rhino

Phase 1 complete...

http://www.diamondbeachgalveston.com/

It's my understanding that they had their first closings on the lower floors just before Thanksgiving. I went out there to tour the facility a couple of months ago, and I was impressed. It's very nice and better than I expected. The lazy river is particularly cool.

A friend of mine noticed this article about a lawsuit against Randall Davis regarding the soundness of the development. It's an interesting ploy to get out of their contract and attempt to get their earnest money back. I wonder if this case has a chance, and I wonder if others are thinking of doing the same thing?

http://www.setexasrecord.com/news/216513-s...lveston-seawall

Is this what all this hooplas all about?

http://www.newcondosonline.com/texas-condo...4-091907-95419/

Yep, that's it. Their website is http://www.diamondbeachgalveston.com

Does anyone know if there are any other condo towers even under construction in Galveston right now besides DB? I presume nothing new is kicking off since developers can't get financing. Palisade Palms is complete as far as I know.

Does anyone know anything about the construction financing arrangements for Diamond Beach? I know the end of the seaweall in front of the site collapsed and eroded, and the gulf dug a stream/channel through the site.

The channel was filled in by bulldozer several weeks later.

I've been wondering that myself. They have a note on their website that they are continuing, but the hurricane damage in the area had to at least call it into question. I would expect that at least some of the buyers who put down deposits are now having second thoughts.

I did see in the news recently that they are pulling the plug on the Sonoma and Titan condo projects in Houston since they couldn't obtain funding. I think those hadn't started yet whereas as Diamond Beach is already under construction. Even if Diamond Beach is still viable though, one would think they would consider delaying or mothballing the project until the economic picture improves. It just doesn't seem like a good time to buy an expensive condo like this right now.

I stayed the weekend in Galveston last month with some friends and found some good spots you might consider.

We stayed at the Tremont House downtown, and we loved it. It's a really nice place, and it didn't have that big chain feel to it like so many places. We walked across the street to Speculoos for breakfast every morning also.

As for dinner, we had a nice meal at Gaidos on the seawall, but it seemed to be mostly seafood there. We had a good meal at Mario's on the seawall, but I wouldn't call it a fancy restaurant though. It may not be what your after in this case.

There's a really good article in today's wall street journal. The link is below, but you may have to be a subscriber to see it. Also, the online edition has some cool photos.

http://online.wsj.com/article/SB1184365722...ays_us_pursuits

Standing atop the bulwarks protecting this slender island from the Gulf of Mexico's pounding surf and rising tides, it's hard to believe that the place is actually sinking -- by about a quarter-inch a year.

Erosion is compounding the problem, gradually washing away the sandy filament of land hugging Texas's curving coastline and making the island even more vulnerable to nature's wrath. Galveston, of course, is known for the deadliest natural disaster in U.S. history: the 1900 hurricane that killed more than 6,000 here.

Galveston's 10-mile long, 17-foot high seawall protects the east end of the island, where the original city lies, from erosion and storm surge.

You'd think all this would scare people away -- especially after the devastation wrought in New Orleans by Hurricane Katrina. But Galveston is booming. Some locals say all the attention Katrina focused on the Gulf Coast actually helped raise awareness of Galveston as a vacation destination.

In the past few years, anyone searching for beach property couldn't help but notice how much land was still available in Galveston at a fraction of the price of more fashionable East Coast resort towns. Even with some beachfront prices nearly doubling in the past five years, a newly built home in Galveston might cost $300 to $400 a square foot, compared with upward of $1,000 a square foot in the Miami area.

That's making Galveston one of the hottest vacation-home and resort markets in the country. There's $2.4 billion in new commercial and residential construction under way on the island. Investors, retirees and vacationers see building on Galveston as a simple economic gamble. They figure they have good odds of getting plenty of value out of their beach homes before a hurricane washes them away.

Galveston got into my blood when I was growing up along the Gulf Coast in the late 1960s and '70s. My family spent summers at our vacation home on Galveston Bay, further inland from the Gulf. But from time to time my parents would pile all the kids into the 1972 Ford station wagon, fishing poles bristling out the open windows, and we'd drive down to the Galveston surf for a weekend of fishing and camping in the wide-open coastal wilderness.

