South Padre Island, Texas 
Specializing in CONDOMINIUM Sales since 1995 ... Property Management... Mortgage Brokerage... call us today toll free to find your place in the sun.. by the shore...in South Padre Island.
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SOUTH PADRE REAL ESTATE SALES AND INFORMATION

south padre island real estate-then and now
The 19th century concept of Padre Island real estate centered on ranching, but that concept has changed dramatically in the 20th and 21st centuries. Colonel Sam Robertson was the first to envision the Island as a resort in 1925. His dreams, however, evaporated like money in the stock market during the Depression. He was followed in ambition by Kansas City investors, led by the oilman Albert R. Jones, who saw Padre Island as the best prospect for development of a resort in the country. With the advent of World War II, Padre Island, instead, became the location for bombing practice by the U.S. Navy.

The Island was not to be forgotten. Another, fortunately, shared that long ago vision and John L. Tompkins stepped forward in an attempt to make the dream of a resort playground a reality. Frustrated by his inability to get anything accomplished on the northern end of Padre Island, he turned his attention to the southern tip, to what would become known as South Padre Island. By 1950 he had acquired five miles of beachfront property on South Padre; it stretched from the present-day Radisson Hotel to just north of Andy Bowie Park.

With the completion of the first Queen Isabella Causeway in 1954, real tourism began. Tompkins commissioned a conceptual drawing translating his vision onto paper. It is astonishingly close to how South Padre looks today. With his vision on paper and lines drawn in the sand, Tompkins began to sell his lots - $1,250 for a beachfront lot and $250 for an interior residential lot.

In 1964 the Port Mansfield Gulf Channel was completed and Padre Island was divided in two. By 1969 a few hotels and condominiums had been built on South Padre along with beach cottages and the occasional luxurious home. In 1974 a new Queen Isabella Causeway was erected to carry the ever-increasing volume of traffic between Port Isabel and South Padre.

By the mid-1980s South Padre was a rapidly growing Gulf Coast resort - there were approximately 4,500 condominium units and hotel rooms and approximately 650 homes. By the end of 1989, however, South Padre Island was reeling from the effects of a peso devaluation in Mexico, the crash of the Texas oil industry, and the national savings and loan crisis. Even the economy of the Rio Grande Valley was hit hard by a devastating freeze impacting the then predominate agricultural industry. The development and sale of real estate stopped and even went backward.

South Padre Island in the late 1990s was once again on the move - building cranes became part of the skyline, new families moved in, and more visitors discovered our Island. By 2004 there were approximately 4,800 condominium units, approximately 2,500 hotel/motel rooms, and approximately 1,130 homes.

real estate as an investment
Many who visit are drawn to the idea of owning a bit of paradise, either as a second home or as an investment (or combination of the two). Most property owners on the Island started as renters on vacation. They began to ask questions. Could they become property owners, enjoy it when they want to and be able to earn some rental income, take advantage of tax benefits, accrue equity, and see the value of the property increase?

A recent study by the National Association of Realtors stated approximately six percent (6%) of all homes sold each year are considered second homes. Seventy-six percent (76%) of those buyers want to be on or near the water. For South Padre Island property owners, recreational use is often the main reason for their purchase. The investment value is an added plus.

In considering a purchase of resort property, an investor weighs the merits of types, sizes, and locations of properties on the market, decides if the property will be in a rental pool, considers the possibility to transfer tax deferred equity into another property via a 1031 tax exchange, and speculates on the use of an IRA to purchase property.

For investment purposes, the beach front is the basic draw for rental income possibilities with beach side properties following in preference. The typical renter wants to walk the white sandy beach, see the blue/green waters of the Gulf, and hear the sounds of the surf.

The Laguna Madre side offers a slower and quieter pace. Fishing, wind surfing, and birding enthusiasts often point to the bay front or bay side as their preference. They enjoy and take advantage of the many gifts offered by the calm water of our Laguna Madre.

Property management companies located on the Island offer varied services to the owner/investor regarding rental properties - fee for services, variety of services offered, hours of operation, and World Wide Web presence. After comparing, an owner/investor chooses the service to best fit his/her needs.

the future
The land within the present boundaries of the Town of South Padre Island is limited and developers are scrambling to take advantage of the few remaining tracts. A number of new projects have been announced and others are on the drawing board.

Even more exciting and momentous, however, is the prospect of the land to the north of the Town of South Padre Island. The State of Texas has determined that there are approximately 26 miles of coastline that are able to be developed; the rest of the coastline has either been developed or has been set aside to hold in safekeeping for the benefit of all for generations to come. Of that 26 miles, South Padre Island has approximately 6 miles.

The continuing evolvement of South Padre Island no longer lies beyond our vision. A new generation of dreamers and doers are providing the shaping impulse to continue the long ago dreams of Col. Robertson and John Tompkins for our Gulf Coast isle in the sun.

Chacon Realty, L.L.C.

  E-mail us at chaconrealtyllc@aol.com with questions or further information.
Copyright © 2001 CHACON REALTY, L.L.C./ Texas Real Estate Broker Lic. #0433318/ Texas Mortgage Broker Lic. #45186/ Texas Registered Builder#2874
Last modified: January 16, 2008