Jeff Hollinden, managing director with Holliday Fenoglio Fowler LP's Houston office, says that, given the interest in the site, there should be a lively bidding war for the land, which is on Texas 100, three miles north of the island's business center. "We've gotten a lot of inquiries from traditional developers, land investors, private investors and opportunity funds," he says.
Hollinden, along with HFF managing director Robert Williamson and associate director Barbara Guffey are representing the seller, Michael B. Schmidt, Chapter 7 Bankruptcy Trustee for the Zohouri Group South Padre LP. The former owner was Atlanta, GA-based developer Fred Zohouri, who in conjunction with Houston real estate executive Jose Lora, had acquired the land in May 2006. The developers planned to build high-end, mixed-use developments on the site, as well as on other sites in Texas and Florida, but filed for Chapter 11 bankruptcy protection in late 2006.
Hollinden tells GlobeSt.com that the developers' economic woes shouldn't impact the property's potential for future uses and development. "There wasn't a problem with the land. The developer went bankrupt on a corporate level because of cash-flow difficulties," Hollinden comments. "He simply didn't have enough cash with all the investments he had around the country."
The land has approximately 7,785 feet of beachfront footage along the Gulf of Mexico and the Laguna Madre Bay, and encompasses the entire width of the island. The site's buyer will have the ability to establish zoning and master planning upon acquisition.
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