In the 19th century, Colonel Sam Robertson was just one such individual. Padre Island real estate centered on ranching, but that concept changed dramatically in the 20th century when Robertson dared to view the Island as a resort. Ferry service was established and two hotels were constructed – the Twenty- Five Mile Hotel and the Sportsman’s Hotel, also known as the casino.

With the completion of the Queen Isabella Causeway in 1954, real tourism began. John L. Tompkins stepped forward to attempt to make this Gulf island a resort playground. Tompkins commissioned a conceptual drawing to translate his vision onto paper and it is very close to how South Padre looks today. Tompkins began to sell 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 into two. By 1969 a few hotels and condominiums had been built along with beach cottages and the occasional luxurious home. Dramatic change came in 1974 when the new Queen Isabella Causeway was erected to carry the ever-increasing volume of traffic between Port Isabel on the mainland and South Padre Island.

By the mid-1980s, South Padre was a growing Gulf Coast resort. The momentum increased in the late 1990s and has continued into the 21st century as building cranes have become part of the skyline, new families have moved in, and more visitors from increasingly diverse regions have discovered the Island.

The availability of land for expansion coupled with increasing population and international attention have benefited the area with the expansion of business, educational, and recreational opportunities. In all parts of the Island, new projects are under construction and others are on the drawing board, including a project to further develop and enhance our popular bayside entertainment district.

Many 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 their property increase? Could they move here as a primary residence and enjoy coastal living full-time? Could they adapt to the changing patterns of retirement, fueled by technology, and split their work and leisure time between primary and second homes? The answer is “yes”.

According to a 2008 National Association of Realtors study, 33% of all existing and new home sales in 2007 involved vacation/investment homes, which is close to historic norms and slightly down from 36% in the previous year. Despite real estate market stumbles, real estate buyers who seek a vacation/family retreat or a future primary residence or who want to diversify their investments or expand tax benefits look toward South Padre Island and the lower Laguna Madre Area for opportunities.

In considering a purchase of resort property, a buyer, often in consultation with a professional Realtor, will weigh the merits of types, sizes, and locations of properties on the market, will decide whether the property will be in a rental pool, and may consider the possibility to transfer tax deferred equity via a 1031 tax deferred exchange.

In diversifying, a buyer may also weigh the merits of purchasing pre-construction property. A developer determines the demand for the condominium project or subdivision project through pre-construction sales and gives incentives to prospective buyers early in the process since a buyer is being asked to purchase something that is still intangible. During the course of 49 construction, prices typically increase thereby enhancing the probability that an early purchaser will accrue equity in the property before construction is completed.

Property management companies located on the Island offer varied services to the owner/ investor regarding rental properties and the buyer will want to evaluate these services, such as fees, variety of services offered, hours of operation, and internet presence. There is also a growing segment of property owners who choose to use technology and local contacts to enable them to manage their own rental properties.

The land within the present boundaries and to the north of the Town of South Padre Island is limited and developers/investors are stepping forward to take advantage of the remaining tracts and lots. According to the Coastal Texas 2020 study by the Texas General Land Office, Texas has approximately 367 miles of shoreline along the Gulf of Mexico and approximately 26 miles or 7% remain available for additional development or to add to the substantial amount already considered coastal natural resource areas. Studies are underway to gather data regarding infrastructure and environmental issues, including the possibility of the construction of a desalination plant to increase our freshwater resources as well as the construction of a second access to the Island from the mainland to accommodate transportation and safety needs as we continue to grow.

Our long tradition of capturing imagination to fuel the growth of South Padre Island continues and provides the determining impulse for the evolution of our Gulf Coast isle. We welcome you to come, be a part of this tradition, and be an Islander!