GALVESTON | Development Updates

[NIKKI]

Regatta Galveston
http://img89.imageshack.us/img89/5914/regattanq0.jpg

East Beach Resort and Spa
http://img214.imageshack.us/img214/9794/ebrendering3zq.jpg

Emerald
http://www.gunn.net/images/EBTS-rendering08-30-04.jpg

http://images.galvnews.com//photos/2006.October/10-04-HIGH-RISE.jpg

Beaux Art Building
http://img212.imageshack.us/img212/8725/ui90vh3.jpg

Diamond Beach
http://www.gunn.net/images/diamondbeach/db-exterior-full.jpg

Seahorse Condos
http://img65.imageshack.us/img65/5624/sskz5.jpg

Beachtown Galveston
http://img338.imageshack.us/img338/5060/aa2jw8.jpg

http://img187.imageshack.us/img187/9522/aakv8.jpg

http://img187.imageshack.us/img187/5765/aa3la4.jpg

Island Grove
http://img205.imageshack.us/img205/5894/islandft4.jpg

Galveston National Laboratory
http://www.hayneswhaley.com/project_images/GalvestonNationalLab.jpg

[Shasta]

That East Beach Resort is mammoth. 366 units starting at $700,000. That seems really high, but people said the same thing about the Trade Winds and Beach Club Towers that both sold enough to now be under construction. Guess we'll see.

Here's another smaller project called the Ocean Lofts
http://www.cisnerosdesignstudio.com/oceanlofts1.jpg

[NIKKI]

^^ This is what's blocking that particular development Shasta

http://www.islandofgalveston.com/Streets/Seawall/SSGalveston/SSGalvestonNow.jpg

Is the ship-shaped Mayflower Inn in Galveston about to sink? Unconfirmed rumors have it that demolition will soon begin. If anyone knows, it’s the city. But officials responsible for tracking such permits aren’t returning calls and developers aren’t available for comment. Developers have said they plan to build condominiums at the 802 Seawall Blvd. site. But not everyone is happy. Neighbors worry about a high-rise blocking views and sea breezes. And lovers of quirky architect would like to see the hotel preserved. The hotel was built in 1941 along a design by Architect Ben Milam. The hotel is fashioned after a ship and is a rare example of mimetic architecture. Stay tuned.

October 12, 2006

http://galvestondailynews.com/blog.lasso?view=view%20blog&blog=BuzzBlog

[OhioGuy]

The Mayflower is ugly. I wouldn't be at all opposed to the wrecking ball doing a number on it.

[NIKKI]

Stella Mare Village

http://img216.imageshack.us/img216/4004/stellamare2um8.jpg

http://img214.imageshack.us/img214/263/stellamare1ny6.jpg

[NIKKI]

http://www.barefootgalveston.com/images/14883_logo.gif

http://www.barefootgalveston.com/images/14883_render.jpg

[MichaelB]

What provisions or precautions are being made in costruction techniques to compensate for hurricanes with all these developments?

[Double L]

Good to see Galveston urbanizing. I particularly like to see these large scale neighborhood developments like Beach Town and Stella Mare. Hopefully we keep diverse price ranges.

As for the hurricanes. I think the seawall is considered mostly efficient for preventing large scale hurricane damage. When Rita hit the biggest thing was the fire on the strand. Most damage can be fixed up as long as you avoid flooding so the seawall and further projects should do us good.

[Boris]

Townhome complex planned for Galveston

http://images.chron.com/photos/2006/12/07/4412067/311xInlineGallery.jpg


By NANCY SARNOFF
Copyright 2006 Houston Chronicle

A Dallas-based developer is planning a 100-unit townhome complex on the West End of Galveston as the market for coastal living grows.

Libby Commercial Realty is developing the three-story project, called Cove View Townhomes.

Located in Campeche Cove, behind the Seawall between FM 3005 and Stewart Road, the $23 million development has been designed with a Mediterranean flair by Galveston-based Michael Gaertner Architects.

http://www.chron.com/disp/story.mpl/business/4390506.html

[Mopacs]

Here are a few pics I took last month in Galvez:
Palisade Palm twin towers emerging big time