The 19th century Bishop's Palace survived the 1900 hurricane

When I came here as a kid, civilization dropped off at the west end of the 10-mile-long sea wall. There, the paved Seawall Boulevard that ran atop the concrete rampart terminated in a steep ramp that would let you drive down to the beach. My parents would put down the tailgate and we older kids would ride back there, dragging sticks in the sand, as we bumped along slowly down the beach searching for a place to camp.

Now that old ramp at the end of the sea wall is a stark reminder of how much the island is shrinking. Instead of diving down to the beach, the ramp dives straight into the waves that have encroached far inland.

Throughout its history, Galveston has been a striking testament to human persistence and ingenuity -- and the power of denial. The island has a stomach-churning history of boom and bust. Its rise as a major Southern port city was cut short by the 1900 hurricane.

Protected by a new 17-foot sea wall, Galveston boomed again as the Sin City of the Gulf until Texas Rangers shut down its illegal gambling trade in the late 1950s. After that, eclipsed by the Port of Houston, Galveston limped through the remainder of the 20th century, struggling to pay the bills.

This century has seen Galveston's fortunes rise again. The island is beloved in Texas as part of the state's colorful past and also for its diverse appeal. Tourists flock to the historic districts and miles of public beaches, while fishermen and birders hang out along the jetties, bayous and surf. Out-of-town investors have revitalized the east end of the island, protected by the sea wall, where the original city and docks were built. Now it is a vibrant tourist spot packed with restaurants and shops against a backdrop of cruise ships and barnacle-covered fishing boats lined up along the docks.

The new Pointe West development

In nearby historic neighborhoods, new residents are resurrecting Victorian architecture. The Galveston port now hosts one of the nation's top-five cruise markets. The island also has new attractions, including a Schlitterbahn Waterpark and an expanded Moody Gardens.

Several new high-end resorts have opened in the past few years, including Pointe West, a complex of vacation homes, trails, lagoons and a beach club on the western tip of the island. On the opposite end, Palisade Palms, a pair of 28-story beachfront condominium towers, is under construction.

The latest growth spurt is a welcome renaissance, but controversial among longtime residents, especially among BOIs -- local jargon for those Born On the Island. Some blue-collar workers now can't afford to live on the island because of rising rents and property taxes.

The latest battle concerns a proposed 1,000-acre west-end development that would create almost 4,000 new homes along with two hotels and a marina. The west end of the island has changed the most -- the land of "the stilt people," according to Victor Lang, a retired Washington lobbyist who performs a one-man show on Galveston history. There's no sea wall on the western two-thirds of the island, so buildings must be raised high on wooden piers, or stilts, to protect them from rising water.

There's still lots of vacant land but it's rapidly filling in. That worries the naturalists, who see the pristine coastal prairies, wetlands and bird habitats disappearing beneath the new construction.

The historic Strand

Opponents also wonder how much more the environmentally sensitive island can stand before it gets washed away. Exhibit A is a study by University of Texas geologist James Gibeaut, who was recently commissioned by the city to map out the areas most vulnerable to erosion, storm surges and rising sea levels. Barrier islands like Galveston are nature's way of protecting sensitive coastlines from erosion. They build up over thousands of years, and then erode, shift, and sometimes disappear over subsequent centuries.

When Mr. Gibeaut looks at Galveston, he sees an island in transition. "It's getting skinnier," he says. The land is two feet lower than it was 100 years ago, and erosion has been eating away at the unprotected west end.

But that doesn't seem to be deterring people. I understand. My husband and I are thinking of building our own summer home on the Texas coast. My children will never experience Galveston the way it was, but they can still see some of its history, explore the sand dunes and chase fiddler crabs on the beach. To us, some things are worth the risk.

I agree with The Niche that this one is probably dead. I had Drake Development's webpage for this condo bookmarked, and the link has since been deactivated. Also, I called them a few months to get pricing, and they said they were no longer taking reservations. Very sketchy response, which I interpreted as they were thinking of pulling the plug. This isn't necessarily a bad thing though. I feel too many projects were proposed last year, and it's good if some fall out to add some more supply/demand balance to the market.

Does anyone know if Galveston has ever seriously considered just bringing in sand to build up the beaches? I know other coastal communities do that. I'm sure it would be expensive, but I have no idea how expensive. However, all of the pricey construction should be raising the property tax revenue of Galveston - in theory. Perhaps they could use some of the windfall to invest in the beaches. That way they could plow up the seaweed to beautify the beaches since the beach would be replenished with imported sand.

