The construction of a new premier housing development in Ankeny could begin as soon as this fall, a representative for DRA Properties, the developer of the project, said.

The development is located in an area that has become increasingly popular since Costco opened near 36th Street and Interstate Highway 35 in 2022.

Pine Lake Estates will feature more than 300 lots and a 12-acre lake with a waterfall feature and a walking bridge, said Ashley Johnson, chief operating officer at DRA Properties.

There will also be a 6-acre community park that will be developed by the city, she said.

That area of the city will be home to a new Ankeny elementary school. The area will feature townhomes and some light commercial and retail development along 36th Street that will serve as transitions, creating a buffer between the single-family homes in Pine Lake Estates, Johnson said.

“It’s supposed to be the next premier development in Ankeny with half-acre and some full-acre lots, which you don’t find very often in Ankeny,” she said. “The goal behind this is that our owner, Dennis Albaugh, wants to make this the best residential community he’s done to date.”

Johnson said the larger lots will provide an expanded feeling of living in the country, with all the amenities Ankeny has to offer nearby.

“You’re close to town but have some elbow room, especially those lots that back up to the lake; you don’t have a neighbor right behind you,” she said. “This will be a really nice suburban community.”

Roads are being put in for the first phase of development, which is being marketed by the Danielle Seifert Real Estate Professionals Group.

Seifert said more than 80 single-family lots will be part of the first phase of the Pine Lake Estates development, which “pairs luxury and sophistication with a family-focused lifestyle tailored for peace and quiet.”

“It’s poised to be one of the most anticipated [developments] in the metro,” she said.

Johnson said more than half of the lots in the first phase are already committed for, and how quickly the development takes to be fully built out will depend on what the market does.

That may depend on interest rates.

Current rates for 30-year mortgages are hovering just under 8%. Despite the uptick in rates in recent weeks, the outlook for new home starts is showing signs of optimism.

The Des Moines area saw a 5.5% increase in the number of building permits issued in 2023 for new home construction, according to a review of permits by the Business Record.

There were 3,422 permits for new home construction last year in Polk County and 13 communities. That is up from 3,243 permits issued in 2022, but still below the 4,361 issued in 2021, the review showed.

A National Home Association Builders/Wells Fargo Housing Market Index showed signs of  improved optimism, too. The index measures home builders’ views on market conditions. A score over 50 indicates builders view conditions as good. A score under 50 indicates a poor view of conditions.

The latest survey in January showed an index score of 44, the highest it’s been since September and the third straight month the index has increased.

According to Creighton Cox, managing owner of Urbandale-based C2 Consultants Inc., new home starts might not take off as quickly as some hope until mortgage rates drop closer to 6%.

“I think if rates get closer to that 6% number, we’ll start to see more new-home purchases, which could be a boost for home construction,” Cox said in a Business Record story published earlier this year.

Seifert said she is “fairly certain that the market was long overdue for a north Ankeny luxury development,” when the lots were released for sale.

“The sales have proven this theory right as we have less than half of the lots left for sale and we weren’t predicting lots to be delivered until the third quarter,” she said. “With this pent-up market need, I think we will see the remaining lots move quickly in 2025 once the neighborhood starts taking shape.”

Derek Lord, Ankeny’s director of economic development, said Pine Lake Estates is “unique in that it is centered around a large water feature and is a high-quality, intentionally planned development that continues to increase the different housing options in our community.”

He said its proximity to Interstate Highway 35 also makes it attractive.

“[It] makes all the regional attractions a very short drive, including those in Ames,” Lord said in an emailed statement.

Lord said the development is in an area that has received increased interest since Costco opened.

“The Pine Lakes development continues to build out critical infrastructure that will support future commercial and retail development on the city’s northeast side,” he said.