2929 Weslayan: Multifamily High-Rise At 2929 Weslayan St.

[houston-development]

for a little background, mandola got a really good deal when he purchased the property, even worked out of the back offices. when interfin offered terms where mandola could continue operating with free rent, figured it was too good to be true. which in hindsight, unfortunately, was the case.

interfin reneged, demoed the site, and now here we are.

[JWW]

for a little background, mandola got a really good deal when he purchased the property, even worked out of the back offices. when interfin offered terms where mandola could continue operating with free rent, figured it was too good to be true. which in hindsight, unfortunately, was the case.

interfin reneged, demoed the site, and now here we are.

Correct my slow understanding of your story, but are you stating that Interfin broke a contract offering free rent for the restaurant?

[JWW]

problem is, there really isn't a "fair" price because of the current lending environment and the huge gap between bid/ask. heck, mandola didnt want to sell but was made an offer they couldnt refuse. interfin overpaid and is now stuck holding the bag.

total hypothetical...

say a STRONG buyer wanted to move forward. to get a loan, they probably put down 40% equity of what the bank values the deal at (probably 25%+ less than what it would have been a year ago). top that off with personal guarantee on the outstanding loan. probably need to JV and use the land as collateral. if i were to guess, think a bank would put a value of $50 psf on the dirt today.

Thanks for the effort of estimating a "fair price." Also, are you talking about a "strong buyer" wanting to develop a vertical project here, that the bank values the deal at 25% less than pro forma estimated value of the developed project? 40% SUCKS but I am surprised the development loan would be a recourse loan....

Does Borlenghi want to get rid of the land (anyone know?) or hold out?

[houston-development]

Correct my slow understanding of your story, but are you stating that Interfin broke a contract offering free rent for the restaurant?

it's called "renegging" or "retrading" and unfortunately, happens all of the time in our industry. theres usually either a loophole or not worth the legal fees / headache / etc forcing a party to their obligations.

Thanks for the effort of estimating a "fair price." Also, are you talking about a "strong buyer" wanting to develop a vertical project here, that the bank values the deal at 25% less than pro forma estimated value of the developed project? 40% SUCKS but I am surprised the development loan would be a recourse loan....

Does Borlenghi want to get rid of the land (anyone know?) or hold out?

with the exception of hud 221(d)4, 99.99% of all development deals today include recourse.

borlenghi will sell at the right price. unfortunately for him, i dont foresee anyone buying it.

[JWW]

it's called "renegging" or "retrading" and unfortunately, happens all of the time in our industry. theres usually either a loophole or not worth the legal fees / headache / etc forcing a party to their obligations.

with the exception of hud 221(d)4, 99.99% of all development deals today include recourse.

borlenghi will sell at the right price. unfortunately for him, i dont foresee anyone buying it.

I guess the free rent deal was not big enough of a deal to Mandola to go after Interfin.....

Sucks sucks sucks about recourse....I just figured w 40 percent equity down, the deals would just be collateralized with the land and improved structure under construction and no personal liability on top....talk about a deal killer.

Again, maybe a very obvious question, but you don't see value at that site at 50 a ft or something near that? Are you saying you don't forsee people seeing value in that site or just many sites with current market conditions?

[TheNiche]

Are you saying you don't forsee people seeing value in that site or just many sites with current market conditions?

Based strictly on current market conditions, I'd be doubtful if there were a dozen parcels of land in Houston's urban core that had any value whatsoever because current market conditions are so completely unfavorable to the use of land for development in any capacity. Land only has positive transactional market value right now (to the extent that transactions can be made to happen) because people know that this won't last forever.

Even once development activity does pick back up, though, there are going to be a lot of people (and probably banks as well) finding that they got a raw deal on land they purchased in the mid-2000's.

[lockmat]

POOF

plans to build a 35-story apartment tower on a prime site inside the Loop, where the Confederate House, formerly State Grille, served diners for more than 50 years.

http://www.bizjourna...d.html?page=all

Edited September 23, 2011 by lockmat

[LTAWACS]

Awe. SOME!

