Jump to content

CREguy13

Full Member
  • Posts

    423
  • Joined

  • Last visited

  • Days Won

    5

Everything posted by CREguy13

  1. Crane went up in the last few days. The construction in this area will be fun to watch over the next two years.
  2. It looks like this project has been delayed (Q1 2021) and scaled back considerably (31 floors now). Still a great project for Midtown when it happens, but hoping they add back a few floors by the time they break ground. https://caydonproperty.com/us/properties/laneways-condos
  3. I walked by Block 98 this morning. Not sure what was going on, but there was certainly activity with a few workers on-site. Maybe we begin seeing more progress in the coming weeks and this is still on schedule for 4/20 start date?
  4. Another great article from Costar on TMC. A big takeaway was the below statement from McKeon: 'McKeon said the TMC3 project is sparking interest and investment from private companies. He already has a letter-of-intent with a major industry player for a 500,000-square-foot-building in the complex.' "We'll be announcing deal after deal after deal with the industry. It's amazing the speed and the appetite they've had," McKeon said. "The sleeping giant has awoken and now we're open for business." Wondering who this could be... Medtronic or Johnson & Johnson perhaps? Houston Aims to Become a US 'Medical Device Mecca' The first successful artificial heart transplant. The first battery-powered heart pump. The first silicone gel breast implant. These medical device breakthroughs took place in Houston. Now scientists and civic leaders are hoping the city could be home to more medical device innovations, thanks to a confluence of a university's major expansion near the world's largest medical district, the Texas Medical Center, the city's relative affordability compared to high-tech areas such as Silicon Valley, and collaborations with top research institutions. Texas A&M University System and its partners plan to pour a half-billion dollars into a project near the TMC they say could help turn Houston into a growing hub for medical device innovation. The university system and Houston-based developer Medistar Corp. are behind the $546 million mixed-use complex that features three skyscrapers, including a renovated 18-story tower to house the university's medical engineering program where "physicianeers" in training are required to invent a medical device to graduate. It's not going to be easy: In a national ranking of regions for the medical device industry, Texas only ranked No. 7, and powerhouse states like California aren't sitting by idly. In Texas, officials are counting on Texas A&M's expanded medical engineering presence to add to public, private and educational research efforts already underway in Houston that could elevate a nascent medical device industry in the state, proponents say. The work is happening against the backdrop of the proposed 37-acre biotech campus, called TMC3, which is perhaps optimistically dubbed the "Third Coast" for life sciences and is expected to break ground in the second quarter. It may be a reach, and could be partly based on some big Texas bluster, but the effort shows how medical innovation is a driver of real estate development across the United States. "The ultimate goal is to have both the East and West coasts shaking in their boots — or whatever shoes they’re wearing," Dr. Paul Cherukuri, executive director of the Institute of Biosciences and Bioengineering at Houston’s Rice University, said in an interview with CoStar News. While the national competition is tough, and gaining funding is always competitive, Houston shows it can take on other cities. Houston is already home to more than 1,760 life sciences companies, and local institutions received $668 million in medical research grant funding from the National Institutes of Health in 2018, a 6.9% increase from the year before. Bill McKeon, CEO of the Texas Medical Center Corp., the nonprofit that oversees the 50 million-square-foot TMC campus where more than 100,000 employees work, said Texas and Houston are at a critical turning point. McKeon, who spent much of his career in the medical device industry at firms like Medtronic, argues that there is not a single city for known for medical device innovation, research and development, besides clusters in Boston and Minneapolis. He said CEOs at major medical device companies have started telling him they see Houston as the next go-to place for medical device innovation. McKeon said there are several medical device deals in the works for the proposed TMC3 campus that he expects to announce later this year. Plans for the campus call for 1.5 million square feet of buildings and parks designed to look like a double helix DNA strand from above. "I think the Medical Center … will be where the medical device mecca will happen in the United States," McKeon said in an interview. Expansion Challenge Restrictive covenants inside the TMC historically prevented private, for-profit companies from significantly expanding. Instead, nonprofit hospitals, healthcare systems and research institutions have dominated the district. The new TMC3 campus loosens restrictions for for-profit endeavors, opening new opportunities for for-profit companies to work alongside nonprofits, universities and research institutions. McKeon said the TMC3 project is sparking interest and investment from private companies. He already has a letter-of-intent with a major industry player for a 500,000-square-foot-building in the complex. "We’ll be announcing deal after deal after deal with the industry. It’s amazing the speed and the appetite they’ve had," McKeon said. "The sleeping giant has awoken and now we’re open for business." McKeon and others have noted that the TMC is attractive for product researchers because they can access a large, diverse pool of patients to develop and test new products. About 10 million patients visit the TMC every year, according to the TMC, and Houston is now considered one of the most ethnically diverse cities in the country. TMC3 is meant to put the industry, researchers and startups together to speed the time from idea to manufacturing new products. "When you’re working with patients, you want that feedback immediately to close the time from innovation to commercialization — and that really requires the industry side-by-side with researchers," McKeon said. Medical device deals inside TMC3 and the new Texas A&M University complex are expected to add to work already underway nearby at Rice University, a private research university with a medical innovation master’s program. A Rice University team of neuroengineers is developing a headset technology that can directly link the human brain to machines without surgery, backed by $18 million in U.S. Department of Defense funding. Texas is an attractive option for medical technology startups because of its affordability when compared to east and west coast cities. Among the nation’s 20 most populous metropolitan areas, Houston’s housing costs are 49.3% below the average, and its overall costs are 25.4% below average, according to the Council for Community and Economic Research. "The cost of doing research and startups out there and in Silicon Valley [is getting more expensive]. People are coming to Houston. I think you’re going to start seeing a lot more [medical innovation] hits coming out of Houston," Cherukuri said. Financial Collaborations While cities such as Boston benefit from collaborations with deep pocketed research institutions such as Harvard University and Massachusetts Institute of Technology, and Silicon Valley works with Stanford University, Houston has deep pockets of its own. TMC3 is a collaboration between Texas A&M University Health Science Center, University of Texas Health Science Center at Houston, Baylor College of Medicine and the University of Texas M.D. Anderson Cancer Center. The UT System and Texas A&M System rank in the top 10 in the nation for largest endowments of U.S. colleges and universities, and