You know, my unscientific prediction was that this one would be cancelled. I check condo for sale listings every week just to see what's out there, and a large portion of these are still listed week after week. It doesn't appear that their presales have done well. It didn't look compelling to me in relation to other options out there.

I think the Drake East Beach development is dead too. I called them a few months ago to get current prices, and they said they weren't taking any more deposits. Very evasive about it.

Also, I saw an ad a few weeks ago in the WSJ I believe, and some Pointe West condos were basically being given away. About $100K to $200K less than the retail price.

In my opinion, too many condo towers were announced last year, and it's actually better for the market if a few of them fall by the wayside. I'd rather not see the place get too overbuilt. That just hurts the people in the more viable condo developments. It's all about supply and demand. Galveston is really becoming a hot spot, but I prefer to see orderly, rational development myself.

I agree with Lockmat that it would essentially be lots of stores with lights, and probably stores you can find elsewhere in Houston. However, this sure would be fun. I've really enjoyed my visits to places like Universal Citywalk and Downtown Disney. I think it's the glitz and complete experience they give you that make these places so entertaining. I bet this would draw a lot of people.

I haven't personally been to Kemah Boardwalk, but this sounds similar. Is that a valid comparison?

Boris - Great Pics!! It looks like Galveston was really hopping.

I'm not sure which resort is doing the 'golden sand', but Diamond Beach at the West end of the sea wall is planning to import white sand for their beach. I'm signed up to buy one of their condos, and a letter last September stated such regarding the sand. Perhaps some other new resorts will do the same, and they can keep the beach of front of their properties cleaned up.

I understand you can protest your property taxes. How is this done and what reasons do you use?

A local realtor suggested I sell my homes on the west end beachside at 25% lower than what I paid for them in early 2006. Is this a valid reason? It seems property values have gone down so it would reason that the taxes should be lower too.

aslowdodge - the most interesting part of your post to me was that the realtor said you should sell for '25% less' that what you paid a year ago. that's a big drop!! Galveston real estate appears to have topped out, but I didn't think it was declining precipitously. maybe I'm wrong though.

I agree with aslowdodge that tourism has to stay part of the equation. I'd even like to see them play up the convention business more, although I realize they have to do some convincing that Hobby airport isn't that far of a drive. Also, one would think that Galveston's Mardi Gras would be more compelling in light of the continued hurricane issues in New Orleans, but it sounds like the Galveston Mardi Gras has been struggling the past few years. I've never been to it though and only know what I read in the paper.

One thing Galveston should do is make better use of the port. I've been following the sad saga of the Galveston port and its relationship with the Houston port. Considering how busy the Houston port is, it only makes sense that there should be opportunity for Galveston's port to grow as a secondary Gulf coast port. From what I've seen, longshoremen make really good money, and there are related jobs in warehousing, freight transfer, etc. I think that's a logical industry for Galveston.

Personally, I ended up going with Diamond Beach, the new Randall Davis development at 103rd and Seawall. My criteria were a new development (I don't want a really old condo) and something with some character (in my opinion, there are several new condos going up that all look the same). I also wanted a condo instead of a house to avoid dealing with landscaping and other chores.

Diamond Beach is certainly not cheap, but I liked them the best. I was also intrigued by the fact it's partially protected by the seawall but with a small amount of beach since it's at the very Western end of the seawall.

However, one drawback for you would be that they haven't started construction yet, if you are wanting something now. From what they've told me, I think it's two years until they are complete.

Someone above mentioned a preference for being close to town. DB is pretty far away from town, which is fine with me. However, there are some really cool places closer to town though. There are some nice lofts from what I've seen. I also almost signed up for Emerald by the Sea two years ago but changed my mind. I've been kicking myself ever since since the market has appreciated so much since then.

Good luck in your search!!

I'm not that familiar with The Galvestonian, but I've done a lot of research on new construction condos recently because I just signed up to buy one. The nicer ones are typically in the range of $350 to $450 per square foot, although more cookie cutter new developments are around $300/sqft. The two you mention are $488 and $390 per square foot. Assuming this is a really nice place, then it's probably a fair price (but not a steal). I've noticed that pricing also is higher if the condo actually has a gulf view and also more for higher floors.

It sounds like this project is getting ready to kick off. They are starting the purchase contract process. Does anyone have any impressions on Diamond Beach? Is it still a good investment, in relation to the other new condos going up in Galveston? Thanks.