http://images19.fotki.com/v34/photos/5/54967/4277757/P1150787-vi.jpg

Prominently situated, driving east on Seawall Blvd

http://images20.fotki.com/v356/photos/5/54967/4277762/DSCN0854-vi.jpg

http://images20.fotki.com/v360/photos/5/54967/4277762/DSCN0862-vi.jpg

http://images19.fotki.com/v358/photos/5/54967/4277762/P1150728-vi.jpg

http://images9.fotki.com/v182/photos/5/54967/4277757/DSCN0902-vi.jpg

http://images20.fotki.com/v356/photos/5/54967/4277757/DSCN0899-vi.jpg

http://images19.fotki.com/v358/photos/5/54967/4277757/DSCN0900-vi.jpg

http://images20.fotki.com/v356/photos/5/54967/4277757/DSCN0905-vi.jpg

http://images20.fotki.com/v356/photos/5/54967/4277757/DSCN0904-vi.jpg

http://images19.fotki.com/v34/photos/5/54967/4277757/DSCN0908-vi.jpg

http://images20.fotki.com/v360/photos/5/54967/4277757/DSCN0909-vi.jpg

http://images20.fotki.com/v360/photos/5/54967/4277757/P1150776-vi.jpg


http://images20.fotki.com/v357/photos/5/54967/4277757/DSCN0889-vi.jpg

http://images19.fotki.com/v276/photos/5/54967/4277757/P1150761-vi.jpg

http://images20.fotki.com/v357/photos/5/54967/4277757/DSCN0892-vi.jpg

http://images19.fotki.com/v358/photos/5/54967/4277757/P1150889-vi.jpg

[vjhe]

^

Um, WOW!!!! Although it certainly makes sense, it never occurred to me the Palisade Palms would be so visible from the Sea Wall. Talk about completely altering Galveston's skyline.

[KevinFromTexas]

These are supposed to be the new tallest buildings in Galveston. They're 382 feet each with 27 floors.

[JManc]

someone now needs to bulldoze the wal-mart and the academy and replace them with more highrises and we'll be on a roll.

[glowrock]

Agreed, jmancuso... In fact, I can think of a LOT of things that need to be bulldozed on or near Seawall! :D

Aaron (Glowrock)

[NIKKI]

Tuscany - Galveston

http://www.newbeachfrontcondos.com/images/TLogo.png
http://www.newbeachfrontcondos.com/images/Tuscany%20Rendering.jpg

http://www.newbeachfrontcondos.com/images/pool.jpg

[Boris]

................

I know I'm probably in the minority about this, but I think the Mayflower is cool looking. It should be fixed up rather than bulldozed.

http://www.islandofgalveston.com/Streets/Seawall/SSGalveston/SSGalvestonNow.jpg

[Trae]

Galveston is doing pretty good. A few more high-rises and a fixed up beach (water and sand) and this place will be good to go.

[MichaelB]

................

I know I'm probably in the minority about this, but I think the Mayflower is cool looking. It should be fixed up rather than bulldozed.



Minority perhaps...... but not alone! I agree.... It is really a unique landmark. It certainly represents an era of resort architecture that I think is fun! Galveston would be well served, in terms of urban texture, to not give into total gentrification!

Can anyone tell me where this is on the island? I will be there next Monday and would love to get some pictures.

[NIKKI]

Minority perhaps...... but not alone! I agree.... It is really a unique landmark. It certainly represents an era of resort architecture that I think is fun! Galveston would be well served, in terms of urban texture, to not give into total gentrification!

Can anyone tell me where this is on the island? I will be there next Monday and would love to get some pictures.

802 Seawall Blvd.

[MichaelB]

802 Seawall Blvd.

Thank you very much! Good thread.... !

[NIKKI]

http://www.endeavourcondo.com/images/offats-bayou-lg.jpg

http://img111.imageshack.us/img111/5159/endws0.jpg

In fall 2006, Endeavour Holdings announced plans for Endeavour Galveston on Offats Bayou, a luxury condominium community located on Offats Bayou on Galveston Island, Texas. It will be the featured on-site residential component of Endeavour Marina Galveston, a mixed-use project with retail outlets and a marina.

Construction is scheduled to begin first quarter 2008.

For more information on Endeavour Galveston on Offats Bayou, call 281-326-1200

http://www.endeavourcondo.com/offats-bayou.htm

[JACKinBeantown]

................

I know I'm probably in the minority about this, but I think the Mayflower is cool looking. It should be fixed up rather than bulldozed.

http://www.islandofgalveston.com/Streets/Seawall/SSGalveston/SSGalvestonNow.jpg

Ditto.

[Wattleigh]

A few updates since this isn't a sticky...

Diamond Beach began construction in late September/early October at the end of the seawall and is coming along quite nicely.

The towers of Palisade Palms are essentially complete at this point. Move-in has been said to be around this time...

The large "Preserve at West Beach" development has been approved by the city council. It would encompass 1,000+ acres on the west end and include homes, a marina, a 15 story hotel and 360 acres included as a small wildlife area.

There has also been talk of a 12-story condo called "The Presidio" located along Seawall Boulevard at 41st street on the old USCG housing site.

I'm sure there have been a few things I've missed.

[Wattleigh]

http://news.galvestondailynews.com/story.lasso?ewcd=475f5457f481905b

City council approves 9-story hotel

By Leigh Jones
The Daily News
Published January 11, 2008

GALVESTON — The city council on Thursday unanimously approved a specific-use permit for a nine-story hotel on Seawall Boulevard — only the third tall building the group has approved in the past 15 months.

