Posted: Mon, 25 May 2009 11:10 AM - 15,441 Readers

By: Tim Eaton

Lenders have posted a $43.7 million resort home development on the north shore of Lake Travis for foreclosure, according to RexReport.com, a San Antonio company that tracks foreclosures.

The posting includes land and lots in several subdivisions owned by MDR Hollows LP, the developer of the Hollows resort, which is in both Jonestown and Lago Vista.

Spokespeople for MDR Hollows did not respond to requests for comment.

But Paige Saenz, Jonestown's city attorney, said Friday that city officials are in touch with the developers and are waiting for them to explain their plans.

"We've given them until next week." Saenz said. "We would like for this to be worked out so the project can keep going."

Lago Vista City Manager Bill Angelo said he had not heard about the foreclosure but said he knew the project had lost an investor and had stopped construction.

"I'm not totally surprised, with the economic conditions that exist out there," he said. "We're hoping that it will turn around."

Angelo said he and his staff intend to meet with the developers soon.

The resort's Web site describes the Hollows as "a paradise deep in the heart of Texas." The development includes casitas priced between $420,000 and $650,000, home sites ranging from $94,500 to $119,500 and villas costing between $180,000 and $550,000.

The Travis Central Appraisal District lists MDR Hollows as the owner of 212 pieces of land.

The resort's amenities include a marina, beach club and hiking trails. It's not clear whether those are part of the foreclosure.

Macfarlan Capital Partners LP, a Dallas-based real estate investment firm, bought the Hollows and other developments last year from a subsidiary of Centex Homes.

Macfarlan paid $181 million for five properties, which included the Waters at Horseshoe Bay on Lake LBJ, Pointe West in Galveston and properties in other states. Macfarlan's Terramesa Resort Properties division oversees the Hollows and the other properties.

The Hollows is one of the largest recent commercial foreclosures in Central Texas.

In March, lenders foreclosed on the $120 million River Place Corporate Park in far Northwest Austin.

Last month, lenders foreclosed on the Hill Country Galleria in Bee Cave, which had been unable to refinance a $192 million construction loan.