Third Tower Planned For Palisade Palms
Galveston County Daily News, April 23, 2008
by Laura Elder
GALVESTON — Development firm Falcon Group says it plans
to add a twin-peaked, 300-unit tower to a project that already
boasts the island’s tallest building — the $170
million East Beach residential high-rise Palisade Palms.
Word came as the developer said it would begin next
month closing sales on units in the two existing 27-story towers
on East Beach.
The addition will be designed as a single tower through
the 20th floor, then split into two sections to its full height
of about 27 stories.
Falcon Group’s plan to build a third tower comes
as condominium developers across the nation, particularly in
Florida, take huge financial hits in glutted markets where prices
are plummeting.
But Richard G. Anderson, vice president of development
for Falcon Group, said there was strong demand at Palisade Palms
and a healthy thirst for beach-front properties along the Texas
Coast.
Falcon Group reports that buyers have plunked down
earnest money contracts on 92 percent of the 288-unit Palisade
Palms, where prices range from $400,000 to $1.6 million. Sales
are measured by actual closings, a process that will begin in
early May, Anderson said.
About 20 percent of the condo buyers will make Palisade
Palms their primary home, he said. That amount could increase
as those who bought units as second homes retire and move to
the island, which would boost the city’s economy, he said.
Falcon Group sought to discourage flippers —
speculators buying during construction with the intention of
flipping the property for profit — by requiring an earnest
money deposit of 15 percent of a unit’s price.
Buyers aren’t as likely to walk away from earnest
money deposits of, say, $150,000, Anderson said.
Some industry observers have estimated that flippers
represented about 10 percent of the Texas coastal market.
Anderson said he’d have a better idea by August
about how much demand for Palisade Palms was generated by speculators.
Falcon Group isn’t shrugging off a housing slow
down caused partly by tightening credit. The firm is eyeing
the economy closely before it moves forward with construction
of the new tower.
Tightening credit, however, hasn’t been a big
issue for the luxury development, where 20 percent of prospective
buyers are paying cash, Anderson said.
The challenge to high-end buyers isn’t whether
they can afford a condominium at Palisade Palms, but rather
where the economy is headed and whether they should part with
their cash, he said.
Although Palisade Palms is the island’s tallest
building, Falcon Group has managed to stay out of the height
and development debate lately consuming island residents and
putting politicians in the hot seat.
At an anxiously awaited meeting Thursday, the city
council will vote on whether to approve a set of guidelines
and restrictions on high-rise development after months of emotional
debate.
Anderson and other Falcon Group principals have stayed
out of the fray. Their project isn’t affected by the fight,
nor is it in a zone where heights might be limited.
In city-conducted surveys, residents have said East
Beach, away from neighborhoods, is one of the most suitable
places on the island for high-rise development.
But it’s vital that the city offer clear rules
that strike a balance, Anderson said.
“The city needs to create a well thought out
plan based not on the political winds of the day, but one that
balances social, financial and environmental issues,”
he said.
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High-rise Amenities
Falcon Group, developer of Palisade Palms, offered
a sneak peak of the two 27-story, curvilinear condominium towers
at 801 East Beach Drive.
Amenities and features include:
• 20-foot water wall;
• Expansive balconies allowing all 288 residents
a panoramic view of the Gulf of Mexico and/or Galveston Bay;
• Units range in size from 1,044 square-foot,
one-bedroom to 3,000-square feet penthouses;
• Separate adult and children’ pool area;
• Beachcomber’s Kids’ Club with an
enclosed jungle gym;
• Terrace level Lanai Lounge, offering 360-degree
view of the bay and gulf;
• Morning Lounge and Cafe Bar; offering free
coffee 6 a.m. to 10 a.m.;
• A 3,500-square-foot fitness center, including
elliptical machines, treadmills and recumbent bicycles;
• Outdoor tennis and sport courts; and
• Bark Park, outdoor dog park.
