Alabama’s “New Gulf Coast”
Cypress Village is One of Many GO Zone Properties Along Alabama's Gulf Coast.
Development Continues Along Alabama’s “New Gulf Coast” – Alabama Towns Stay True to Southern Roots
Construction continues along Alabama’s Gulf Intracoastal Waterway (ICW), an area that is now commonly referred to as “Alabama’s New Gulf Coast.” The ICW, once used for only industrial barge traffic, is now a true “Southern” cornerstone of growth in towns such as Orange Beach and Gulf Shores, Alabama.
“Even with the tremendous growth along the ICW, the residents of Alabama towns like Orange Beach, and others that dot the landscape, still hold tight to their Southern roots, and developers are keen to this trend,” says Mike Foster, Vice President of Marketing for the Alabama Gulf Coast Convention and Visitors Bureau. “This new growth comes in many forms – from entertainment districts and marinas, to retail centers and even quaint neighborhoods,” says Foster.
The cornerstone of development along the ICW in Orange Beach may well be The Wharf, a shopping and entertainment hub, including an outdoor amphitheater featuring concerts by Southern favorites such as Hank Williams, Jr., The Marshall Tucker Band and the Georgia Satellites.
Also along the ICW, you’ll find unique neighborhoods, for those who want to experience coastal living in an environment more like home. At Cypress Village, a community located on 80 plus acres adjacent to The Wharf, but not directly on the ICW, you’ll be just as likely to see school bus pull out of this neighborhood as you would a Cadillac with an Ohio license plate.
Completed in 1949, the Gulf Intracoastal Waterway is a 1,050-mile navigable inland waterway running from Carrabelle, Florida to Brownsville, Texas. The waterway has become a popular cruising destination for people interested in visiting coastal towns all along the Gulf Coast.
The ICW has captured the eye of many major real estate developers, including Birmingham-based REIT Colonial Properties Trust. Not only has it partnered with Orange Beach-based UCO Development on the Cypress Village project, the company is developing a proposed 1,350 unit luxury condominium and marina project along the ICW. These projects represent only two of the 30 plus developments currently underway in Orange Beach.
“Many investors and second-home/vacation home owners are realizing that you can still live a coastal lifestyle without living directly on the beach,” says Ross Easter of UCO Development.
Local realtor Chris Stovall, of Keller Williams RealtyÒ Alabama Gulf Coast, agrees with Easter, and also attributes much of the growth along the ICW to other factors, including reduced “hurricane anxiety,” as developments along the ICW are up to one mile inland, Alabama’s low property taxes and the area’s GO Zone designation. “Smart investors are now taking a second look at these alternative properties, and are shopping for property based on lifestyle needs and price – it makes the ICW very competitive,” says Stovall.
In 2005, Congress enacted the Gulf Opportunity Zone Act (“GO” Zone), which encourages redevelopment through tax incentives. The Act offers compelling tax benefits, particularly for real estate developments and property investments, and investors and second-home owners are taking advantage of these benefits.
While much has changed throughout Alabama’s Gulf Coast, some things remain the same. LuLu’s Restaurant has always been a staple for locals and visitors, and nothing can be more entertaining than a quick drive to the Flora-BamaÒ Lounge and Package in Perdido Key, Florida. This year-round establishment is a place where Southern folklore begins. Each year folks from around the Southeast visit the bar and take part in its annual Interstate Mullet Toss – an event where people meet along the Florida and Alabama state line to toss mullet at one another.
“Orange Beach and Gulf Shores were once sleepy fishing villages, but each has matured into sophisticated coastal towns,” says Foster of the Convention and Visitors Bureau. Foster added that people come to the area because they are familiar and comfortable with what it has to offer.
Statistics from the National Association of Realtors prove this to be true, as the typical second home is located a close 220 miles from the owner’s primary residence, and half are in the same state. Eight out of 10 drive to their property.
Look for continued growth throughout the area, as a study is currently underway for a long-sought bridge over Wolf Bay, linking Orange Beach with swaths of undeveloped land to its East, and providing another route to and from the beaches and Interstate 10.