Luxury townhomes to be built on Hilton Head Island

A residential development project that stalled during the Great Recession is preparing to break ground.

Magnolia Place, a 26-unit luxury townhouse community, will be constructed at 90 Leg-O-Mutton Road on Hilton Head Island, according to K. Hovnanian Homes vice president of land acquisition Michael Saba. The project got town approval in 2008, but Saba said it was put on hold during the economic downturn.

K. Hovnanian is now contracted to purchase the Magnolia Place property and plans to develop the site in accordance with previously approved plans. Saba estimated construction will begin by the end of September.

He said the cost of the townhouses is "preliminary," but units are expected to be between upper $200,000 to mid-$300,000. Each two-story unit is between 2,000-2,400 square feet, including a two-car garage. The units are expected to have three bedrooms and 2 1/2 bathrooms.

The 2007 plan stated a Magnolia Place Property Owner's Association will maintain the grounds. Wetland areas on the property would be protected in deed restrictions and covenants within POA documents.

"For the sake of POA dues, we're not planning any amenities," Saba said.

Minor modifications to the approved plans will be discussed at the Design Review Board meeting at 1:15 p.m. Aug. 25.

Proposed changes include building the community as a "fee-simple" townhome subdivision POA instead of as a condominium, replacing the previously approved plans with K. Hovnanian plans and revising the site plan to include 26 townhouses in five buildings. Fee-simple properties give buyers complete ownership and the units have fewer restrictions, but the repair costs are typically paid for by the owner. In a condominium complex, HOA fees may cover unit repairs, but there are more restrictions because the association owns the land the condo sits on.

Saba said he hopes to start selling the townhouses this spring.

"I think this ... is going to go pretty quickly," he said, citing the "renaissance" he feels northern Hilton Head has undergone in the past few years. "The whole island is in (the community's) backyard."

Follow reporter Ashley Fahey at twitter.com/IPBG_Ashley.

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• Developments on the books , January 29, 2010

This story was originally published August 24, 2015 at 6:01 PM with the headline "Luxury townhomes to be built on Hilton Head Island."