Rice University ranks in the top 20, according to the U.S. Department of Education. Texas has a big challenge in trying to catch up to other states. It lags behind states including California, Minnesota and Massachusetts for the medical device industry. There were 72, 471 professionals working for the medical device industry in California last year, where roughly $2.5 billion of venture capital funding flowed into medical device companies, according to industry magazine Medical Design & Outsourcing. That compares to Texas, where there were just 15,087 professionals employed by the medical device industry and just $53 million in venture capital funneled to industry startups. The Texas Medical Center, the eighth-largest business district in the United States, has already started to see more interest from the medical device industry. Fortune 500 medical tech company Johnson & Johnson opened its Center for Device Innovation in 2017 inside the TMC, the multinational firm’s only research and development center dedicated to inventing medical devices to make surgeries less invasive and bring procedures to underserved populations. Johnson & Johnson also runs an incubator program in the medical center called JLabs @ TMC, alongside an accelerator program for healthcare entrepreneurs called TMCx. The TMC Innovation Institute is also home to AT&T Foundry, which is researching network connectivity for prosthetic limbs. And last year, robotics company ABB opened a 5,300-square-foot facility within TMC dedicated to finding new ways to use robots in the healthcare industry. Integar, the largest medical device contractor manufacturer in the world, is headquartered in Plano outside of Dallas, and the state is home to several manufacturing facilities for Fortune 500 medical tech companies and subsidiaries such as Stryker, Cardinal Health and Becton Dickinson. One of the largest industrial construction projects underway in Houston is a 1.3 million-square-foot warehouse for Medline Industries, the largest private medical supply manufacturer in the world. Funding Challenge Becoming a national leader won't be easy. In speaking with executives at medical technology startups, Cherukuri, the Rice University professor, said raising venture capital funding in Houston continues to be a challenge, though that is changing slowly. After all, Houston isn’t known as a startup magnet like Austin, which in spite of being a significantly smaller city, raked in $2.2 billion in venture capital funding in 2019 across 263 deals, according to PitchBook data. Last year, venture capital funneled $543.9 million into Houston startups, the highest number on record for the Houston region, according to an analysis from Pitchbook by the Greater Houston Partnership. Healthcare and life sciences startups were the biggest target for funding, scoring about $244 million across 26 deals, according to the partnership. Half of that total came from Houston’s largest venture capital deal of the year, a $121 million series B funding to the immunology firm Allovir. Economic development and civic leaders in Houston are trying to spur startup growth in the so-called Innovation District, a proposed 4-mile district stretching from the Texas Medical Center north to downtown and is anchored by The Ion, an innovation hub redevelopment of a former Sears by Rice University in the Midtown neighborhood. Though the proposed Innovation District isn’t without its critics, proponents argue it could be a critical step in building a true startup ecosystem in the city. Justin Boyar, CoStar's director of market analytics in Houston, said the new Texas A&M program and The Ion could help generate the tech startup and venture capital interest in Houston needed to propel the medical device industry into a more national spotlight. "Midtown’s growing profile as a soon-to-be burgeoning tech cluster adds to the attractiveness of Houston’s growing medtech R&D cluster profile, as it provides density and room for a medtech presence to eventually grow," Boyar said. "Houston still has a ways to go to gain ground on the top medtech R&D hubs, such as the Bay Area, Boston, Minneapolis-St. Paul, and Warsaw, Indiana … but I do think Houston is moving in the right direction."
  5. Great HBJ article this morning. The bolded text at the end is very encouraging. Houston hospital systems, Texas universities and private developers are investing hundreds of millions of dollars to grow their presences in the Texas Medical Center — the planet’s largest medical center. Most recently, the Texas A&M University System announced on Feb. 20 that it would build a $550 million complex in the heart of the TMC. The development will include a new 19-floor student housing tower; a new 30-floor medical office tower; and a renovated 18-story building to house the university’s innovative EnMed degree program. The massive development project is being funded through a public-private partnership. State funds totaling $145 million facilitated Texas A&M’s land purchase near the TMC and the renovation of the existing 18-floor building. Private industry will cover the remaining $401 million to construct the two new towers. Having a large presence in the Texas Medical Center will aid Texas A&M’s medical research and recruiting capabilities, said Greg Hartman, interim senior vice president for the Texas A&M University Health Science Center. Just as Texas A&M invests in its sports facilities to recruit the nation’s top athletic talent, the Health Science Center needed to build a premier medical research facility in the TMC, Hartman said. “The same way you build weight rooms to recruit football and basketball players, and new gymnasiums and swimming pools to attract elite athletes, you’ve got to have those same kind of facilities to attract elite medical students and researchers,” Hartman said. Finding the industry loophole In 2017, the Texas A&M University System purchased an 18-story building on 5.5 acres at 1020 Holcombe Blvd. For-profit entities are barred from operating on the 1,400 acres owned by the nonprofit TMC — but Texas A&M owns its own land. That way, the university can attract and partner with for-profit corporations and public entities. “Because we are just outside of the medical center, we don’t have covenants or any restrictions dealing with private folks,” said John Sharp, chancellor of the Texas A&M University System. “So, a for-profit Pfizer could come in right next to somebody from Baylor College of Medicine that has rented some research space.” Houston-based Medistar Corp. is the developer for the Texas A&M project. Medistar also developed the InterContinental Houston-Medical Center, the first luxury hotel built in the TMC area in decades. The company is also nearing groundbreaking for the new Innovation Tower — a 48-story, mixed-use facility to be situated at 6700 Main St., next to the InterContinental. Paul McCleary, senior vice president of business development for Medistar Corp., said Innovation Tower will become the tallest building in the TMC when it’s completed. Innovation Tower will consist of ground level retail space; dry lab and research space for medical, biomedical and health tech companies; 410 luxury apartment units; and parking for up to 2,000 vehicles, McCleary said. Similar to Texas A&M’s project, Innovation Tower has for-profit entities in mind. Currently, if a health care giant, like a Pfizer or a Medtronic, were looking for a large office footprint in the heart of the TMC, they wouldn’t find it, McCleary said. Innovation Tower aims to fill that need. “If you’re a larger group that has a requirement for maybe [30,000], [50,000] or 100,000 square feet, the next question is, ‘Where is that available in the Texas Medical Center?’” McCleary said. “Today I would tell you it doesn’t exist.” Healthy growth Medistar recently broke ground on The Fountains, a 326-unit multifamily development at the corner of Alice and Ardmore east of the TMC, McCleary said. Aside from larger office space and student housing, McCleary emphasized the need for additional