[ChrisPHous]

Link

"Upon completion, the project will feature approximately 250 for-rent luxury apartment homes and 12,500 SF of ground-floor retail, which will be anchored by an upscale restaurant that will service the surrounding community and the tenants. Construction is planned to commence in the second quarter of 2012. "

[lockmat]

Link

"Upon completion, the project will feature approximately 250 for-rent luxury apartment homes and 12,500 SF of ground-floor retail, which will be anchored by an upscale restaurant that will service the surrounding community and the tenants. Construction is planned to commence in the second quarter of 2012. "

per the press release, this is a very vague description of what it will be like. I could not find a rendering on the architect's website.

RTKL, the global architecture and planning practice responsible for the project’s design, drew their inspiration from traditional architectural motifs but reinterpreted these in a fresh and contemporary way. The result fits well within the established upscale nature of the neighborhood and reflects a growing appreciation for quality design in today’s market.

[LTAWACS]

i hate to think that it could look like some of the other cookie cutter highrise condos such as "the mark" or "1200 post oak".

[KinkaidAlum]

I am thinking this is going to look more Miami or Dallas than tunnel form cookie cutter judging the other renderings for PM Realty Projects.

[Utinga]

I am thinking this is going to look more Miami or Dallas than tunnel form cookie cutter judging the other renderings for PM Realty Projects.

Miami or Dallas cookie cutter then? lol I just wished we could have something truly inspiring. IMO

[editor]

Added to the HAIF interactive going up map: http://maps.google.com/maps/ms?msid=206730043409095570269.0004a96360f502ee46915&msa=0&ll=29.738185,-95.441526&spn=0.00735,0.007199

[Montrose1100]

Miami or Dallas cookie cutter then? lol I just wished we could have something truly inspiring. IMO

When was the last time you saw an inspiring residential tower outside of Dubai? Condos & Apartment buildings are fillers, not corner stones.

[Utinga]

When was the last time you saw an inspiring residential tower outside of Dubai? Condos & Apartment buildings are fillers, not corner stones.

Touché. I can dream. They needn't even be anywhere near as inspiring as those you're talking about either. I understand for cost efficiency, etc the huge mega Corp developers use the same garbage over and over in all metroplexes. But..... Please? Am I in Denver, Saint Louis, Atlanta, Houston or.....? lol

[Utinga]

Something similar to this style, could possibly kick-start a new look for our fair city.

http://www.worldarchitecturenews.com/index.php?fuseaction=wanappln.projectview&upload_id=17554

[bachanon]

Something similar to this style, could possibly kick-start a new look for our fair city.

http://www.worldarch...upload_id=17554

it's fun to dream.......

didn't the story on the new tower at w. alabama and weslayan say "35" stories? should we change the title of this thread?

[Montrose1100]

Touché. I can dream. They needn't even be anywhere near as inspiring as those you're talking about either. I understand for cost efficiency, etc the huge mega Corp developers use the same garbage over and over in all metroplexes. But..... Please? Am I in Denver, Saint Louis, Atlanta, Houston or.....? lol

I wish the new residential towers wouldn't look so... cheap? The new one on Studemont comes to mind. At least they tried with 2727 Kirby.

[Utinga]

I wish the new residential towers wouldn't look so... cheap? The new one on Studemont comes to mind. At least they tried with 2727 Kirby.

Yes, for sure. I actually ran acros a very similar high-rise 2727 Kirby minus the balconies, believe it was in Europe somewhere. It was on an architectural site I was cruising. I meant to post the foto here, but got side tracked and now can't remember which site it was.

Edited September 26, 2011 by Utinga

[infinite_jim]

35 Storeys with 250 units? and "The Horizon" is going to be 21 storeys with 290 units...

I pass by this site regularly and didn't realize how small it is compared to the size of the proposed bldg. I imagine that the entire podium base will be the parking garage and with the unit count I can only imagine that at best half or a third of the site will hold the tower portion. I really had no idea the dirt was that pricey.

