What thrived during the Texas coast recession is a story how two developers came out smelling like a rose.
Lessons learned from two “high-end real estate project developers” that thrived during the worse recession and storms to hit the Texas coast in history. A silver lining from the unfortunate times the region experienced from 2008 to 2012, and a testimony to enduring value.
At TexasGulfCoastOnline.com we have a criteria list we use to determine the rare and remarkable projects on the Texas coast.
Here is how we pick them:
- The properties being built, as well as the location, have to be rare and unique.
- The owners and developers of the projects must be reputable and solidly financed.
- An impressive amenities package must be offered both in the individual homes as well as the community – and must exceed what is already available in the local area.
- A good marketing plan and sales operation team must be in place to ensure the project’s success.
- The project must not have major erosion and insurance issues.
- The project should have energy efficient and storm resistant features.
- The project design and price range should fit with the buyer profile for the area, and its surrounding properties.
- The project and personnel must be in good standing with the local community.
- The project must have sound market fundamentals such as rental income vs. price and supply vs. demand, predicting a safe investment.
The only two high-end developers and their projects that thrived during the hard times:
- Cinnamon Shore, Port Aransas – Seaoats Group – Port Aransas http://www.cinnamonshore.com/
- Los Corales, South Padre Island, Paez Development – South Padre Island http://paezdevelopment.com/
The projects that didn’t do so well and why :
- Laguna Harbor, Port Bolivar – highly leveraged | project stalled
- Biscayne, Crystal Beach – lack of interest by owner | project stalled
- Beachtown, Galveston – east side location price mismatch | project stalled
- Palisade Palms, Galveston – east side location price mismatch | auctioned
- Emerald By Sea, Galveston – highly leveraged | bank owned
- Diamond Beach, Galveston- highly leveraged | bank owned
- Point West, Galveston – detached ownership and remote location | project stalled
- Palmilla Beach Resort and Golf Club, Port Aransas - detached ownership, golf course | project stalled
- Sapphire South Padre – highly leveraged | bank owned
- South Padre Island Golf Club – detached ownership, golf course | project stalled
Projects that completely failed and the main reasons why:
- Avocet, Crystal Beach – lacked leadership and highly leveraged
- Sanctuary at La Costa Grande, Port Lavaca – detached ownership, remote location and marketing gimmicks
- Tortuga Dunes, Mustang Island – federally uninsured location in CBRA zone
- Pirates Cove, Port Isabel – priced too high for location
Winning High-end Real Estate Project Takeaways
- Great development leadership
- Good location / value
- Solid Market Fundamentals
- Strong Financial Backing
- Commitment to local community
- High-rises & Inclusive Resorts
Losing High-end Real Estate Project Takeaways
- Inexperienced developer
- Location price mismatch
- Problem with Market Fundamentals
- Highly leveraged project
- Environment issue
- Coastal Golf courses