Village Walk Casitas Now Available...

Great Port Aransas Investment

Six, three-bedroom, two and one half bath, fully-furnished rental units to be built at Village Walk Condominiums, Port Aransas, Texas. These units will be located on six adjoining lots (Units 1-6), and have been specially designed to combine optimal rental income potential, low maintenance, and long-term investment value. Each unit will contain 1,062 square feet of A/C space.

Village Walk Condominiums is one of the premier single-family residential developments in Port Aransas, with its in-town location less than a two-minute drive to the beach, and close proximity to all of the shopping and restaurants in town. The first homes in Phase I (56 Units) of Village Walk were completed in late Summer of 2007, and by the end of 2008 a total of 40 Units had been built and sold. Based on this strong market demand it was decided to proceed with the construction of Phase II (42 Units), which was completed in January 2009. We all know what happened shortly thereafter in the financial markets, and while this economic slowdown has has adramatic negative effect on the Nation in general, Village Walk has managed to sell another 9 Units since the beginning of 2009. This continued success has given us the confidence to proceed with the development of the Casitas today.

The concept for the Casitas at Village Walk was actually born during the initial planning stages of the overall development. These six smaller lots were programmed to be built as smaller versions of the larger Units typical of Village Walk houses in order to provide a more affordable alternative for groups just too large to rent a single house in Village Walk. The extra guests can rent one of the Casitas for less than a second larger Unit, and still be “part of the party”. After consulting with the owner of one of the Island’s leading rental agencies, we were encouraged that our proposed design (by Nick Lorette - Port Aransas Coastal Homes) would be very well received by the rental market.

In general, the rental of Units at Village Walk for the past two years has be nothing short of phenomenal. The dozen or so Units that are available for rent have stayed full for virtually the entire summer season, and at premium rates of $440 to $550 per night. With the Casitas filling in the market for a Unit that can be rented for $350 or less per night, a much larger market will be able to enjoy Village Walk.

The Casitas land is presently owned by Village Walk Development Corp., the developer of Village Walk, and the design of the Casitas was done by Nick Lorette, a highly respected Port Aransas builder, who is responsible for constructing most of the Units in Village Walk today. We estimate that the Casitas can be completed in eight months, which means that they can participate enjoy all of next year’s rental market if this transaction can be closed by October 1, 2010.

Available For:$1,368,000 or $228,000 each.
$60,000 Lot
$168,000 Construction and Furnishings

www.gotexascoast.com

www.vacationinporta.com

Half-Finished Condo Tower Bankrupt...

The development partnership behind the La Vista on Lavaca condos, also known as The Fondren Building, has filed for bankruptcy and wants to sell what’s left of the project it’s been unable to finish for a decade.

LaVista Partner LP has tried to sell the project for $10.3 million since at least May, and it’s still being marketed.

The nine-story building was supposed to be a spot where movers and shakers could be near the Texas Capitol, smoke cigars and make deals. Instead, it’s a concrete skeleton on the corner of Lavaca and 17th streets, standing like a monument to the recession and reminiscent of the ill-fated Intel shell downtown.

Project mastermind Mary Guerrero-McDonald of Guerreo-McDonald and Associates couldn’t be reached for comment. The phone number listed on her firm’s website is disconnected.
The building skeleton is designed for a restaurant, rooftop entertainment area, luxury residential condos and office condos, plus about 100 underground parking spaces, according to marketing material.

LaVista partnership manager Mac Pike said the Chapter 11 bankruptcy filing is meant to “flush out the real buyers” for the 89,800-square-foot shell.

Pike, a partner in the Sutton Co., blamed the project’s failure on circumstances in the market and within the partnership, but declined to elaborate. He said he does not know Guerrero-McDonald’s status. Pike said the project’s failure has nothing to do with its location or the concept, and he is excited to talk to anyone with an offer.

“We have always been transparent. It is a very good project. We know it will be successful,” he said. “We have an extension on the site plan and also on the construction. We are in good shape.”
The initial bankruptcy filing, which is incomplete, estimates there are more than 50 creditors. It states the partnership has less than $10 million in estimated assets against more than $10 million in estimated liabilities.

More than $4.1 million in claims from five of the top 20 creditors are disputed, according to court records. About $3.7 million is claimed by Dallas-based Precept Builders Inc. and an affiliate.
The Web address and phone number for Precept were not working on July 13. A former executive could not be reached.

Guerrero-McDonald, one of the original partners in the project, sold portions of the project to Pike, Austin real estate developer Jimmy Nassour and a third undisclosed partner, she said in 2008.

Guerrero-McDonald had previously partnered with Gene Fondren, a lobbyist for the Texas Automobile Association who suffered a stroke a few years ago.
The Fondren family is still owed $200,000, according to court records. The family is not descendants of Walter Fondren Sr., founder of Humble Oil, which merged with John Rockefeller’s Standard Oil Co. and later became Exxon Corp, the family lawyer said.
Guerrero-McDonald is still a committee chairwoman at the Austin Building Owners and Managers Association, but the committee co-chair and BOMA’s executive vice president said they do not have a contact number and did not know her firm’s status.

In 2000, she told the Austin Business Journal she planned to build the condos for $15 million and sell units for $252,000 to $637,500. In mid-2006, the project had not started, but Guerrero-McDonald said the tower would break ground that year; meanwhile, the project cost grew to $25 million.

The project had also received a 10-year tax exemption through the city’s Smart Growth program, she said at the time.

After two more years of inaction, the project’s cost estimate rose to $30 million and Guerrero-McDonald told the Austin Business Journal the project was moving forward with a new investment team that included Pike and Nassour. Nassour was traveling and could not be reached.

After completing the concrete skeleton, developers decided to cease construction in September, Pike said. A website lavistaonlavaca.com still boasts of high living. A 1,600-square-foot condo is listed for more than $1.1 million, and prices go up to $2 million.

The original architect for the building, Ponciano Morales, of Morales and Associates said Pike told him Guerrero-McDonald lost control of the project in 2008, although she was still a partner.
“Somewhere along the line the funding dried up [and] everybody stopped us from working,” said Morales, who has a $32,500 claim for work on the project, which the partnership is disputing.


Read more: Half-finished downtown Austin condo tower bankrupt - Austin Business Journal