Property owners Thu and Bock Lam plan to replace the Budget Inn, at 802 Ave. L, with a 108-room boutique hotel, something the council said would bring much-needed revitalization to a depressed area.

More than 100 people attended Thursday’s meeting, and the 32 who spoke were evenly divided between support for and opposition to the project.

Several of the property’s immediate neighbors begged the council to approve the project, saying it was a big improvement over the crime-ridden, eyesore there now.

But others, some of whom came from as far away as the island’s West End, told council no amount of economic or aesthetic benefit could make up for ruining the island’s skyline with another tall building.

“I am in favor of the demolition of the inn, but the devil is in the details,” said Patrick Doyle. “To put it in Texas terms, it’s too big a horse for the saddle they’re trying to put it in.”

The 95-foot-tall building will fill the entire eastern side of the block between avenues L and K along Eighth Street. Doyle and other opponents said a building of that height should be set back from the street and be surrounded by landscaping.

But other neighbors said they could live with the building’s size because of other compromises in the plans.

“They have come to our meetings and taken our suggestions,” said Joan Mertens. “We decided it would be better if they put commercial on the ground floor. They accepted that idea and many others. They worked with us.”

The Lams also dropped plans for a separate parking garage behind the building and changed the exterior design from a modern style to one that resembles the Tremont House.

While Thursday’s crowd was evenly divided, a majority of people who live within 500 feet of the project returned notices to city hall saying they supported the hotel. Only 19 of the 101 notices were returned, with 13 in favor, five in opposition and one no comment.

After meeting with the council during its workshop meeting, Siddiqui also agreed to donate three houses that must be moved to make room for the new hotel to the Galveston Housing Finance Corporation. The houses will be moved to vacant lots owned by the city, renovated and sold to low- to moderate-income families.

The Lams hope to sign a deal with InterContinental Hotels Group for an Indigo Hotel franchise. If they don’t get it, or another franchise with a national chain, the permit will expire.

Although the Lams would not commit to demolishing the Budget Inn immediately, a request made by Councilmember Barbara Roberts, Thu Lam did agree to hire an off-duty police officer to help reduce criminal activity around the property overnight on weekends.

[KevinFromTexas]

But others, some of whom came from as far away as the island’s West End, told council no amount of economic or aesthetic benefit could make up for ruining the island’s skyline with another tall building.

:no: It's only 95 feet tall folks. Galveston probably had taller buildings before the 1900 storm.

My only concern would be that the quality of the architecture of these new projects be on par with Galveston's culture and history. Sadly, some of the newer condo projects are cheap looking. Emerald by the Sea (which is 3 blocks up Seawall) is one of these that comes to mind. That tower is at least twice the height of this new hotel by the way.

[NIKKI]

:no: It's only 95 feet tall folks. Galveston probably had taller buildings before the 1900 storm.

My only concern would be that the quality of the architecture of these new projects be on par with Galveston's culture and history. Sadly, some of the newer condo projects are cheap looking. Emerald by the Sea (which is 3 blocks up Seawall) is one of these that comes to mind. That tower is at least twice the height of this new hotel by the way.

The owner said this project's exterior will be modeled after the Tremont House hotel in downtown Galveston

Tremont House
http://img265.imageshack.us/img265/3140/bnhs0.jpg

[KevinFromTexas]

Good to hear. Hopefully they will be true to the quality of that building. If so, then it'll be a beautiful building. I actually think Seawall could use more buildings. Some of what's there doesn't deserve to front the Gulf of Mexico. I wish they could take notes from the quality of the architecture and density of downtown, and bring it to Seawall.

[Wattleigh]

http://galvestondailynews.com/story.lasso?ewcd=4183ecd5e4ccbe92
Sullivans tapped for East End Flats project

By Leigh Jones
The Daily News
Published January 25, 2008

GALVESTON — The city’s Redevelopment Authority on Thursday recommended the city council enter into an agreement with Sullivan Interests to develop the East End Flats.

The local company was one of three firms to respond to the city’s request for information from private sector developers interested in working to reclaim the dredge spoils site to create a master planned community.

The flats, 600 acres east of Ferry Road and north of Seawall Boulevard, belong to the U.S. Army Corps of Engineers. But, under a deal decades in the making, the federal government has agreed to let the city purchase the property and put it on the tax rolls.

Jeff Sjostrom, Redevelopment Authority member and president of the Galveston Economic Development Partnership, said the group chose the Sullivans because of their experience in dealing with dredge material and their willingness to commit $500,000 toward legal expenses associated with completing the land-transfer process.

The city must pay the corps fair market value for the land and provide an alternate spoils dump site for future dredging projects to acquire the property.

