$70M of Texas Gulf Coast Property up for Auction

Two months after Hurricane Ike wreaked havoc along Texas’s Gulf Coast, the Newport Master Planned Community in Port Aransas, Texas, plans to put three tracts of land up for auction Nov. 11. The three tracts are part of the 2,118-acre Newport Master Planned Community. The parcels to be sold are situated on the north and south side of Highway 361 on Mustang Island. The sites are 90-acres, 165-acres and 326-acres. All three tracts will be sold separately via an on-site, live auction conducted by Dallas-based Hudson & Marshall at the clubhouse of the Newport Dunes Golf Club. CB Richard Ellis Inc. is directing the sale.The Newport Dunes Beach and Golf resort and community is already under Phase I of its construction and recently opened the Newport Dunes Golf Club, a signature Arnold Palmer course. The Newport development is already underway, so CBRE representatives believe the auction will draw a number of investors. Staging the auction near the available tracts is designed to make the sale more desirable, too. The 90-acre site is located in the Newport Beach and Golf Village South and has 3,000 feet of frontage on the Gulf of Mexico as well as front on holes seven through nine of the golf course. The 2008 appraised value of the site is $30 million. The minimum bid on the tract will be $15 million, according to a pamphlet marketing the site. The remaining two tracts are located in the Newport Landing and have frontage on Corpus Christi Bay, State Highway 361 and holes one through three at the golf course. Combined, the 2008 appraised value of the two tracts is $40 million. The reserve prices for the tracts are $5 million and $10 million respectively. Mustang Island is an 18-mile barrier island divided by the cities of Port Aransas to the north and Corpus Christi to the south. Bidding is open to the public although only registered bidders may bid. A due diligence package is available prior to the auction through the Houston office of CBRE. Pierce Owens, CBRE vice president of investment properties & portfolio services, is leading the team on the sale. “Our potential buyer profile is an opportunistic, long-term investor/developer interested in owning beach front and/or bay front property at a significant discount,” Owens told CPN. “This portion of the Gulf Coast was not impacted by Hurricane Ike and the large 10- to 20-foot high sand dunes near the subject properties and on Mustang Island, in general, provide a measure of protection.”