This study is about the 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.
At the real estate peak in 2007, over a dozen high-end projects were under way on the Texas coast transforming the skyline and promising better lifestyles. Some of the projects completely failed, most will redeem their value sometime in the future, but only two thrived and are roaring out of the recession.
The report shows how it was a combination of negative factors that took the Texas coast market by storm, while
Texas overall had only minor effects from the recession.
The factors included:
1. Hurricanes Dolly and Ike in 2008
2. The Subprime mortgage crisis in 2008
3. The National real estate value bubble burst in 2009
4. The BP Deepwater Horizon oil spill in 2010
5. The News about the drug war on the U.S. Mexico border since 2006
The report also shows the criteria used to determine which are the best new projects on the Texas coast.
1. The properties being built, as well as the location, have to be rare and unique.
2. The owners and developers of the projects must be reputable and solidly financed.
3. 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.
4. A good marketing plan and sales operation team must be in place to ensure the project's success.
5. The project must not have major erosion and insurance issues.
6. The project should have energy efficient and storm resistant features.
7. The project design and price range should fit with the buyer profile for the area, and its surrounding properties.
8. The project and personnel must be in good standing with the local community.
9. 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 developer projects that thrived during the recession are:
1. Cinnamon Shore, Port Aransas - Seaoats Group (CinnamonShore.com)
2. Los Corales, South Padre Island, Paez Development (PaezDevelopment.com)
"The attributes that they demonstrated can be used as a guide to determine the value of any project and also as a guide for other developers to follow." - said Michael Stuart, Editor TexasGulfCoastOnline.com/TexasBeachHomes.com
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
Location price mismatch
Problem with Market Fundamentals
Highly leveraged project
Coastal Golf courses
See the report at: texasbeachhomes.com/what-thrived-and-dived-during-the-texas-coast-recession
Michael Stuart, Editor TexasGulfCoastOnline.com/TexasBeachHomes.com