multifamily apartment units around the TMC as the area continues to grow. Outside of Texas A&M’s massive project and Innovation Tower, there are other major developments in store for the TMC. Bill McKeon, president and CEO of the Texas Medical Center, said groundbreaking for the new 37-acre TMC3 campus should happen in the second quarter of 2020. Five partners comprise the TMC3 founding institutions — TMC, Baylor College of Medicine, Texas A&M University Health Science Center, the University of Texas Health Science Center at Houston (UTHealth) and the University of Texas M.D. Anderson Cancer Center. Like the Texas A&M complex, TMC3 was designed to meet a person’s many needs — and not simply the needs of the working employee. The project is centered around a DNA helix-shaped green space promenade that will span the length of the campus. The facilities surrounding the promenade will include over 100,000 square feet of retail space. “The needs of our physicians and researchers have changed dramatically,” McKeon said. “They demand to be in work-live-play environments. They want to be in a densified area that has all the amenities necessary for the whole person — not just the person who’s going to work.” McKeon said there’s never been a more active time of development in the 75-year history of the TMC. From TMC3 to the Texas A&M complex to Innovation Tower — the world’s largest medical city is only getting larger. The TMC thinks that many new entrants will be for-profit corporations. “Now, we’re actually opening the doors and creating a whole new environment for industry to play right alongside, and the response has been really exciting,” McKeon said. Sleeping giant Other institutions in the TMC are investing hundreds of millions of dollars in hospital expansions. Memorial Hermann Health System — the largest health system in Houston — opened the new Sarofim Pavilion in late February. Susan and Fayez Sarofim, the billionaire behind Houston-based investment firm Fayez Sarofim & Co., donated $25 million for the project — the largest gift Memorial Hermann had ever received when it was announced in February 2018. The Sarofim Pavilion was part of a roughly $700 million renovation and expansion project at Memorial Hermann-Texas Medical Center, according to Memorial Hermann. The new 17-floor tower has more than 140 patient rooms; 24 operating rooms, including three hybrid ORs; a 335-seat cafeteria dubbed the Arboretum Café; and 900 new parking spots. Sarofim Pavilion also is the new home of the Red Duke Trauma Institute at Memorial Hermann-TMC — one of two adult Level 1 trauma centers in Houston. Operations for Memorial Hermann’s air ambulance service, Life Flight, moved on top of the new tower. In August 2019, M.D. Anderson Cancer Center broke ground on a $159 million expansion of its Proton Therapy Center at 1840 Old Spanish Trail. The expansion will grow the center’s footprint to over 160,000 square feet, enough room for the cancer center to house eight proton therapy radiation machines developed by Japanese technology manufacturer Hitachi. The center currently spans 73,500 square feet. On top of the hundreds of millions of dollars being poured into the TMC right now, even more deals with industry are waiting to be announced once TMC3 breaks ground, McKeon said. “They’re realizing that the sleeping giant has awoken and now we’re open for business,” McKeon said. “We’re just seeing it with Texas A&M University — and wait until TMC3 opens.”
  6. This doesn't bother me all that much and I actually welcome it. I always felt this project was not highest and best use being this close to CBD and on the Red line. There have been several quality mixed use projects completed, are under construction or have been proposed since the initial Hardy Yards plans were released. Also consider the amount of added density to the core, and I would think a number of big time developers would be very anxious to bid on this. It may sit on the drawing board for the near future with the amount of developments in the pipeline, but I'd expect a much larger project than the one it is potentially replacing.
  7. Part of the deal is A&M sells its 2121 W Holcombe land to Medistar for $51m? That would be best case scenario to have Medistar completely redevelop that plot of land across Main Street. Main and Holcombe will be quite the intersection in 5+ years.
  8. I'll go ahead and be proactive... see below from Costar: Entertainment company Live Nation has signed an office lease for creative space under construction in Houston in one of the city's biggest office deals so far this year. Live Nation, the world’s largest concert promoter, is planning to take about 75,000 square feet on floors 4, 5 and 6 in one of the buildings at the 800 block of Westheimer in the Montrose Collective mixed-use project, according to sources familiar with the company's search for space. A representative for Los Angeles-based Live Nation declined to comment "at this time." Montrose Collective is being developed by Radom Capital, which just broke ground on the project Westheimer by the Uchi restaurant at 904 Westheimer. The area was recently named as one of the nation’s top 20 coolest streets in a report by Cushman & Wakefield because of its walkability, diversity, nightlife, food scene and vintage stores. Plans include a 150,000-square-foot project, with about 40,000 square feet of high-end shops and restaurants, plus about 110,000 square feet of office space. The project team behind Montrose Collective previously said a technology tenant leased 75,000 square feet of office space, but declined to identify the tenant. Live Nation describes itself as an entertainment company, but it owns Ticketmaster, a massive online ticketing platform. Live Nation's current Houston office is located about 4 1/2 miles west of Montrose Collective at 2000 West Loop South in the Uptown-Galleria area, according to Moody Rabin, which leases the building for the owner. Live Nation leases about 48,000 square feet at 2000 West Loop South in a lease that expires in December 2021, according to Moody Rambin. It is not clear if Live Nation plans to vacate the space or use the Montrose area space as an expansion of its Houston operations. Live Nation, which posted $8.7 billion in revenue for the first nine months of last year, has been expanding its footprint elsewhere around the country. The company recently signed a 40,000-square-foot lease in a two-level space in a proposed high-rise in Seattle at 1200 Stewart, according to media reports. In December, Live Nation was also in talks to lease 40,000 square feet in a new Nashville project proposed at Fourth Avenue South and Chestnut Street. Live Nation declined to comment on any of its recent real estate leases. The entertainment company made almost $254.6 million in profit for the first nine months of last year, up about 13% from the same time the previous year, according to its most recent earnings results. Last fall, the company announced it had booked more than 1,500 stadium concerts and festivals in 2020, posting double-digit growth from the same time in 2018. Its full year 2019 earnings have not yet been released. Live Nation is under fire from anti-trust enforcers at the Justice Department for allegedly violating an agreement that allowed its merger with Ticketmaster in 2009. The agreement, which was recently extended into 2025, prohibits Live Nation from forcing venues to use Ticketmater instead of its competitors. The Justice Department has accused Live Nation of strong-arming six venues into using Tickemaster, which the concert giant has denied, according to media reports. Meanwhile, other large office deals signed in Houston so far this include a renewal and expansion by Enterprise Products Partners in downtown Houston at 1100 Louisiana for 512,845 square feet; about 92,500-square-foot sublease for EDP Renewables North America at 1501 McKinney St., also in downtown; and a 69,000-square-foot sublease in Houston's Uptown-Galleria area at 1500 Post Oak Blvd. for Sempra Energy, according to CoStar data.
