PORT ARANSAS, TX-Two Sunbelt developers have joined forces to acquire 1,226 acres of undeveloped property on the Texas Gulf Coast. The build-out plan has an all-in development cost of $3 billion and will take 20 years to complete.
ZOL Development of Houston has picked up 672 acres on South Padre Island for the Renace and 554 acres in Port Aransas and Mustang Island for the Deseo. The development partnership is made up of Fred Zohouri of Atlanta and Jose Lora, a Houston-based real estate executive making his first investment in Texas. ZOL also is working a development in Florida.
ZOL Development of Houston will open a sales center in the near term in the area although both mixed-use communities, with high-density retail components, are still in the planning phases. Morris Architects of Houston is crafting the designs.
Connie Dando, marketing director for ZOL Development, says Deseo's first phase of residential development will break ground this year while the South Padre-Mustang Island development is still in the initial stages. "We're already starting on preliminaries on South Padre," she adds. The amount of retail space and mix of the residential density have not yet been determined for either site.
Dando tells GlobeSt.com that the areas appealed to the developers because they offered strong opportunities for development. "They're probably among the largest parcels of undeveloped land on the Texas Gulf Coast and the Gulf of Mexico," she adds, estimating the projects could yield a combined $9 billion at sell-out. Though it appears that its plate is full at this point, she says that, for the right project, ZOL will consider adding to the pipeline.
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