But Billy Sullivan told the city council the project’s biggest obstacle would be getting the corps to drop a requirement that the city be responsible for the cost of dredge spoil disposal for the next 20 years.

Sullivan said he and his brothers had researched the issue and identified situations involving other federally owned property in which the government had dropped such requirements. The company’s initial financial investment will pay to hire legal teams to work out the details of such a deal.

In their proposal, the Sullivans estimate that stabilizing the dredge material already on site, which is necessary before construction can begin, will cost $75 million. Stabilization of the first phase of development, about 90 acres at the edge of the site, could cost $11.7 million.

The city has permission to purchase only the first 100 acres of the site, but federal officials have agreed in principle to sell the entire property.

The proposed development agreement will cover the first phase, but the Sullivans will have first right of refusal to continue with the rest of the project if the city is able to buy the land.

Although the Sullivans are best known for their residential development projects, including the Evia subdivision, the family’s recent experience includes doing construction work for the Port of Galveston, which included moving 100,000 cubic yards of dredge material.

Sullivan told the council he was able to do the work more cheaply than any other contractor he contacted.

Construction at the site is not likely to begin for about two years, if Sullivan can work out a deal between the city and the corps to transfer ownership of the land.

The first phase likely would include an independent and assisted living facility flanked by commercial or research developments.

[Wattleigh]

Feb. 10, 2008, 10:47PM

Tourists, take note: Galveston is planning face-lift

The island hopes to prove it's not just for beachgoers


By HARVEY RICE
Copyright 2008 Houston Chronicle

GALVESTON — An effort to transform a tract of wetlands on the east end of Galveston Island into a world-class ecotourism park is one of several projects expected to make the city more attractive to tourists.

Other projects include a skateboard park with a distinctive feature that is expected to attract skateboarders nationally, a new beachside gymnasium, a new tourism information center and a rebuilt city golf course.

Each plan came about for its own set of reasons rather than as part of a master plan, but together they may give Houstonians and others a new set of reasons to spend a weekend on the island.

The plan for an ecotourism park evolved after the federal government turned over the 230-acre former U.S. Coast Guard Loran Base property to the city, which combined with city-owned land forms the 686-acre East End Lagoon property, city spokeswoman Alicia Cahill said.

To get the federal property, the city agreed to undertake a master plan that will include a nature center and trails for public access, she said.

Mayor Lyda Ann Thomas appointed an independent organization, the Galveston Island Nature Tourism Council, to raise an undetermined amount of money for the lagoon park master plan, expected to include bird-watching areas for viewing the two-thirds of North American bird species that use migration routes crossing the island, Cahill said.

Trails for kayaking, walking, hiking and jogging also are planned.

The property is now open to the public and encompasses Apffel Park and Big Reef Park.

In addition, the city broke ground last month for an 11,000-square-foot skateboard park in Menard Park at 27th Street and Seawall Boulevard that is expected to open in April. The park will have a one-of-a-kind feature, known as a cradle, that will allow skateboarders to perform a loop in which they would be upside down for a moment, said Rhonda Gregg, project manager for an engineering company and a skateboarding enthusiast.

The cradle is similar in shape to a tennis ball sliced in half and one of the halves placed on its side, said Micah Shapiro, lead designer for Grindline, the Seattle company that is building the park.

Shapiro said Grindline, whose only business is building skateboard parks, designed the Galveston cradle with a distinctive V-shape that flares to the outside.

"There is nothing like it in the world," Shapiro said.

He predicted that Houston skateboarders, along with skateboarders from the region and the nation, would be drawn to the park because of its exclusive design. The beachside location should make it a draw for combination skateboard and surfing contests and demonstrations, Gregg said.

Gregg, who says she is "over 40," helped convince the city to find money to help finance the skateboard park. The city is paying about $285,000 toward the $350,000 cost and the remainder is being paid through donations.

The engineering was donated by Gregg's company, Shell Engineering, which had to incorporate extra structural steel to make sure the design could withstand hurricane-force winds, Gregg said.

The city hopes that many non-skateboarders will be drawn to the refurbished city golf course when it reopens in July.

The Moody Foundation, which owns the Moody Gardens tourist attraction and convention center nearby, is spending more that $14 million with the intention of making it one of the best courses in Texas.

In return, the city will allow its golf course to be called "Moody Gardens Golf Course on Galveston Island, a Premier Public Golf Course."

The entire course was stripped and returfed, several holes were reconfigured and the clubhouse remodeled.

Meanwhile, beachgoers will have access to the new $3.6 million McGuire-Dent Recreation Center in Menard Park at 27th Street and Seawall Boulevard that is expected to be completed by the end of the year.

The center will have a full-service basketball court, two racquetball courts, a fitness center, locker room, showers, game rooms and a computer room.