  9. From Costar: The Texas Medical Center area is about to get denser with a new $426 million medical tower slated to rise near the quickly growing healthcare district. Baylor St. Luke's has started site preparation work for a 400,000-square-foot medical tower at its McNair Campus, across from the Michael E. DeBakey VA Medical Center, said Vanessa Astros, a spokeswoman for Baylor St. Luke's. The 12-story tower will be the new home of several facilities for the Baylor St. Luke's Medical Center, a joint venture between the nonprofits Baylor College of Medicine and CHI St. Luke’s Health. The new tower adds to ongoing changes around the world’s largest medical center, where more than 106,000 employees work across 50 million square feet of space, according to the Texas Medical Center website. There are $3 billion worth of construction projects underway in the Texas Medical Center, according to the website, spurring growth in commercial real estate for the surrounding areas as this major employment hub continues to expand. Baylor St. Luke’s new tower is slated for a site adjacent to the future TMC3, the proposed 37-acre biomedical research campus with multiple buildings and parks designed to be shaped like a DNA strand. The new Baylor St. Luke's project does not yet have an exact address, Astros said. For now though, planners are using 7200 Cambridge St., the general address for the McNair Campus, which is north of Old Spanish Trail and west of Cambridge Street. Baylor St. Luke's has been developing the 35-acre McNair Campus over the past several years since forming a joint venture in 2014 and then selling the historic O’Quinn Medical Tower at 6624 Fannin St. to Texas Children’s Hospital in 2016. That tower was renamed Fannin Tower in early 2017, according to a spokeswoman for Texas Children’s. Developed by Hines, the 1990s-era tower is recognizable for its two spires resembling a pair of hypodermic needles. Since selling that tower, Baylor St. Luke's has gradually relocated some of its services to the new campus about 1.3 miles away. The campus, a 650-bed academic medical center, already is home to two healthcare buildings: the Lee and Joe Jamail Specialty Care Center at 1977 Butler Blvd., and the Baylor St. Luke's Medical Center building at 7200 Cambridge St. Baylor St. Luke's will bestow the former name of its original home, O’Quinn Medical Tower, onto the newly constructed 12-story facility, Astros said. The name is after late Houston attorney John O'Quinn in recognition of his $25 million gift to the hospital. With construction of the new tower, Baylor St. Luke's plans to relocate the remaining services from the former tower on Fannin Street and expand other services. The tower will house multiple outpatient services including radiology, endoscopy and an ambulatory surgery center. The building will also be the new home to the Dan L. Duncan Comprehensive Cancer Center, which was ranked among the top 50 cancer hospital programs in the country by U.S. News and World Report. Construction is slated to start in May on the project, estimated to cost $426 million, according to Astros. The 427,000-square-foot facility will have an 8-story parking garage, along with new private roads and sidewalks, according to initial permitting documents filed with the state. The healthcare joint venture said in 2016 that the McNair Campus would eventually encompass $1.1 billion worth of capital improvements but it is possible those initial plans have changed. More details of campus plans are expected to be released later this year. Baylor College of Medicine is one of the founding institutions behind TMC3, along with the Texas Medical Center, Texas A&M University’s Health Science Center, M.D. Anderson Cancer Center and the University of Texas Health Science Center at Houston. The institutions are collaborating to build the expansive medical research campus to include shops, restaurants, residences, office, parks and plazas. About 5,000 square feet of office space is under construction in the Texas Medical Center area, which has a vacancy rate of 6.1%, one of the lowest rates among markets in the greater Houston area, according to CoStar analysts.
  10. Costar article: Houston's coolest street is about to get cooler. A plan to transform a section of lower Westheimer into a trendy, tree-studded retail-office hub with a modern library is beginning to take shape in the Montrose neighborhood. Construction on Montrose Collective, a 150,000-square-foot-project, is officially underway, the project's developers have found a finance partner, and a lead office tenant has inked a new lease. Radom Capital, the Houston-based development firm known for creating hip, walkable projects such as Heights Mercantile, has formed a joint venture with institutional investors advised by JPMorgan Asset Management for the project. The team hired the Michael Hsu Office of Architecture, an Austin-based design firm behind Uchi restaurants, Understory and several other high-profile Texas projects. Montrose Collective is at 802 and 888 Westheimer Road in an area recently named as one of the nation’s top 20 coolest streets in a report by Cushman & Wakefield because of its walkability, diversity, nightlife, food scene and vintage stores. Nearly 97,000 people live within a 2-mile radius of the area with a median income of $83,233, according to the report. About 37% of residents nearby are millennials, the report found. Radom Capital and Michael Hsu sought to design a project that blends into the neighborhood with mid-rise buildings and a canopy of preserved live oak trees. Plans call for about 40,000 square feet of high-end shops and restaurants, plus about 110,000 square feet of office space and a modern roughly 16,000-square-foot public library building. The project is estimated to cost at least $38.9 million for the three mid-rise buildings, according to state records. With a planned opening of late 2021, Montrose Collective is expected to bring six new dining options, along with 15 boutique retail spaces for local and first-to-market retailers, plus beauty and service providers. The Montrose Collective team didn’t want to just create a "boring box" retail center or typical office building. "Montrose is really the hub of everything creative and has the No. 1 concentration of James Beard Award winners in the state. We wanted to do something scaled to the neighborhood," Steve Radom, principal of Radom Capital, said in an interview with CoStar News. The team plans to build a four-story structure that connects to a six-story structure with a cantilevered walkway. The buildings open to an outdoor plaza with seating, greenery, trees and unique lighting fixtures. Radom Capital hired landscape architect, the Office of James Burnett, to design