Dallas-based builder Megatel Homes is using the image of the Riviera in Houston to pitch its planned $2 billion Saint Tropez development in Houston, one of its 12 master-planned lagoon-centered communities offering resort-style amenities.
Pre-sales are expected to begin within the next 60 days and phase one of Saint Tropez is expected to be completed by the first quarter of 2023, according to a company press release.
Megatel’s Saint Tropez community will include 4,500 single-family lots, ranging in size from 1,500 square feet to 4,000 square feet and priced from $350,000 to $700,000 each. Multifamily rental units will include one-, two- and three-bedroom options with rental rates starting at $1,200 per month.
Megatel’s price-point coupled with resort style amenities may attract potential Houston homeowners who are now starting to delay home purchases.
The centerpiece of the development is a man-made lagoon with white sand beaches and luxury amenities. Saint Tropez’ lagoon will feature a swim-up bar, FlowRider surf simulator, a water slide tower, a playground, cabanas, a soundstage and splash park. The community will include an entertainment district offering residents and the public a restaurant, bar, adult lounge, teen arcade, bowling alley and a children’s indoor play area. Residents can also access a fitness and yoga studio and event spaces.
Saint Tropez will be Megatel’s sixth Houston development. As the rationale for its expansion in the region, Megatel cited Bureau of Labor statistics that currently places Houston as having the sixth-largest growth in employment in the U.S. over the past year. Houston, like Dallas, has also attracted large employers to move their headquarters from California or set up shop in the Lone Star State.
Notably, Hewlett Packard Enterprise and Maddox Defense have moved their corporate headquarters from California to Houston.
Texas’ plan for a highway expansion project in the area to handle the increased numbers of commuters was another reason to expand, according to the release.
Apparently, some developers are still bullish about their prospects in suburban Houston compared with suburban Dallas.
Despite Federal Reserve interest rate hikes and rising real estate price appreciation in Houston, Megatel was able to acquire the land for the Saint Tropez development at a “reasonable price, as the value of the land has nearly doubled since purchase” and “significantly expand operations due to the unique financing structure through MCI Invest, according to the release.
The purchase price for the future home of Megatel’s Saint Tropez development and financing terms provided by MCI Invest were not disclosed.
[Megatel Homes Press Release] – Karn Dhingra