"It's an open area for anyone to come in," said Assistant City Manager Lloyd Rinderer. "We don't really ask for residency requirements."

The center will have a transportation lobby with a waiting room and bus schedules, Rinderer said.

The city Park Board is working on moving its tourism information center from 2027 61st St. to near the main entrance of Stewart Beach Park at Sixth Street and Seawall Boulevard.

The board hopes to have a tourism center built in three to five years that is big enough to accommodate tour buses, with restrooms and ample parking space, said Lou Muller, Park Board director.

harvey.rice@chron.com

[Wattleigh]

Monday, February 11, 2008 - 9:45 AM CST

http://www.bizjournals.com/houston/stories/2008/02/11/daily1.html?f=et63&ana=e_du

New $90 million UTMB Galveston research facility approved

Houston Business Journal - by Monica Perin

The University of Texas System Board of Regents has approved a proposal by the University of Texas Medical Branch at Galveston to build a $90 million general research facility.

Plans call for the new University Boulevard Research Building to be built at Sixth Street and Harborside Drive, across the street from UTMB's Primary Care Pavilion. Construction is expected to begin in early 2010 with completion in 2012.

Funding includes $30.5 million from the UT System's Permanent University Fund, $29.5 from revenue bonds and the remainder from gifts.

The four-five-story research facility will be about 140,000 square feet, with 76,000 square feet dedicated to research. This will increase by 20 percent the amount of space UTMB devotes to research.

"This research building will allow UTMB to better serve our current research faculty and allow us to attract world-class researchers to Galveston," said Garland D. Anderson, dean of the School of Medicine.

"Our goal over the next decade is to substantially increase our research funding, particularly in the basic research departments, and a new state-of-the-art research building will be essential to achieving that goal."

[Wattleigh]

http://www.bizjournals.com/houston/stories/2008/02/11/story1.html
Friday, February 8, 2008

Yacht project super-sized
Endeavour launches Galveston marina to land larger boats

Houston Business Journal - by Jennifer Dawson Houston Business Journal

Well-heeled Houston mariners are buying bigger yachts, but finding safe harbor close to home is a problem. Large boat slips are in short supply.

Robin Parsley is floating a project to change all that. The president of Endeavour Holdings Inc. plans to develop a Galveston marina capable of accommodating the biggest yachts, possibly as large as 250 feet long.

"We're building a marina that will be one of the first destinations for mega-yachts in Texas," says Parsley.

Plans for the $110 million project also include retail space and condo units.

The entire article should be online within a few days...

[Wattleigh]

http://galvestondailynews.com//photos/2008.March/0219_LOC_Emerald1jr.jpg
-Photo by Jennifer Reynolds

Cheryl Price, a Realtor with Personette Associates, talks about the pool area at the Emerald by the Sea condominiums at Sixth Street and Seawall Boulevard. The high-rise should be finished by month's end.

Emerald opens; high-rises buck housing slump

By Laura Elder
The Daily News
Published March 9, 2008

After some delay, the high-rise tower Emerald by the Sea, a forerunner in the skyline-altering island condominium boom, is scheduled for completion by month’s end.

Sunhill International Inc., developer of the 15-story project, said crews were making final touches to the white tower with green-tinted windows at 500 Seawall Blvd. on the East End.

The Emerald, which developers began building in March 2005, comes on line while demand for condominiums along the Texas coast remains strong, even as other housing sectors, including high-rise projects across the nation, languish.

The Emerald is among the most visible monuments to the island’s entry a few years ago into the luxury resort market. But more have followed and still more are certain to, said Jim Gaines, research economist for the Real Estate Center at Texas A&M University.

Condominium development on the island and elsewhere along the Texas coast may experience fits and starts, he said. But the high-rise market here has nowhere to go but up as baby boomers and second-home buyers gravitate to where luxury condominiums are still affordable and values are likely to increase.

‘One Of A Kind’

“It’s inevitable,” Gaines said. “You can see it coming.”

Houston real estate investor Barbara Quackenbush, who in May 2005 signed a contract for a 1,419-square-foot unit on the Emerald’s seventh floor, said she can see the market’s potential. Although Quackenbush was frustrated by delays in closing on the purchase, the final product was worth the wait, she said. The Quackenbush family and friends already have made use of the condominium, she said. She had considered other high-rise properties on the island, but settled on Emerald for its design, she said.

Quackenbush said she particularly liked the sweeping views of the island and the harbor.

“It’s one of a kind,” she said. “Seeing the cruise ships coming in on the weekends is just breathtaking.”

Quackenbush, a real estate attorney for ExxonMobil Corp., paid $445,000 for the unit, which she plans to eventually lease, and invested another $30,000 for custom shutters, furnishings, art and electronics, ceiling fans and closets, among other things.

“I wouldn’t sell the unit now for less than $650,000,” she said.