exterior public improvements that include decoratively tiled sidewalks, an expansive green wall that wraps around one of the buildings, hanging plants and custom planters throughout the site. "This is truly a mixed-use project and it's going to look like it belongs in the Montrose neighborhood," said Parker Duffie, vice president at CBRE, who is handling office leasing for the project with CBRE's Elliot Hirshfeld. The project already has signed a lease with an undisclosed technology company for about 75,000 square feet of office space on floors 4, 5 and 6 in one of the buildings, according to the project team. There is roughly 35,000 square feet of office space left in the project, according to the team. The roughly 2.5-acre project is planned along the north side of Westheimer on both sides of Grant Street. The property includes the existing Uchi restaurant and the building next door with Hue hair salon and Rosemont Social, which will all remain on site. East of those buildings across Grant Street, buildings that previously housed a Greek restaurant called Theo’s and a city of Houston police station are getting demolished. Construction is starting after the Houston City Council in December approved a deal with the Montrose Collective team to transfer ownership of the land where the former police station was housed at 802 Westheimer to the developers. City officials closed the police station as part of an initiative to get more police officers on the streets instead of behind a desk, according to a Dec. 3 city council agenda item. The police department is expanding its online reporting services and closing police stations in most communities, according to the city. In exchange for the land, developers are building a new public library for the city to replace the aging Freed-Montrose Library at 4100 Montrose. The city will maintain ownership of the library at 10001 California St. through a condominium unit agreement with Montrose Collective. Radom said he sought a condo agreement for the library to secure financing for the rest of the project easier. The library building design includes a two-story custom art installation to be designed by a local artist, according to developers. The city expects to open the new library by 2022, and close the 70-year old Freed Montrose Library. It is rare for a public library to be in a privately built mixed-use project, but Radom Capital said the team is emulating Bookmarks, a public library in Dallas in the NorthPark Center. Radom Capital said it also took inspiration from the new Austin public library downtown that has drawn accolades for its design, retail and outdoor landscaped plaza near the privately built mixed-use Seaholm District. "I love taking my kids to the library. We really liked the idea of a mixed-use project, not just being your traditional mixed-use project. Our thought was what is more endearing to the community than a community library?" Radom said. He is envisioning a "dynamic, interesting" "house of books” with events, programming and retail. The plans will introduce new office to a neighborhood without a substantial amount of office space and bring additional retail to an area already attractive to real estate developers. The city of Houston granted 28 building permits for sites on Westheimer Road in 2018, which is double the number of permits issued in 2017, according to Cushman & Wakefield's report.
  11. Had a chance to view these renderings. This building will have even more terraces than Texas Tower. I think this forum will be very impressed by the redesign. High quality project - hopefully it gets capitalized!
  12. This will be a great vantage point over the next 12 - 18 months!
  13. 6 Houston has been dead quiet. Very little substance there for several years. My money would be on 1 Market Square. There is a huge shift to this part of downtown by the tenants these new buildings are trying to attract. There was rumor of the Developer being in negotiations with a couple large tenants last year that would have met the pre-leasing requirement to start construction - I believe around 2024. I am not sure of the current status, but as Texas Tower continues to fill up the availability for trophy Class A space considerably decreases. I would not be surprised if more information came out later this year and this project broke ground in the next 12 - 18 months. Just my opinion.
  14. DLA Piper signed a lease for the entire 38th floor. 40% leased now.
  15. As long as it's functional/efficient, I'm most excited there's 5 levels of office in this project. Having creative office opportunities for companies from Montrose Collective through Midtown along Elgin, would be pretty outstanding for the lower Westheimer corridor.
  16. Short article, but here you go! On-Site Grocery Stores Are Becoming a Thing in This Texas City's Apartments Trend is Taking Off in Areas Packed With Rentals, Offices and Retail Sprouting freestanding, suburban supermarkets with surface parking have long ruled in vast Houston. Today, grocers are affiliating with apartment and office developers to afford stores in pricier urban locations. Building multilevel stores allows grocers to consider smaller tracts while offering efficiencies like shared parking garages with apartment and office tenants. According to a recent Urban Land Institute study, grocers are especially attractive partners because they serve as a destination amenity for residents and office tenants in mixed-use projects. In fact, grocery-anchored projects can charge a 20% rent premium, whereas mixed-use apartment projects with retail and office can charge a 15% rent premium to residents. Last year marked the arrival of Houston's first two apartment buildings situated over grocery stores. The Morgan Group's Pearl Marketplace at Midtown boasts a Whole Foods Market on the ground floor and its apartment units, which recently were completed. Midway Companies' St. Andrie at Buffalo Heights, located at Washington Avenue and Studemont, also recently delivered, and boasts H-E-B's first mixed-use grocery store. These grocery-anchored mixed-use projects echo the densification of Houston, and are changing the way some urban residents live and shop. Rather than stocking up on the weekend, residents living above a grocery store can take several trips a week, enjoying fresh produce and meats. Furthermore, residents can drive less and walk more, developing health benefits, as the need for a car diminishes.
  17. Wasn't sure where to post this, but AT&T is in talks to sell a 13-building portfolio, including the one pictured above. They plan to lease back 40% of the portfolio on a long-term basis, but did not indicate which buildings. So unclear whether they'll remain a tenant here or not, if the sale goes through.