Very dense proposal but within walking distance to the Central Market.

[wxman]

From today's Chronicle:

http://blog.chron.com/primeproperty/2011/09/tower-to-rise-on-former-confederate-house-site/

Is there any way we can change the title to 35 stories instead of 27?

[lockmat]

From today's Chronicle:

http://blog.chron.co...ate-house-site/

Is there any way we can change the title to 35 stories instead of 27?

It usually takes PMing a mod to get that done. It's hit or miss if they see the message.

[editor]

When was the last time you saw an inspiring residential tower outside of Dubai? Condos & Apartment buildings are fillers, not corner stones.

Vancouver (many). New York (8 Spruce and others). London (The Shard, Strata).

Residential buildings are only as boring as the local government allows them to be. In all of the above cities, new development must meet high design standards. Right now there's a 45-story apartment building in Chicago that's been put on hold because a local neighborhood group doesn't think it's flashy enough. The developer is trying to rework it.

[Montrose1100]

Vancouver (many). New York (8 Spruce and others). London (The Shard, Strata).

Residential buildings are only as boring as the local government allows them to be. In all of the above cities, new development must meet high design standards. Right now there's a 45-story apartment building in Chicago that's been put on hold because a local neighborhood group doesn't think it's flashy enough. The developer is trying to rework it.

Well of course my statement was only a matter of opinion. The only thing inspiring about them is that they inspire me to make more money.

Marina City in Chicago is inspiring, but a by gone era. Residential can be flashy, I've seen some funky/cool places all over the world, but ” inspiring”, no.

[DrLan34]

http://www.bisnow.co...ory.php?p=18322

PMRG (with equity partner INDURE Fund) is launching its first multifamily development in Houston, a 35-story high-rise at West Alabama and Weslayan. We chatted with PMRG EVP/CFO Roger Gregory and SVP Bryant Nail. Bryant says the neighborhood is big for them (they want to provide that live/work/play environment), so they love this site one block from Central Market. Roger adds that the West Inner Loop has over 94% occupancy, several quarters of rent growth under its belt, and only 185 units delivered this year. PMRG is working with RTKL to design the community, which will feature 250 luxury apartments and 12,500 SF of ground retail. Roger tells us they have two designs on the drawing board and are considering style and budget. This will be the tallest building in the area, so PMRG wants to build a timeless piece of architecture that really stands out. Presumably without being bright pink with flashing lights.)

Here’s 1400 Hi Line, PMRG’s project under construction in Dallas. It’s the firm’s second multifamily development in Dallas and it has a lease signed even though it hasn’t topped out. PMRG hasn’t selected a GC for its Houston project yet; construction should start in late spring/early summer 2012. Look for initial occupancy about 18 months after groundbreaking. The project’s retail component will be anchored by an upscale restaurant; the rest of the space will be service-oriented. ARA’s Tim Dosch and David Marshall repped the firm in its land acquisition.

Edited October 19, 2011 by DrLan34

[Geoff8201]

Well that's good news...

but I have trouble envisioning a 35 story building on that piece of land with the number of lanes Weslayan and Alabama have currently... we'll see. I'll be eager to see the renderings of the two possibilities they are proposing.

this would be the tallest building between downtown and the galleria if built... I like the idea of it being mixed use, and ironic/poetic there being an upscale restaurant since that land was a restaurant before.

Hopefully this wont be another project to get scaled back... 35 story in the proposal, 9 stories by the time it actually gets built... hopefully not.

[Utinga]

"Roger adds that the West Inner Loop has over 94% occupancy"

This is interesting data. Would West inner Loop comprise of N. Loop to S. Loop? More like I-10 to 59,no?

[LTAWACS]

Something "twisty" would be cool I think.

[Geoff8201]

Something "twisty" would be cool I think.

Something like This maybe?

Edited October 19, 2011 by Geoff8201