240-acre luxury development under construction on Gulf Coast

A 240-acre luxury master-planned community is under construction on Corpus Christi’s North Padre Island, and developers hope to attract Houstonians in the market for a seaside vacation home.

Whitecap, named for its proximity to Whitecap Beach on the Gulf Coast, is expected to feature about 600 residences built among 5 miles of canals; a commercial center with shopping, dining and entertainment; a resort-style hotel; a marina and boat storage facility; and a 30-acre nature preserve, according to a news release from project developer Ashlar Development.

The development, estimated to cost more than $800 million, broke ground in 2023, two years after property owner Diamond Beach Holdings demolished a failed Schlitterbahn water park that had occupied the same site since 2016. Developers say Whitecap, which is expected to be fully built out in about six years, could capture growing demand from within Texas and from out-of-state buyers for luxury real estate in the coastal community.

“We feel like there’s a draw to this location as a destination,” Ashlar Development Vice President of Development Terence Johnson told the Houston Chronicle. “The marina, the hotel and the commercial pieces really enhance that and make it very attractive.”

About 200 of the planned 620 residential lots are sized from about 2,500 to 7,500 square feet and priced from $300,000 to $850,000, Johnson said. Most of the lots are single-family, but about 40 are mixed-use residential and could be used for town houses or condominiums, he said.

Buyers can contract their own architects and developers to build custom homes on their lots, but the designs must align with Whitecap’s design guidelines, which stipulate a “coastal contemporary aesthetic,” Johnson said. Renderings show sleek, modern-style homes with terraces and large windows.

Whitecap’s homes must have a minimum of 1,400 square feet, Johnson said. Most lots come with backyard docks and direct access to a network of canals that will connect different neighborhoods, the developer said.

Nine lots have been sold to date and five homes are under construction, Johnson said. Developers plan to open five showcase homes in August, and two of them are expected to eventually be put on the market, he said.

“The volume seems to be picking up, so that’s really great,” Johnson said.

Developers initially expected that demand for the Whitecap sites would come primarily from cities within a five-hour driving radius, including Austin, San Antonio, Houston and Monterrey, Mexico, Johnson said.

But Corpus Christi has seen increased tourism from out-of-state visitors in recent years, Johnson said, so developers are now planning to market further afield.

The homes are expected to be a “good mix” of vacation homes and primary residences, Johnson said.

Developers want Whitecap to be a “lifestyle destination,” in the mold of resort communities in Florida, Johnson said. That means building trails for walking, biking and golf cart-ing, and plenty of docks alongside the planned commercial district so homeowners can take the canals to shop or dine.

“We’re really trying to get people out of their vehicles and on their feet, on a scooter, on a bike, on a golf cart or on a boat,” Johnson said.

The commercial district will be designed like “open-air, pedestrian-friendly, outdoor malls” with ground-floor retail and covered breezeways, Johnson said. Some retail stores could have second- or third-floor apartments above them for business owners who want to live where they work, he said.

Developers are in talks with hotel developers to build a boutique hotel on site, Johnson said. Though a developer has not been finalized, Whitecap envisions a 150 to 200 room hotel with a spa, bars and restaurants, space that could be used for conferences or weddings, and 24 detached, branded homes managed by the hotel, he said.

The capital investment for the project was pegged at about $800 million in 2023, but “it’s ticked up since then” because prices have increased, Johnson said. He did not give an updated estimate for the total capital investment. But the project’s owners are not shying away from betting big on Whitecap.

Whitecap marks a new chapter for the Corpus Christi site. The area was formerly home to a golf course, hotel and a $41 million Schlitterbahn water park that was never profitable, according to the Corpus Christi Caller Times. Schlitterbahn Corpus Christi was built in 2016 but declared bankruptcy in 2018 and was bought by Diamond Beach Holdings, a subsidiary of International Bancshares Corporation. Its new owner rebranded the park as Waves Resort and operated it until the COVID-19 pandemic, when the park was shut down, never reopened and eventually demolished in 2021.