In November, Quackenbush became the third buyer to close on the purchase of an Emerald unit.

Cheryl Price, a Realtor with Personette & Associates, said all the Emerald’s units are spoken for and are in the title process.

As of last week, seven deeds were on file, according to records at the Galveston County Clerk’s office.

On Wednesday, Andy Hadley, a selling agent for the property who also is buying a unit on the 12th floor, said he had sold 82 of 108 units that are under contract.

The city of Galveston has issued certificates of occupancy for floors seven through 10. Floors one through five are for parking and storage. The sixth floor contains such common areas as an infinity pool, spa, theater room, wine room and other amenities.

High Expectations

Late last year, construction stalled as the developer and contractor G.T. Leach Builders sorted out disputes. International Bank of Commerce, construction lender for Emerald by the Sea, agreed to inject more funding into the project to resolve contractor liens and get construction back under way.

Delays in such large projects are inevitable, said Quackenbush, who owns seven investment properties.

Quackenbush had wanted to close on the unit in May last year, she said. But the developer wanted to wait until the sixth-floor common areas were complete.

Emerald prices range from $375,000 to $1.5 million. Units range in size from 1,014 square feet to 1,776 square feet. Penthouse units range in size from 2,383 square feet to 2,751 square feet.

Emerald by the Sea arose on the old Jack Tar Hotel site, a tract of land upon which developers through the years planned and promised projects that never materialized. Expectations for the project were high.

Randall Davis Touch

In the summer of 2004, when Houston developer Randall Davis announced he was involved, interest and confidence in the project surged.

Davis’ luxury projects in Houston and Las Vegas earned him a solid reputation in the luxury loft business. His developments include a 65-unit Art Deco loft building on the famed Las Vegas strip. He’s credited with reviving Houston’s downtown by transforming historical buildings into urban lofts.

In July, Davis said he no longer was involved in the project. He had been a fee developer, meaning Sunhill International called upon his expertise while maintaining ownership and control of the project.

Davis, who is developing a luxury condominium project on the island’s West End, said disagreements about compensation were settled through arbitration.

Some prospective Emerald by the Sea buyers have sought return of their deposits because of construction delays and after learning that Davis was no longer involved in the project.

David Hass and F.L. Riederer assert in a Feb. 8 lawsuit filed in Galveston’s 212th District Court that they were told by the sellers the condominium would be complete in March 2007. Hass and Riederer are seeking return of $27,500 in earnest money on what would have been a $555,000 purchase.

But in a Feb. 25 correspondence — obtained by The Daily News — with another prospective buyer seeking the return of earnest money, legal counsel representing the condominium development said that Randall Davis helped design Emerald by the Sea and there had been no deviations from design plans. Contractor G.T. Leach builds other Randall Davis properties, according to the correspondence.

“The quality of the property therefore did not change as a result of Randall Davis Co.’s involvement or lack thereof,” according to the correspondence.

Mary Jo Naschke, a spokeswoman for the project, said it wasn’t unusual for some early investors, who were hoping to resell quickly for a profit, to change their minds.

Market Shakeout

“People invest thinking they’ll make a quick sale and return for their money and they really have no intention in living in the place,” Naschke said. “If time is not on their side and they can’t hold out, they tend to get angry because they panic.”

Tightening credit markets are shaking out some types of investors, those who buy during construction with intention of flipping the property for a profit. Flippers represented about 10 percent of the market, Gaines said. Nervous lenders aren’t so quick to finance such deals lately, he said.

Early on, some developers who declared their projects to be almost “sold out” before construction, were basing the claims on deals with buyers who were in it for a quick buck, Gaines said.

“You flat-out just lost some buyers,” he said. “Some who were looking to flip have canceled out or can’t get their financing.”

The island market isn’t immune to the mortgage market meltdown, which began with high default rates on subprime and other adjustable-rate mortgages made to borrowers with splotchy credit histories, but it is buffered, Gaines said.

Exotic mortgages and aggressive loan incentives inspired borrowers to buy what they couldn’t afford, with hopes of refinancing later at better rates. But when housing prices began to dip in late 2006, refinancing became tough. Defaults rose and the situation morphed into a global financial crisis.

Galveston Buffered

Galveston condo buyers are more likely to be affluent and therefore less discouraged by trouble in the credit markets, Gaines said.

“I think Galveston will do reasonably well,” Gaines said. “I don’t think it’s immune from everything going on in the housing market, and it’s not immune from tightening credit,” he said.

“People who are looking to buy condos are going to have to understand that the free and easy money of the last three and four years is not free and easy any more.”

But Galveston has an advantage over other Texas coastal markets, because it’s close to the vast Houston metroplex, he said. And there’s a strong demand for second homes among baby boomers and retirees, he said.