  18. Based on the render, did HCA Healthcare sign the lease to kick this off? Let the medical office boom begin.
  19. What's interesting is the St. Danes site is not apart of this project. I wonder what the plans are for this corner.
  20. Costar article: On the heels of wrapping up a high-profile residential skyscraper in Houston's Uptown-Galleria area, DC Partners has more plans to change the skyline in the area. DC Partners plans to break ground next quarter on a 92,340-square-foot office and retail building at 4411 San Felipe St., according to the developer and NAI Partners, which is leasing the building. The seven-story building is expected to be home to DC Partners' future headquarters. The mixed-use building is across the street from Arabella, its recently completed 99-unit condo skyscraper where units start at close to $1 million. The project comes as developers respond to ongoing demand for new office space in mixed-use projects and certain areas of the city, despite a stubbornly high office vacancy rate across the broader Houston metropolitan area. Although Houston has bounced back from the oil bust of 2015, its office vacancy rates remain the highest in the country at 16.4%, according to CoStar data. Yet office tenants continue to seek newer buildings in a so-called flight-to-quality, spurring developers to pour money into building new office towers even as large swaths of space sit vacant in some areas of Houston. In total, the 4411 San Felipe project has roughly 79,035 square feet of office space and about 17,000 square feet of retail. For the office space, about 50,000 square feet is still available, said David Bateman, senior vice president office project leasing with NAI Partners. DC Partners and NAI Partners declined to disclose any signed tenants. DC Partners plans to move its headquarters to the site from its existing headquarters at 2506 W. Main St. in the Greenway Plaza area, where it leases about 3,000 square feet of space, according to CoStar data. The San Felipe office project is designed to have three levels of parking with valet parking services, and an outdoor terrace with landscaping and views of Houston skylines. The building is just north of the River Oaks District, a 650,000-square-foot open-air retail center with high-end tenants such as Cartier, Harry Winston, Baccarat and Dior. Project cost estimates were not disclosed for 4411 San Felipe. Although the Uptown-Galleria area has a vacancy rate of 16.7%, brokers and developers are saying they’re seeing demand for newer office space in the area known as Houston's second commercial business district. "The trend for years now has been the flight-to-quality in Houston and that's true in Uptown/River Oaks District in particular. [Quality] in my definition doesn’t necessarily mean nicer or newer, it means better access, more efficient use of the site, better, efficient floor plates, new modern, bright finishes," Bateman said. He pointed to his own company as an example of how finding newer space with the right square footage in the Uptown area can be a challenge. At the time, there were "very few options" for roughly 20,000 square feet of newer space with "modern, updated amenities" in the Galleria, Bateman said. "We have first-hand experience," he said. NAI Partners ended up in about 20,300 square feet at 1360 Post Oak Blvd. After a big burst in construction activity that pushed up the Galleria’s total office inventory by about 11% from 2010 to 2017, new office construction in the area has slowed considerably this year, according to CoStar data. There is just about 133,000 square feet of new office construction in the area, including a 68,000-square-foot building as part of Zadok Jewelers’ mixed-use project, according to CoStar data. That compares to 1.3 million square feet of new office construction taking place in downtown, Houston’s other busiest commercial district. Nearby, a 210,000-square-foot building, called 200 Park Place, at 4200 Westheimer is underway by Stonelake Capital Partners. The 411 San Felipe building is expected to be completed in the first quarter of 2021, 200 Park Place should be completed around March 2020 and Zadok Jewelers building is expected to be done at the end of 2020. DC Partners first announced the mid-rise office building in 2018, and it even received some initial building permits, according to city of Houston documents. The project initially was supposed to break ground in September 2018, according to state documents. A DC Partners spokeswoman said the gap in time from proposing the project until now arose as the group was exploring multiple options with tenants. Also since then, DC Partners has been busy with several projects, including completing construction at Arabella and pre-development for The Allen, a $500 million mixed-use, six-acre project by Buffalo Bayou, which recently broke ground. Initial plans for the Allen include a condominium-hotel high-rise, but the developer expects to add one or possibly two additional office structures in future phases of the project along Allen Parkway. It is one of the many new mixed-use developments in the works for the Buffalo Bayou area spurred by the $58 million revitalization of the river. Meanwhile, Hanover and Lionstone Investments are also breaking ground on the first phase of a 13.5-acre mixed-project by Buffalo Bayou, which also could include about 300,000 square feet of office space.
  21. It's a pretty long article: Houston's Buffalo Bayou Transformation Offers Flood-Plan Lessons to Other Cities How to Turn a Drainage Ditch Into a Regional Amenity in Era of Climate Change The growing climate change challenge facing commercial developers came into sharp focus as Hurricane Harvey dumped 27 trillion gallons of rain onto Houston two years ago, wreaking $125 billion in damage and displacing almost 30,000 people. Floodwaters rose 38 feet, destroying sections of a recently renovated public park. Urban planners and onlookers watched in astonishment as new lawns, picnic tables and shelters in Buffalo Bayou Park were swept into the flood that at one point made staircases, street signs and lamps barely visible. Mountains of sand and debris littered the park's western end. Yet within a week, joggers returned to the trails and the restaurant at the park resumed serving avocado toast to customers to raise money for flood relief funds. While it took a full year for the park to be fully restored, its basic functions were intact thanks to the $58 million revitalization that shored up the bayou’s historical role as a flood control mechanism for the city. Completed in 2015, it transformed what was basically a drainage ditch into a regional outdoor amenity with features that also serve as flood storage, according to an Urban Land Institute study. The relatively fast reopening signals how urban planning mitigated the damage of one of the costliest floods in U.S. history. And planners say it now holds broader lessons as the growing challenge to plan for the effects of climate change becomes a larger part of commercial development. “This is an issue that's facing cities across America in different ways," said Anne-Marie Lubenau, a Boston architect and director of the board behind the Rudy Bruner Award, a national urban planning accolade given to the Buffalo Bayou Partnership for its work along the bayou. "In Boston you've got coastal erosion and big snow storms; we’ve got fires in California; water is a challenge in [Houston] and this project addresses it in a bold way, but also in a way that, while it is unique and distinctive to the bayou, it also incorporates a number of design moves that can be adapted to other cities.” Houston, a city with no zoning codes that's not often held up as a bastion of urban planning, gained national attention from planners by showing how urban systems projects can create green spaces while planning for floods. The work included 2.3 miles of waterfront land along Buffalo Bayou, roughly the length of New York's Central Park, and it added 10 miles of walking and biking trails with four pedestrian bridges. The project spurred significant real estate building in the area. Since 2012, within a 1-mile radius