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Kirana Highrise Breaks New Ground on South Padre Island
1219 Views ::
8 Comments ::  :: South Padre Island, Investment, Economy |
Kirana Highrise Breaks New Ground on South Padre Island
The ground breaking for the new pyramid style high-rise promises to be a bi-national landmark for the USA and Mexico
 Developer Bernardo Flores Chapa, local realtor Alice Donahue and local architect Sam Listi It's rare to see new construction these days, let alone a project the magnitude of the Kirana high-rise in the heart of South Padre Island. The project will have a big impact on the community and the skyline at nearly 40 stories.
The groundbreaking ceremony was held 16 December 2010 on the property grounds with the Island's local government, realtors, developers, and several future owners in attendance.
Some might question beginning such a large development at the bottom of an international recession, but local realtor Alice Donahue mentioned how the project has strong customer interest from Mexico's elite looking for a safe haven investment (with paradise side benefits), and how she already has several sales from US residents who want the very best, along with a large and growing list of interested clients.
Mexican "national" development projects on South Padre Island have always perfomed well and have appreciated in value more so than other projects, due to the extra care and long term ownership pride of the residents. In most cases, short term rentals are not permitted and the projects are completely funded, absent many of the pressures that come with leveraged capital from US banks.
While the Island's sales volume has slowed during the recession, the median price has held steady. See South Padre sales charts and analysis online at alicedonahue.com/SalesVisit http://www.alicedonahue.com/Kirana for more information on this spectacular project. |
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Carla Hill Realty Times @
Sunday, December 19, 2010 7:52 AM |
Here are some pros and cons of condo living:
Pro
1. Affordability: Are you looking to buy in a specific neighborhood? A condo allows many buyers to live in a desired location, even if they can't afford a single family home.
2. Amenities: Many condominiums come with access to such things as fitness centers, pools, and club houses.
3. Low Maintenance: While you are still responsible for the inside upkeep, outdoor and community features such as the roof, foundation, sidewalks, pool, and yard are covered by the association. This means no mowing the yard in 100 degree heat!
4. Reserve Fund: The condo association collects funds and keeps them in reserve for larger repairs and upgrades needed down the road. If your association keeps accurate surveys and books, this means there should be no surprise expenses.
5. Safety: Many condos offer gated parking, security guards, and even doormen.
Con
1. No Storage: You may find the rare condo that offers access to storage lockers, but condo living generally means no storage. If you have items that will need stored, be sure to include a storage facility rental fee into your budget.
2. Lack of Privacy: You will most likely have neighbors upstairs or down, or at the very least right next door. Some people love the sense of community this creates, though!
3. Monthly Association Fees: Nearly all condo units require you pay a monthly fee that pays for upkeep around the community. This means even if you own your condo free and clear, you are still responsible for monthly fees.
4. Rules: Who likes to follow the rules?! But kidding aside, many condos have strict rules about guests, noise, decor, and even subletting.
5. No yard: While some homeowners love the idea of no yardwork, others enjoy planting and growing. Most condos have very little outside space, apart from small patios.
Be sure to take these elements into consideration when deciding whether a condo is the home choice for you. |
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Kirana Watcher @
Sunday, December 19, 2010 12:41 PM |
Despite the comments above, I wonder if funding was really the main cause of this project's delay. Maybe they had to redesign the foundation after the Ocean Towers incident? Or maybe they just couldn't line up the financing as quickly as they wanted?
Clearly Flores Chapa is WAY behind schedule on the Kirana project. Back in January he was claiming that Kirana was already 70% presold, yet at the time he says he was still seeking financial backing for the project both in Mexico and the U.S.
http://www.bizjournals.com/sanantonio/stories/2010/01/25/focus1.html
That doesn't sound logical to me. Why would he still be seeking funding if he had already pre-sold 70% of the project? Did one of his financial backers pull the rug out from underneath him, or tighten up the terms as the economy sunk? Hard to say. We'll probably never know the whole story.
In any case, Mr. Flores Chapa's admitted problems getting this project funded sure contradicts the line above: "In most cases ... projects are completely funded, absent many of the pressures that come with leveraged capital from US banks."
I think the original estimate was 2 - 3 years to get this project built, after ground breaking. Does the current environment in which even the best developers are having trouble getting financing suggest that it may take longer to get this specific project to completion? Hard to say. After they sink some serious money into the construction there will be increased motivation to get those lucky new condo owners to the closing table. In other words, after this project starts going up, the odds increase they can get it to completion. This past week's groundbreaking was great to see, but not very meaningful by itself. I want to see concrete pouring, and steel beams taking shape.
Nobody really knows what unforeseen obstacles Mr. Flores Chapa will face trying to erect the tallest building on South Padre. Not only is it a serious financial challenge, but it is also a major engineering challenge. On the other hand the biggest impact to the future construction schedule may be something completely unforeseen - like Mother Nature.
To me it looks like Mr. Flores Chapa has been having financing problems like every other developer, and I won't give him any extra credit for being Mexican. What does however intrigue me is how these Mexican developers win the favor of local real estate agents. That really has me curious. How does he do it, even after a major project stall like this? The guy clearly knows what he is doing, and is successfully navigating though some very rough problems. That alone should earn him some respect.
