South Padre Island's Largest Transaction Makes Real Estate History

Source: PRLog - Free Press Release Distribution (http://www.prlog.org)
By Eva Geertz
Dated: 8/11/2007

South Padre Island got the attention of national real estate developers when the Zol property went to the auction block. South Padre Island, TX – Aug 9, 2007.

On Tuesday, July 24, 2007, 730 acres of South Padre Island went up for auction in Corpus Christi, Texas. The property was owned by Zol Development Group of Florida. They had plans for a master planned community on SPI, but after financial difficulties in Florida and other parts of the country, this land and other holdings were made available for bid in bankruptcy court. The property lies between the Convention Center and Beach Access 6, and it is within the jurisdiction of Cameron County. It enjoys over 7,785 feet of beach and bay frontage, and spans the entire width of the island. It is on the road and is relatively close to utilities. County zoning of this area has few restrictions and the owners will be able to choose whether they wish to be a part of South Padre Island Township or establish their own municipality.

There was no shortage of bidders, with representatives from all over the country, and there were some international buyers represented as well. According to the San Antonio Express News, bidding opened at $38.3 million dollars and was quickly raised to the accepted amount of $81.5 million dollars. The winning bidder, Merv McDonald of Florida’s Lancore Realty, will be allowed time to examine the property before the closing date. Other bids of similar amounts are held pending McDonald’s action.

Vast amounts of coastal acreage are incredibly rare along the U.S. coastline, and this auction garnered great attention off the island. For many living here it was a little known event.
One can only anticipate what might happen next.

Development could take place with relative speed. This development could spur momentum for a timeline on the second causeway. This development may add significantly to the South Padre Township tax base, or cut off annexation from other north island development sites. Other possibilities are that it may be held as an investment; sold again; parceled out; or lie dormant, as it has for so long.

It is far too soon to tell, but one thing is certain. South Padre Island got the attention of national real estate developers when the Zol property went to the auction block. With the positive projections of growth for the Rio Grande Valley, it is not likely to be forgotten anytime soon.