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Drewery Place: Multifamily High-Rise At 2850 Fannin St.


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Checked to see if there were a leasing website for 2850 Fannin and still could not find one. However, I noticed Caydon refers to the 357 units at 2850 Fannin as “condominiums.” They then go on to reference the project as apartments.

 

I’d wondered about presales to get financing for the northern portion of the project, but, it seems the term “condominium” might be used loosely on the website, giving me hope there might be a multifamily component to jumpstart construction on the northern towers.

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14 hours ago, houstontexasjack said:

Checked to see if there were a leasing website for 2850 Fannin and still could not find one. However, I noticed Caydon refers to the 357 units at 2850 Fannin as “condominiums.” They then go on to reference the project as apartments.

 

I’d wondered about presales to get financing for the northern portion of the project, but, it seems the term “condominium” might be used loosely on the website, giving me hope there might be a multifamily component to jumpstart construction on the northern towers.

I wonder if they have a figure in mind for the price of the condos and more importantly, the monthly maintenance fee.

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Anyone know what the monthly maintenance fees are like in a high rise condo building? I just don’t think the math works out in Houston. Have been reading profiles such as these for 2 decades and it’s always people in their mid-50s after kids leave. And they also seem to always be realtors.

 

The only high rise that seemed to make no brainer economic sense to me based on numbers presented was that one in EaDo with the micro units. 

 

Otherwise high rise rentals here seemed to be price (relatively) affordably. Do the developers assume the building flipping to a condo down the road? Are there any examples of high rise rentals flipping to condos here?

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5 hours ago, mattyt36 said:

Anyone know what the monthly maintenance fees are like in a high rise condo building? I just don’t think the math works out in Houston. Have been reading profiles such as these for 2 decades and it’s always people in their mid-50s after kids leave. And they also seem to always be realtors.

 

The only high rise that seemed to make no brainer economic sense to me based on numbers presented was that one in EaDo with the micro units. 

 

Otherwise high rise rentals here seemed to be price (relatively) affordably. Do the developers assume the building flipping to a condo down the road? Are there any examples of high rise rentals flipping to condos here?

High rise condo fees can range widely based on the age of the building, etc.  

 

a yardstick only: $0.75 psf is a good placeholder.  That yardstick is absolutely wrong in virtually every case.  Some buildings will be a buck.  Others half a buck.  Newer buildings tend to be cheaper than older ones.  Buildings with a ton of amenities will be much more expensive than those that don’t.  Highrises are more than mid-rises.  So, all that said....... 1500 sqft hig rise will be “around” $1000 per month for the HOA.  

 

The HAR app will let you look at various buildings around town and get a sense of HOA cost PSF.

 

 

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7 hours ago, mattyt36 said:

Anyone know what the monthly maintenance fees are like in a high rise condo building? I just don’t think the math works out in Houston. Have been reading profiles such as these for 2 decades and it’s always people in their mid-50s after kids leave. And they also seem to always be realtors.

 

The only high rise that seemed to make no brainer economic sense to me based on numbers presented was that one in EaDo with the micro units. 

 

Otherwise high rise rentals here seemed to be price (relatively) affordably. Do the developers assume the building flipping to a condo down the road? Are there any examples of high rise rentals flipping to condos here?

3333 Allen Parkway (The Royalton) was originally rental units, and then switched to condos after about five years.  

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I looked seriously into buying in a high rise at one time. I found that most of the ones I was looking at were very close to 0.75 a sf for maintenance. It didn't make any sense to me at the time. To me it was a very high price to pay in order to not have to maintain a house. That plus no yard and having to get in an elevator to take the dogs out were just too much for me. I would love the views but the cost and inconvenience were just too high. You can pretty much get a standalone house in the same area for half the payment. 

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On 3/7/2019 at 12:17 AM, mattyt36 said:

Anyone know what the monthly maintenance fees are like in a high rise condo building? I just don’t think the math works out in Houston. Have been reading profiles such as these for 2 decades and it’s always people in their mid-50s after kids leave. And they also seem to always be realtors.

 

The only high rise that seemed to make no brainer economic sense to me based on numbers presented was that one in EaDo with the micro units. 

 

Otherwise high rise rentals here seemed to be price (relatively) affordably. Do the developers assume the building flipping to a condo down the road? Are there any examples of high rise rentals flipping to condos here?

 

On 3/7/2019 at 5:49 AM, UtterlyUrban said:

High rise condo fees can range widely based on the age of the building, etc.  

 

a yardstick only: $0.75 psf is a good placeholder.  That yardstick is absolutely wrong in virtually every case.  Some buildings will be a buck.  Others half a buck.  Newer buildings tend to be cheaper than older ones.  Buildings with a ton of amenities will be much more expensive than those that don’t.  Highrises are more than mid-rises.  So, all that said....... 1500 sqft hig rise will be “around” $1000 per month for the HOA.  

 

The HAR app will let you look at various buildings around town and get a sense of HOA cost PSF.

 

 

 

it's hardly ever a dollar/cents kind of thing though, sure you are paying $1000 on top of your $2000 mortgage (probably higher even), which would get you the better part of a $600,000 home. that's a lot of home in a lot of places in Houston.

 

but then, you have to consider amenities. does that $600,000 home come with concierge/security? how about a trash service? do you have an onsite dry cleaner? lawn care? common area and a pool?

 

If you're considering a bungalow in the Heights for ~$600,000, a palace out in Katy, or a condo in midtown, that condo can start looking really nice.

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I found this article from back in November 2018 in which Joe Russo was interviewed by BisNow.  I thought his discussion of getting financing was interesting--basically,  there isn't much appetite to directly finance multifamily development back in Australia so "condos" are developed to be owned and rented out by various individual investors:

 

https://www.bisnow.com/houston/news/multifamily/exclusive-whyjoe-russochose-houston-seattle-over-the-typical-developer-route-in-new-york-la-and-miami-94610

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3 hours ago, houstontexasjack said:

https://imgur.com/gallery/6wdLbGQ

 

Got this shot walking across the bridge on MacGregor. Caydon’s tower is now quite prominent and looks like an extension of the Downtown skyline.

Within the next year to two years, 3300 Main, The Texas Tower, and maybe two more Caydons will be visible from this angle. It's going to be fun.

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On 3/15/2019 at 6:33 PM, houstontexasjack said:

I found this article from back in November 2018 in which Joe Russo was interviewed by BisNow.  I thought his discussion of getting financing was interesting--basically,  there isn't much appetite to directly finance multifamily development back in Australia so "condos" are developed to be owned and rented out by various individual investors:

 

https://www.bisnow.com/houston/news/multifamily/exclusive-whyjoe-russochose-houston-seattle-over-the-typical-developer-route-in-new-york-la-and-miami-94610

 

This is true in most of the world. The common practice in the US, where a single owner owns an entire large (200+ units) multifamily project is very uncommon in other parts of the world. 

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One great thing this image points out is the power of perspective. In this image it appears that the Wells Fargo building is much taller than the Chase building. Now we all know that 

the Chase is 5 floors taller, and definitely the tallest building in Houston. Since the Wells Fargo is much closer to us it creates the illusion of looking taller than the Chase. This is something you have to remember to take into consideration when looking at renderings and recognizing which building is closer, which will obviously make that building seem much taller than it really is. I know most understand this but I felt like there are some that might not have that understanding, and this clearly illustrates this optic.

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