Update to my housing block (the 5x18 interior, with housing strips on the outside), where we were speculating that it would evolve as well...
By placing the block four spaces away from the palace and temple complex (on one side), and a row of large statues on the other, with a small block of 2x2 worker housing on one end, and extra pavilions and senet house nearby, I got 8 palatial estates to evolve. I did put a row of small kitty status between each one, but if you wanted to micromanage the growth of the estates, I think you could get 10 Palatial Estates on the block (since you wouldn't lose the space to the statue rows, defining the space for each estate).
It did take several years to develop fully, because each estate would eat all of the 3rd food type until very full, before the next one got a chance. Eventually, though, all of the estates developed.
I will see if they are stable through the rest of the pyramid construction--this is Hepur-Icannot-spell-it.
(BTW, is it just me or do they almost give --too-- much room in this scenario. I have nothing on the outer banks except a wood cutter or food gatherer, and have 13K population.)
---SAJ