One of Rockwall's highest-profile developments has been purchased by a Dallas-based investment and development group.

PegasusAblon has bought The Harbor development on Lake Ray Hubbard with plans to upgrade the property.

PegasusAblon acquired the 130,000-square-foot retail and restaurant portion of The Harbor and land for additional construction.

"The Harbor is one of the few outstanding lakefront properties within a quick 30-minute drive from most of D-FW," said PegasusAblon principal Michael Ablon. "We intend to infuse life and activity into this outstanding Rockwall centerpiece on Lake Ray Hubbard.

"We want to update and refresh the project and bring a set of local restaurateurs."

PegasusAblon bought The Harbor from a lender. Terms of the transaction were not disclosed.

Over the decade since the project opened, The Harbor suffered financial setbacks including bankruptcy and foreclosure. The project originally cost more than $30 million.

The retail development at Interstate 30 and the lake, which includes a Cinemark Theater, is about 80 percent leased.

"It's an incredible piece of underutilized real estate," Ablon said.

PegasusAblon's purchase does not include the adjoining Hilton Hotel.

SHOP Cos.' Tommy Tucker and Tim Axilrod brokered The Harbor sale with Randy Fleischer of JLL. The Harbor will be leased by Steve Ewing and Edge Realty and managed by CBRE.

The Rockwall purchase is the latest in a string of high-profile projects for PegasusAblon.

The Dallas real estate firm was one of the first major investors in the booming Design District near downtown.

And PegasusAblon is building an office project in North Dallas' Preston Center district.