Bargain Prices

Also, Texas prices still are dirt cheap compared with Florida and California condominium markets, Gaines said.

Luxury condominium units still can be had for about $400,000 along the Texas coast, he said. But that’s soon to change, he said.

As the market evolves in 10 years to 15 years, those same units could be selling from $500,000 to $1 million, he said.

Not a week goes by that Gaines isn’t getting calls about the Texas coastal condominium market, either from news organizations or groups representing retirees, he said.

Sales of condos for the period Oct. 1 to Jan. 31 rose 31 percent — from 39 units to 51 units — compared with the same period a year before, according to the Galveston Association of Realtors. The average price of a condo in that period rose 8.1 percent to $205,500.

A Good Year

David Bloom, CEO of Galveston Real Estate Resource and operator of www.CondosofGalveston.com, predicts the island condo market is poised for a strong year.

Proximity to Houston, affordable prices and wide range of product — especially compared with markets such as those in California or Florida — bolster the island market, Bloom said.

“The unique attraction of the island condo market is the diverse selection of properties to choose from, as well as pricing that fits most budgets,” he said. “Currently, there are a number of condos on the market priced in the ($60,000s), which are very attractive to first-time buyers, most of whom live within a relatively short driving distance of Galveston.”

A booming energy market also is fueling Galveston condominium sales, he said.

“The strength of the Houston economy has created a new and very well qualified pool of prospective buyers and, at the same time, gas pump prices will play a much larger role in the public’s summer vacation plans,” he said. “Both aspects should bode well for the island’s overall economy this summer, especially our real estate market.”

+++

By The Numbers There are 368 condominiums listed for sale in the Galveston Multiple Listing Service. Pre-construction properties are not included.

Year-over-year, same-period comparisons for island condominium sales:

• Jan 1, 2008-Mar 5, 2008 — Sales: 24

• Jan 1, 2007-Mar 5, 2007— Sales: 22

• Jan 1, 2006-Mar 5, 2006 — Sales: 25

Most active properties with multiple unit sales in 2008: Marina Pointe, Pointe West, Club of the Isle

Source: www.CondosofGalveston.com

[Wattleigh]

http://www.galvnews.com/story.lasso?ewcd=873bfa15d2ab4e2f

http://galvestondailynews.com//photos/2008.April/0423_LOC_PPalms1-jr.jpg
Photo by Jennifer Reynolds

The Beach Club Tower at Palisade Palms looms over the pool area at the beach-front property. Both towers of the high-rise are set to open in May. Sales have been so strong owners are planning to add a third tower.


Third tower planned for Palisade Palms

By Laura Elder
The Daily News
Published April 23, 2008

GALVESTON — Development firm Falcon Group says it plans to add a twin-peaked, 300-unit tower to a project that already boasts the island’s tallest building — the $170 million East Beach residential high-rise Palisade Palms.

Word came as the developer said it would begin next month closing sales on units in the two existing 27-story towers on East Beach.

The addition will be designed as a single tower through the 20th floor, then split into two sections to its full height of about 27 stories.

Falcon Group’s plan to build a third tower comes as condominium developers across the nation, particularly in Florida, take huge financial hits in glutted markets where prices are plummeting.

But Richard G. Anderson, vice president of development for Falcon Group, said there was strong demand at Palisade Palms and a healthy thirst for beach-front properties along the Texas Coast.

Falcon Group reports that buyers have plunked down earnest money contracts on 92 percent of the 288-unit Palisade Palms, where prices range from $400,000 to $1.6 million. Sales are measured by actual closings, a process that will begin in early May, Anderson said.

About 20 percent of the condo buyers will make Palisade Palms their primary home, he said. That amount could increase as those who bought units as second homes retire and move to the island, which would boost the city’s economy, he said.

Falcon Group sought to discourage flippers — speculators buying during construction with the intention of flipping the property for profit — by requiring an earnest money deposit of 15 percent of a unit’s price.

Buyers aren’t as likely to walk away from earnest money deposits of, say, $150,000, Anderson said.

Some industry observers have estimated that flippers represented about 10 percent of the Texas coastal market.

Anderson said he’d have a better idea by August about how much demand for Palisade Palms was generated by speculators.

Falcon Group isn’t shrugging off a housing slow down caused partly by tightening credit. The firm is eyeing the economy closely before it moves forward with construction of the new tower.

Tightening credit, however, hasn’t been a big issue for the luxury development, where 20 percent of prospective buyers are paying cash, Anderson said.

The challenge to high-end buyers isn’t whether they can afford a condominium at Palisade Palms, but rather where the economy is headed and whether they should part with their cash, he said.

Although Palisade Palms is the island’s tallest building, Falcon Group has managed to stay out of the height and development debate lately consuming island residents and putting politicians in the hot seat.

