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fernz last won the day on August 5 2014
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fernz started following Highrise Tower
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Highrise Tower started following fernz
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Hilton Americas renovation in lieu of Super Bowl? That would be a raw deal.
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GreenStreet: Mixed-Use Development At 1201 Fannin St.
fernz replied to MontroseNeighborhoodCafe's topic in Downtown
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City Center is in a similar island, yet they made walkable design work.
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If you don't count the Galleria
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My mistake, I thought there was 1M square feet. I did read the part about expenses on your post, but that ddoes not cover debt service (huge cost), RE taxes or maintenance.
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You are missing something. First of all, capping $30M at 6% gives $500M, not $600M. But more importantly, you should be capping net operating income, not gross income. To those $30M you need to deduct debt service, real estate taxes, maintenance, and expenses ( which will vary greatly depending on the type of lease)
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It will end up just like hardy yards
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If they bought for 50M, then that's when they got lucky!
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The Menil Collection At 1533 Sul Ross St.
fernz replied to MontroseNeighborhoodCafe's topic in Going Up!
Awesome news; thanks!!- 420 replies
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GreenStreet: Mixed-Use Development At 1201 Fannin St.
fernz replied to MontroseNeighborhoodCafe's topic in Downtown
Rottet Studios is designing the interiors?! Did you all miss that?? So, this WILL be a very high-end hotel indeed. Midway is putting its money where it matters (at least to the hotel customers, if not to haif posters). You can bet top dollar that this will be one of Houston's best hotels, no sexy exterior needed. -
GreenStreet: Mixed-Use Development At 1201 Fannin St.
fernz replied to MontroseNeighborhoodCafe's topic in Downtown
Disclaimer, I'm assuming you are talking about a place like greenstreet, and not a subsidized deli shop: Depending on the type of retailer, its market is anywhere between 1 to 10 miles radius (or even larger for destination locations). Assuming best case scenario, the market the retailer needs to capture is about the size of Downtown Houston. So in your example above, a retailer makes $8 by drawing in people from all the office towers and apartments in Downtown. Adding two more buildings to the mix is not going to almost double the income, not by a long shot. Put another way, if, say a restaurant, needs $10 to turn a profit (my disclaimer still standing) there is no way the people from 300 apartments will consistently spend $10 over a sustained period of time. You would get less than $1, on average. Now, if your tower has 5,000 apartments, it might be a different story. -
GreenStreet: Mixed-Use Development At 1201 Fannin St.
fernz replied to MontroseNeighborhoodCafe's topic in Downtown
Yes, I'm sure you're right. -
GreenStreet: Mixed-Use Development At 1201 Fannin St.
fernz replied to MontroseNeighborhoodCafe's topic in Downtown
You're absolutely right, that is an important distinction. Obviously a small, low cost shop has a different market from a national retailer. I probably should've pointed that out, but I was in the mindset of Greenstreet, and the type off establishments it has. My clarification in the subsequent post was to illustrate the difference, and make a case that they are not comparable. For clarification, many buildings have small delis that rely on the building occupants exclusively, but in many cases they are subsidized in the form of reduced rents, they are considered an amenity of the building. -
GreenStreet: Mixed-Use Development At 1201 Fannin St.
fernz replied to MontroseNeighborhoodCafe's topic in Downtown
I know his record as a developer, but not yours. I would guess he is the expert of the two.