homeowners – as well as city amenities like the new Aqua Center and discounts to local golf courses,” says Palmieri.

Equally important, he says, the annexation brings the development under the umbrella of city building codes and restrictions – such as landscaping, roof colors, parking and more – which ensures that new home values are maintained.

Projected as a four-phase development with total build-out expected by 2005, Palmieri says he and his partners are “nearing agreement” with an Austin-area home builder for the second phase of the project. Most of the 60 lots available in the first phase are already allocated and six condo units have been completed by Sendero Homes of Austin, with others underway.

“The entire project will have a high-end look and, in consideration of today’s economy, home lots of one-third acre to one-half acre are priced at below the market average for the area,” says Palmieri, emphasizing that doing so will enable builders to better compete and yet offer all the expected amenities.

Depending on the location, first phase condominiums and single-family homes are priced from the low $190’s to the low $300’s. The most expensive lots will be those which abut the nature preserve along two sides of the development.

“It’s kind of special to have a beautiful nature preserve as your backyard,” says Lance Haley, one of the partners of the investor group and another University of Texas graduate. “You get a nice green buffer between you and the rest of the world and yet you’re still in the city.”

Preserve or no preserve, says Haley, all the homes can be expected to have elevations permitting dramatic views of the tranquil surroundings.

Palmieri says all the development’s roads are already roughed in and will later include curbs and gutters. Water lines with service from the local WCID#17 are installed as are the underground electric lines and wastewater lines.

“This is the first installation of wastewater lines on the east side of Highway 620 and is a big deal in several respects,” Palmieri says of the overall $8 million construction of the development’s infrastructure. “First, it will lead to other high-end growth on the east side, and second, it actually helps our builders in the sitting of a new home on any particular lot. Septic tanks, besides often being a nuisance, can hinder how a house is situated and designed.”

Palmieri and Haley, friends and schoolmates since the age of 10, note that the other partners in the development are Fred Purcell and Kelly Gray.

As a group, the four considerably experienced partners have been active over recent years, developing such Austin landmarks as the Polo Club near Dripping Springs, and Wood Island on Lake Austin. Also developed were Grandview Hills, Band of the West at Bee Cave and Highway 360, Eagle Ridge in Round Rock and Old Town Village in Leander.

Other Austin-area projects include the Mansfield Estates on Lake Travis, Angel Pass at Long Canyon on FM 2222 and the prestigious million dollar-plus homes of Coldwater Canyon in Northwest Austin.

“Each project we do, of course, we are excited by the vision and then the final result and always believe we outdid ourselves once again,” says Palmieri. “This development, the Preserve at Lakeway, is going to be one of those where you will wonder, just how can it get any better?”