Lake Texoma, one of the largest U.S. reservoirs, has a $6 billion master-planned development between the Texas and Oklahoma border anchored by a Margaritaville resort coming its way as part of a deal that's been in the works for 20 years.
Craig International and other investors formed Waterfall Development to acquire 3,114 acres in Denison, Texas, a city about 75 miles north of Dallas, in what is being called one of the largest land purchases in Grayson County's history.
Plans for the acreage include creating a master-planned development called Preston Harbor that would eventually have 7,500 homes, including single-family, active-adult and apartments, a $100 million Margaritaville resort, as well as retail, restaurants and an upscale marina.
Financial terms of the land deal were not disclosed. The acreage includes 9.5 miles of shoreline on Lake Texoma as well as 27 internal lakes — four of which are more than 25 acres. Preston Harbor is expected to transform Denison, opening the west side of the city to Lake Texoma. It would double the area's population, said David Craig, founder, chairman and CEO of Craig International which is based in McKinney, Texas, a suburb of Dallas.
The 90,000-acre Lake Texoma is owned by the U.S. Army Corps of Engineers and private property ownership that fronts the lake is rare.
"We are thrilled about this opportunity, I wish my buddy George was here to see this," Craig told CoStar News, referencing his friend George Schuler, who died eight months ago after spending years cobbling together the acreage for the development. Schuler was instrumental in buying 600 acres from the Corps of Engineers to own to the water's edge of Lake Texoma for the Preston Harbor project.
"We will not only complete his vision but expand on it," Craig said. "The growth of the Metroplex is pushing north, with it going all the way to the Red River, and this is right in the way of that growth."
Preston Harbor's development team is finalizing the land planning and engineering of the project. Construction is scheduled to start on the acreage's infrastructure in late 2024.
Another master-planned development on Lake Texoma is unfolding about 35 miles north of Preston Harbor on the Oklahoma side of the lake. Hard Rock International is teaming up with Oklahoma City developer Pointe Vista Holding to build a Hard Rock Hotel and Residences as part of the 2,700-acre Pointe Vista master-planned development.
Craig said he expects the recently announced Hard Rock Hotel at Lake Texoma to further enhance the area. Construction on the project is scheduled to begin in March with the hotel opening by mid-2026. While the Pointe Vista development in Oklahoma includes casinos, Craig said there are no immediate plans to advocate for gambling at his Lake Texoma project.
Gambling is largely illegal in Texas, but two bills arose in the state's last legislative session seeking to legalize gambling before being shot down by lawmakers.
Land Sales
For Preston Harbor, the development team anticipates selling off major parcels of the acreage in the next five years, Craig said. Craig is screening would-be purchasers of what is set to be a 1,200-acre active-adult development on the tract. He expects to pick a developer for this portion of the project by the end of March. Other large parcel sales could include home lot developers or sites for apartment developers.
If Preston Harbor is built as envisioned, it would also double the population of Denison, a city with more than 26,000 residents, according to the latest data from the U.S. Census Bureau.
Denison Mayor Janet Gott said in a statement the plans represent a "once-in-a-lifetime project" that will "reshape our entire region," providing a level of economic impact few cities will experience.
Dave Johnson, who is the former CEO of Plano, Texas-based Aimbridge Hospitality, is a general partner for Preston Harbor and his company Horizon Capital Partners is developing the proposed $100 million Margaritaville resort at Preston Harbor. More details on the Margaritaville resort will be released later.
“There is nothing like this in the Texoma area,” said Johnson in the statement. “We wanted a hotel partner with a reputation for delivering fun and laid-back luxury, which reflects the overall feel of Preston Harbor.”
The proposed Margaritaville would be the first hotel in North Texas for the brand that is named after Jimmy Buffett's hit song. Margaritaville Lake Resort on Lake Conroe, which is about 50 miles north of downtown Houston, opened in 2020, marking the brand's first resort in Texas. And the Margaritaville Beach Resort South Padre Island opened in June in South Padre Island, Texas, which is near the border with Mexico, after a multimillion-dollar conversion of an existing property in South Texas.
“We’re excited about our continued growth throughout the state of Texas," said Jim Wiseman, president of development at Margaritaville, in the statement.
For the Record
The general partners behind the Preston Harbor project include Craig, Johnson, Choctaw Nation of Oklahoma and N9 Capital Partners. Craig International's Chief Operating Officer and President of Development Miles Prestemon is the project manager of Preston Harbor. The sellers of the acreage, Preston Harbor and Preston Harbor Homeplace, were represented by Steve Cook of Steve Cook & Co. and Jim Meara of Jim Meara Co. The buyers were represented by James Craig of Craig International, and John Auletta and Kaitlyn Sogga of JTA CR Group.