of the project, nearly 6 million square feet of new multifamily and retail space was constructed, according to CoStar’s analysis. In total, about 50 new commercial properties were developed that, if sold today, could be worth about $1.4 billion, according to CoStar’s modeling. That's a significant return on investment for a project sparked by a partnership between the nonprofit Buffalo Bayou Partnership, the city and flood control district. It was kicked off by a $30 million gift from the Kinder Foundation, the nonprofit backed by Houston billionaire and oil baron Rich Kinder. Now, the Buffalo Bayou Partnership, the nonprofit behind that revitalization, is setting its sights on the east end of the bayou, which is much wider and less flood-prone, and it has long been an industrial area. The east end of the bayou turns into the Houston Ship Channel, home to 330 public and private terminals that are owned by more than 150 companies, and it empties into the Gulf of Mexico. Plans for the east end are much larger and more ambitious than what was done successfully on the bayou's west side. Buffalo Bayou East is a 20-year master plan expected to cost $200 million to transform four miles of waterfront land on the bayou and create 263 acres of parks and 40 miles of trails and paths with seven pedestrian bridges. Some land use experts are calling the plan one of the most complex waterfront redevelopment projects in the country. It comes as real estate investors are increasingly concerned about how climate change would affect real estate markets and urban planners from New York to San Francisco are looking for more ways to creatively manage water in growing population centers. “For those of us not from Houston, we don't think of the city as being associated with a strong ethic of planning. This really shifts the paradigm," said Lubenau. Former Industrial Sites In Houston, the bayou is not known for its pristine beauty – the brown, opaque waters of the river are home to bass, catfish, alligator gars, a fish native to Texas with razor sharp teeth, and alligator snapping turtles, as well as the occasional alligator. The bayou often has high levels of bacteria that make it unsafe for swimming and the Texas Commission on Environmental Quality recommends not to eat any fish caught in the bayou. Nevertheless, the Buffalo Bayou Partnership aims to transform a patchwork of public and private land, including several abandoned industrial sites, into an area focused on the water with seven boat landings. It aims to connect the African American and Hispanic communities of the Fifth Ward and Great East neighborhoods to one another and give the historically working class neighborhoods new access to nature and 200 acres of open space. “In some ways, what’s different about it is the scale and complexity of it all,” said Cary Hirschstein, a partner at HR&A Advisors, a real estate, economic development and public policy firm. It co-led the master planning process of the proposed east project along with landscape architecture firm Michael Van Valkenburg Associates. The project represents a unique infusion of investment into historically working class communities that typically don’t see investments of this scale, Hirschtein said in an interview. The restored industrial structures harken to other similar projects across the country, from Concrete Plant Park in the Bronx in New York City, Gas Works Park in Seattle or Steel Stacks Park near Philadelphia in Pennsylvania, which all turned industrial properties into nationally recognized community spaces. But this project would affect a much larger area than those parks in terms of acreage. “There are really incredible industrial elements that we want to celebrate. It’s going to be unlike any other place in Houston, if not the country,” Hirschtein said. The revitalization efforts focus first on 70 acres of land, including 50 acres owned by the Buffalo Bayou Partnership, running along a four-mile stretch of the river. But the plan envisions a much wider area of influence and aims to give developers and investors design guidelines and a vision for renovating the eastern side of downtown. The project is expected to be a game changer for commercial real estate in the area. “The Buffalo Bayou East revitalization plans are almost certain to lead to a rise in property values, which could drive a new vision for reimagining best-and-highest-use along the eastern portion of the bayou,” said Justin Boyar, director of market analytics in Houston for CoStar, in an email. Boyar notes two Houston neighborhoods, the Second and Fifth Ward, bordering the Buffalo Bayou East project are located in opportunity zones with tax incentives likely to attract investors. “If done smartly and inclusively, this could also be an opportunity to serve and unite historically neglected working class communities,” he added. Redevelopment Interest On the east side of the bayou, private developers are already making massive changes that could further speed growth and gentrification in the hip, former industrial district called EaDo, short for East Downtown, which is similar to Deep Ellum in Dallas or East Austin, Texas, which were both noted as "Cool Streets" on Cushman & Wakefield's 2019 report on hipness. “It’s definitely growing very quickly, we have quite a few developers looking into the district trying to see which properties are available and how they can start to redevelop,” said Jessica Bacorn, executive of the East Downtown Management District, the local economic development group for the area, in an interview. Bacorn said the district has seen an “influx of development” in recent years from new restaurants to coworking spaces. “The vibe that’s in EaDo, with all the arts and culture that’s already there, I think we’re seeing a lot of developers coming in who aren’t looking to change the culture, which is one thing I love about the district and the area. They’re looking at what’s already there,” Bacorn said. Midway, the developer behind the CityCentre mixed-use project in west Houston, is preparing to break ground on a 150-acre project along the eastern end of the bayou spanning 60 city blocks in Houston’s Fifth Ward neighborhood, which also is located in an opportunity zone. The project, called East River, is being touted as walkable where urban-meets-nature oasis that “celebrates local cultures, cuisines, arts and history” with 8.9 million square feet of office, 1,440 apartments, 500,000 square feet of retail space and 390 hotel rooms, according to Midway's website. Midway’s East River site, which was pitched as a potential location to Amazon during its second headquarters search, is one of the largest contiguous blocks of land in the nation located within a mile of several major employment centers: downtown, the Houston Ship Channel, and the Texas Medical Center, said Boyar, the CoStar analyst. “Given the Buffalo Bayou East and East River plans, combined with its opportunity zone status, the area is solidly located in the path of growth for urban infill development,” Boyar said. The plans are creating some jitters about gentrification and concerns about pushing low-income communities out. At a public panel to reveal the master plan in October, three protesters disrupted the meeting shouting anti-gentrification slogans for 10 tense minutes before an audience member convinced them to leave after police were called. The protesters, who were not arrested but refused to speak to media or provide their names, argued that east end development would raise land values and price out working class communities. Anne Olson, president of the Buffalo Bayou Partnership, told CoStar News it was the first time the nonprofit had heard vocal opposition to their plans in more than two years of community engagement discussions. Reclaiming Waterfront Proponents of the plan say it was drawn up in a way that aims to maintain the character and people of the community. A handful of other low-income residents at the meeting expressed support for the proposal. The issue of equity was important to the nonprofit’s master planning as the consultants for Buffalo Bayou Partnership engaged in conversations with more than a 