Biloxi May See Condo Boom

October 12, 2005

Developer of project awaiting city approval predicts "resurgence"

By Scott Waller
swaller@clarionledger.com

Special to The Clarion-Ledger An artist's rendering shows Vue Crescente Resort and Marina condominiums now in development in Biloxi. Biloxi condominiums by the numbers 2 Number of condominiums under construction at a value of $48.4 million 21 Number of condominium projects in the permitting process 5 Number of apartment complexes being converted to condominiums 581 Number of existing units at 14 condominium developments in the city 3,858 Number of units at developments under construction or in the planning stage $386 million Estimated construction cost of six developments currently under review Source: www.biloxi.ms.us

Condominium projects are expected to be an important part of the rebuilding process along the Mississippi Gulf Coast.

Developers of Vue Crescente Resort and Marina, a condominium project that will be located on the waterfront of the Biloxi Back Bay, believe the project shows the strength of the market on the Coast.

"We are convinced Biloxi is going to see a resurgence. Not just in building back, but in building back better," said David Sanders, chairman of Sandmark Bay LLC.

Sandmark had begun developing the project before Hurricane Katrina hit the Mississippi Coast.

Sanders said plans already have gone before the city's development review committee and marketing materials were mailed this week.

"We met with (the review committee) the week before the hurricane hit, and we have met with them once since it hit," Sanders said. "The storm set us back a little bit, but we are moving forward."

The first phase of the proposed project will have a 30-story tower with 286 units. The second phase calls for a similar-sized building and a marina.

Sanders said the plans now will go before the city's planning commission. If approved, the Biloxi City Council would then be asked to sign off on it.

If everything is approved, Sanders expects construction to begin in early 2006.

"We could start working on the site sooner, but we are looking at construction beginning in the first quarter of 2006," he said.

Sanders said the total cost of the project hasn't been determined.

"With material costs changing, right now that is a moving number," he said. "Once we receive approval we will be able to have a better idea of what the costs will be."

Vue Crescente is an example of how developers are viewing Biloxi's potential, said city spokesman Vincent Creel.

"This is very encouraging," Creel said. "It shows the vitality of the market here in Biloxi."

In all, more than 20 condominium projects are working their way through the process, Creel said.

According to the city of Biloxi Web site, five of the projects have listed estimated construction costs totaling $386 million.

Creel said the Web site hasn't been updated since the hurricane hit, but he expects all of the projects to move forward.

"Not a single (developer) has called to back off of their plans," Creel said. "The condominium market is very speculative, but we are expecting there to be growth and investment in the area."

Vue Crescente will have units ranging in size from 1,200 square feet to 1,900 square feet. Sanders said there also will be some penthouse units.

In addition to the marina, the amenities will include a pool, tennis courts, spa and fitness center.

White Construction Co. of Jackson will be the contractor on the project.

The development is expected to be the first of many along the Back Bay, according to Biloxi Councilman Bill Stallworth. The city recently completed a project to widen Back Bay Boulevard to four lanes.

"This is going to be the first of many development projects you will see in this area as Biloxi develops into a true destination," Stallworth said.

Prior to Katrina, Condo developments were under way in several cities along the Gulf Coast. The $60 million Legacy Condominiums was set to open in late summer in Gulfport.

At the time, prices for condos along the Coast ranged from $200-$300 per square foot. How the storm will affect costs is still unknown.