At an anxiously awaited meeting Thursday, the city council will vote on whether to approve a set of guidelines and restrictions on high-rise development after months of emotional debate.

Anderson and other Falcon Group principals have stayed out of the fray. Their project isn’t affected by the fight, nor is it in a zone where heights might be limited.

In city-conducted surveys, residents have said East Beach, away from neighborhoods, is one of the most suitable places on the island for high-rise development.

But it’s vital that the city offer clear rules that strike a balance, Anderson said.

“The city needs to create a well thought out plan based not on the political winds of the day, but one that balances social, financial and environmental issues,” he said.

+++

High-rise Amenities

Falcon Group, developer of Palisade Palms, offered a sneak peak of the two 27-story, curvilinear condominium towers at 801 East Beach Drive.

Amenities and features include:

• 20-foot water wall;

• Expansive balconies allowing all 288 residents a panoramic view of the Gulf of Mexico and/or Galveston Bay;

• Units range in size from 1,044 square-foot, one-bedroom to 3,000-square feet penthouses;

• Separate adult and children’ pool area;

• Beachcomber’s Kids’ Club with an enclosed jungle gym;

• Terrace level Lanai Lounge, offering 360-degree view of the bay and gulf;

• Morning Lounge and Cafe Bar; offering free coffee 6 a.m. to 10 a.m.;

• A 3,500-square-foot fitness center, including elliptical machines, treadmills and recumbent bicycles;

• Outdoor tennis and sport courts; and

• Bark Park, outdoor dog park.

[NIKKI]

GALVESTON STEWART BEACH BOARDWALK

http://www.eubanks-architects.com/images/galv_special%201%20c.jpg

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http://www.eubanks-architects.com/images/galv_special%201%20j.jpg

[Double L]

Wow, a Galveston boardwalk. We've needed one of those for a while.

[Trae]

Glad Galveston is getting this. Increasing its popularity.

[Wattleigh]

New Condos on the West End...

http://www.laffitesharbor.com/

http://www.chron.com/disp/story.mpl/business/sarnoff/5732193.html

From baseball to realty

Three major league ballplayers are taking a swing at real estate.

Houston Astro Roy Oswalt, retired Astro Woody Williams and retired major leaguer Steve Sparks have invested in an upscale condo development on Galveston's West End.

The developer, Houston-based Stonehenge Real Estate Investment Co., is building the 35-unit project, called Laffite's Harbor at Pirate's Cove.

The bay-front development will be built on more than 8 acres near the Galveston Country Club and will have a full-service marina.

Sixteen units have been reserved with $5,000 deposits apiece, said Stephen Dinjar of Barefoot Properties, who is marketing the project.

In the next two months, he said, the deposits will be converted to 10 percent earnest money contracts.

Preconstruction prices have been set at $400 per square foot.

A 1,900-square-foot, three-bedroom unit will sell for $760,000. Penthouses will go for $1.6 million each.

Groundbreaking is expected this summer.

Many of those who have shown interest in the project are energy executives from Houston, Dinjar said.

Some already have second homes in the area but are seeking lower-maintenance properties.

Dinjar said the slowing housing market isn't affecting high-end Galveston properties.

"We don't see foreclosures or have issues with subprime," he said. "It's not that kind of market."

Galveston architecture firm Michael Gaertner & Associates designed the five-story project in a Spanish Colonial style.

Stonehenge owns additional acreage in the area, including the old Stewart Mansion.

Plans for the property are still unknown.

[Urbannizer]

Diamond Beach Galveston

We are pleased to report construction is moving full steam ahead at Diamond Beach Condominiums. Although we continue to experience some issues relating to Hurricane Ike, specifically as it relates to delivery of materials and supply of power, telephones and internet, the construction in place was relatively undamaged. The Seawall, parts of which were built 100 years ago to protect the Island from just such a storm, performed admirably. Despite the reports you may have seen in the news, Harris County Judge Ed Emmett was quoted saying, “the surge peaked at 11 to 12 feet on the west side. “ According to the U.S. Corps of Engineers, the seawall was built to withstand a 15-foot surge.

The National Hurricane Center put the track of Hurricane Ike directly over Diamond Beach. Despite this direct hit, the work in place did very well. We have attached some photos taken directly after the storm so you can appreciate for yourself how well the building performed. Construction completion will undoubtedly be later than projected due to the storm. However, Diamond Beach does not anticipate that the storm will impact how wonderful the completed building will be.

-Randall Davis

http://i294.photobucket.com/albums/mm99/YahTrickYah57/photo1.jpg

http://www.diamondbeachgalveston.com

[KevinFromTexas]

I was in Galveston earlier this month.

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Flagship Hotel
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http://img206.imageshack.us/img206/9671/p1270732edit.jpg

The Hotel Galvez. It looked to be untouched from the storm.
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[JoninATX]

Any updates for Galveston...