That linked article above also mentions that Flores Chapa also has ties to the developer of the Lighthouse project. That's another one of those big developments for rich owners that are seldom there. To me it looks like the project functions more like a big piggy bank for Mexicans looking to diversify their investments, and enjoy a little paradise along the way. Walk by The Lighthouse on most days, and it looks nearly vacant. It sounds like Kirana will be similar in concept. I guess as long as the owners are paying property taxes, I don't have a problem with it. I'm especially thankful that the new Kirana project will bring even more tax money, jobs, and real estate commissions to the island. We can never get enough of that!
I wish the best of luck to everybody involved in this new Kirana project, happy holidays, and a prosperous new year. |
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interested buyer @
Monday, December 20, 2010 11:58 AM | |
Are those hard hats and shovels just for show, or is this groundbreaking for real? What's the new construction schedule?
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Alice @
Thursday, December 23, 2010 1:39 PM | |
Kirana will definitely be breaking ground by the first week of January. As I am writing this they are grading the site and yes those hard hats and shovels are real!! I will be posting more information as I receive it. Merry Christmas and Happy New Years Everyone. Thanks for visiting our site! We appreciate your input and look forward to adding our new site after the first of the year. |
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Raul Banker @
Sunday, December 26, 2010 10:51 AM |
First, Happy Holidays to Everybody, and may 2011 bring us all some more SPI business!
At first sight it doesn't seem logical that with hundreds of island properties for sale that we would be building a new beachfront condo complex. If there was overwhelming demand for high end beach condos, then Sapphire would have sold out a long time ago, right? (Unless there is something inherently wrong with Sappire?)
A few things make this new Kirana complex unique. First are the prices, with many units selling for more than $1M. Then there are the buyers, most of whom are Mexicans. Also consider the Mexican developer, and the sales office in Monterrey. Although I'm sure Alice would be most happy to sell any gringo one of these beautiful new condos, the whole project seems to be built by Mexicans, primarily for Mexicans. I guess you can't complain about that. No matter where the money comes from, all those new pesos will greatly help our beautiful little island. New tax revenue would certainly help pay off the bonds for the new fire station.
So how the heck are these new luxury condos selling when there are literally hundreds of other condos for sale on the island, some at fire-sale prices? This whole gig is starting to look like a clever method for rich Mexicans to move their money out of Mexico, as many have been doing lately in the face of the drug war. Could it be that the recent decision to break ground on Kirana has more to do with rich Mexicans needing to move their money out of Mexico, more than some kind of overall recovery in the island's real estate market? Now wouldn't that be ironic if the same drug war in Mexico that has been killing the local economy for the past couple years may actually now be helping the high end condo market! Perhaps the magic trick to selling island property is to find new and unique methods of helping Mexicans get their pesos out of Mexico, and less to do with some great new condo design.
Good luck to all buyers, sellers, and their agents in the coming year! Figure a safe way for those rich Mexicans to get their money out of Mexico, and you could make some big $$$ in the coming year. |
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Bobby Jean @
Monday, December 27, 2010 4:57 AM | |
Look at the last picture. A few years back there was supposed to be another Isola Bella tower in that empty lot. That massive scaffolding pictured on the south side of the existing tower is a stark reminder of how badly some of these new luxury beachfront complexes have turned out, despite the original marketing literature proclaiming all the wonderful amenities. Let us pray that the Kirana developer has learned from all these past disasters. Kirana has the potential to be the island's best condo complex ever, if the developer doesn't cut corners. In all truthfulness, none of us can really assess the construction quality for at least five years or so, until the project is completed and survived a couple serious storms. |
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Jeff Sarkowski @
Saturday, February 05, 2011 10:54 PM |
The developer could lose his butt on this project long before he ever gets to the closing table. Commodity prices, the stuff you build high rises with, are SOARING. For example, during the past week the price of raw copper, the core of home wiring, has now passed $10,000 a ton, an all time record. If they have to switch to aluminum wiring, it will also raise insurance rates for condo owners.
On the bright side, if you're already a SPI property owner, you're protected against inflation. Another thing to consider is that there is a limited amount of SPI beachfront left to build any more condos. After we get through the current inventory overhang, it will be a seller's market again. Tight supply = higher prices
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Beach Investor @
Friday, June 03, 2011 10:58 AM |
What happened to the Kirana project? Six months after the official "ground breaking",it looks like nothing has happened. I would have expected at least 10 stories to have risen by now, but the whole thing still looks like freshly plowed farm land. Has the project been cancelled? It always seemed to me that planned building was WAY too big for that little lot. It's also hard to trust a developer who says they are going to build something, takes deposits from potential buyers, and then nothing happens. Anybody know what's REALLY going on here? The last excuse I heard they were redesigning it to meet the latest building codes, but now that whole story is also starting to look like hogwash. To be a trustworthy developer, you have to do what you're going to do, and keep the project on schedule. Putting together a fake ground breaking ceremony is almost criminal.
My best guess is the financial backing has dried up, but I really have no idea. The problems in Mexico aren't helping, and that's a safe be considering most condo buyers are Mexican. Plus, the whole island is littered with "For Sale" signs, so it must be hard to build something new in an environment like that.
But I'm still waiting to hear the REAL story.... |
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