1,000 people, said Hirschtein, the partner with HR&A who has worked on the project for four years. “There’s been a tremendous amount of investment in open space across the city and it’s tended to skew toward affluent places. This allows communities to reclaim their waterfront. These are communities that have been disconnected from their water space,” Hirschtein said in an Oct. 28 panel discussion about the partnership’s master plan. Concern about pricing residents out drove the nonprofit to think more broadly than just planning a beautiful park, he noted. “The plan has a real focus on inclusive economic development. There are elements that you don't see in a normal park master plan like providing affordable housing on-site as part of this project,” Hirschtein said. As part of the proposal, Buffalo Bayou Partnership wants to build a mixed-income residential community called Lockwood South, which would provide a combination of multifamily, single-family homes and workforce housing near Lockwood Drive. It would be next to other mixed-income communities proposed by other nonprofits with the help of disaster relief funding, said Olson, president of Buffalo Bayou Partnership, in an interview. The nonprofit is also redeveloping a 50,000-square-foot former barge terminal, warehouse and wastewater treatment facility along Navigation Boulevard into a community event center and possible incubator space for neighborhood businesses and food service at a site called Turkey Bend. Olson added that the partnership would aim to work with local entrepreneurs and small businesses with ties to the neighborhood in finding any retail tenants or assisting with event programming. “We could sell that property in a minute to some developer who could turn it into a shi-shi bar, but it is something that but we want to make into an community space for the neighborhood,” Olson said. Awaiting 500-Year Floods Beyond economic and cultural resiliency, the proposal also aims to bolster the environmental strength of the eastern side of Buffalo Bayou. Parts of the bayou are still recovering from Hurricane Harvey, when the region was devastated by flooding over four days in August 2017. That’s sparked an effort to this day to determine how to make Houston’s waterfront more resilient. And planners with the Buffalo Bayou Partnership are trying to take lessons from the historic flood. To combat the impact of possible flooding, the nonprofit’s plan calls for stabilizing eroding banks, designing structures that can withstand 500-year floods and creating spaces that are easier to clean after major flooding. Those types of storms are an increasing concern, with executives naming climate change the top risk to organizational growth this year, according to KPMG’s 2019 Global CEO Outlook report. And the United Nations Intergovernmental Panel on Climate Change urges elected leaders to make sweeping changes to combat climate change and sea level rise, such as creating dikes or seawalls, maintaining mangroves or coral reefs and raising buildings along shorelines. Scott McCready, principal of SWA Group, a key planner in the western end of the Buffalo Bayou Park, agrees that preparing for flooding is an increasingly good investment. "While we never anticipated a Hurricane Harvey scale, we did anticipate [flooding]. We had serious discussions about where to place trails, how to design docks, all that kind of thing. So we had an incredibly responsive plan and responsible design to help minimize issues," he said in the panel discussion. But the park also owes its resiliency to the public-private partnerships the Buffalo Bayou has formed with the city, the Downtown Development Authority and the Harris County Flood Control District, he said. “We have this partnership in place and that is how I define resilience,” McCready said.
  22. Breaking ground in Q1 2020, per HBJ article: Houston-based real estate investor Nitya Capital has partnered with Tema Development, also based in Houston, to bring another luxury apartment project to Hermann Park. Two Hermann Place will rise 32 stories at 1661 Hermann Drive near Jackson Street in the Museum District, next to One Hermann Place and The Parklane, both of which Tema also developed. The new tower is expected to break ground in the first quarter of 2020 and be complete in the winter of 2022, according to a press release. Page, an architecture firm with an office in Houston, is listed in the release, but a general contractor on the project was not included. “During our design process, we carefully researched every detail of this charming and historical area of Houston to build a residential space that effortlessly blends with the beautiful Hermann Park backdrop,” said Nadim Zabaneh, vice president of Tema Development. The release notes that some of the steps taken to capture the neighborhood's style in the design included matching the stone of the building to the nearby Museum District. “It was important for us to maintain the character of the Hermann Place area to create an authentic park-like setting for our residents,” Zabaneh said. The tower's 295 residential units will consist of 13 floor plans with an average size of 1,076 square feet. Units will feature high ceilings, quartz countertops and backsplashes, chef-inspired appliances, large closets with storage systems in every unit, USB charging stations and Nest thermostats. The tower's 18,000 square feet of community amenities will include a resort-style pool with a sunbathing ledge and cabanas, a 2,100-square-foot sky lounge on the top floor, a café bar, an 11,000-square-foot amenity deck on the eighth floor, a conference area, a dog park, a barbecue area and a fitness center overlooking the park. The building also will offer 24-hour valet service with transportation shuttles to nearby destinations, plus private garages, electric vehicle charging stations and other conveniences. The release also notes that Two Hermann Place is just the beginning of Nitya and Tema's partnership. "Both organizations look forward to a long-term partnership in efforts to design new structures and redevelop existing assets into modern and state of the art multi-use real estate projects," the release states. Tema completed The Parklane, a 35-story luxury condominium and apartment tower at 1701 Hermann Drive, in 1983. The developer broke ground in December 2014 on the seven-story, 224-unit apartment complex at 1699 Hermann Drive that's now called One Hermann Place. That project opened in 2016, and Tema said at the time that it was in the early stages of planning two high-rise residential towers called Two and Three Hermann Place on the remainder of the 6 acres next to One Hermann Place and The Parklane. Nitya is led by Swapnil Agarwal, a 2019 40 Under 40 honoree and a 2019 Most Admired CEOs honoree. He launched Nitya Capital, a privately held real estate investment firm, and Karya Property Management in 2013. Nitya Capital has grown from there to have more than $1.5 billion in total assets, including ownership and management of more than 16,000 units throughout Texas, as well as 250,000 square feet of commercial space.
  23. Subsidies aside, this is an extremely impressive project. There are a lot of start ups here, some of which are really starting to scale and getting large valuations. The Cannon is having to expand much quicker than they anticipated. Major Energy companies are putting teams out here (Chevron Technology Ventures, Shell Lubricants, etc) there are a lot of VC's and angel investors here, major law firms have presences out here, banks, cpa firms, etc. It really is crazy what they've done in a short amount of time and with its proximity to the Energy Corridor, I would not be surprised if its as successful or more successful than the Ion. Fortunately, I think it will be less of a competition, but instead have more alignment and promote one another's missions for the betterment of Houston. It will be exciting to watch both grow over the next 3-5 years and beyond.
  24. Drove by earlier this evening and they had pump trucks parked and workers on site pretty late in the night. My thought is this will be starting within a few hours.
×
×
  • Create New...