Margaritaville Cottages at Galveston Island

Margaritaville Cottages at Galveston Island is a new residential masterplan located at 401 E. Beach Dr. in Galveston, Texas. The project involves the construction of 15,000 square feet of infrastructure and amenities on private land. The estimated cost for this development is $32,000,000, which calculates to $2,133 per square foot. This figure places the project in the top quarter of estimated costs for new construction filings in Galveston County, where the median cost is $700,000.

The scope of work includes site utilities and infrastructure, a master site plan, at-grade and above-grade amenities, and landscaping. Merriman Anderson Architects serves as the design firm of record for this project. The registered accessibility specialist is Casey Joe Anderson. The owner of record is RREAF Grand Beach Development, LP. This development is privately funded and intended for private use.

Construction Timeline and Status

Construction started in February 2025. TDLR completed plan review in January 2026, and the work is scheduled to finish in July 2027. The scheduled build window is 880 days, which is longer than the county median of 214 days for similar new construction projects. The project is registered with TDLR and holds a status of Review Complete.

The site is located in Galveston County, specifically within a FEMA Special Flood Hazard Area designated as zone VE. The ZIP code 77550 has an estimated population of about 23,542 residents. The median household income in this area is $46,262, and the median owner-occupied home value is $283,800. Housing in this region is mostly renter-occupied. Merriman Anderson Architects has six other TDLR-registered projects totaling $135,123,000, including developments in Austin, Plano, Waco, Pflugerville, and Dallas.

Galveston County’s unemployment rate was 5.1 percent in July 2026, which is higher than a year earlier. The project’s high cost per square foot and extended timeline reflect the complexity of building in a coastal flood zone. The registration was filed in December 2024, establishing the legal framework for this significant residential development on the Galveston Island waterfront.