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Developer Advances 68-Unit Condo Plan

By Jennifer D. Duell

Last updated: March 9, 2005

HOUSTON-Local development company, Pelican Builders Inc., plans to break ground within 30 days on its first mid-rise residential condominium project. The 68-unit Briarglen, set to deliver in late 2006, is the first of three buildings for the first phase of a redevelopment plan for the Mid Lane neighborhood.

The condos, tagged at $240 per sf, will rise at 2215 Briarglen Dr. between Westheimer Road and San Felipe Boulevard. Derek Darnell, president of Pelican Builders, tells GlobeSt.com that 27 units have been pre-sold since Pelican began marketing the project in summer 2004.

"We feel like we have find a nice little niche for the middle market," Darnell says, adding other condo projects in the immediate area are either lower-end apartment quality condos or million-dollar-plus condos.

The six-year-old company, which specializes in townhouse development, purchased the one-acre tract in the Mid Lane area inside Loop 610 from a local partnership in December after having it under contract nearly 12 months, Darnell says. "We have been actively developing townhomes in the area for the past five years so we're familiar with the area," he adds. "We knew this type of mid-rise condo project would be well received."

Briarglen, designed by urban residential team of Ziegler Cooper Architects, will feature a contemporary exterior with more traditional interiors--six floors of condos and two parking levels. Each condo will have a high-end finish-out with granite countertops, stainless steel appliances, double crown molding and marble bathrooms. There are six floor plans in a mix of one-bedroom with study units and two- and three-bedroom units plus one penthouse. More than 50% of the condos will be two-bedroom designs. Units will range from 1,100 sf to 1,800 sf.

Pelican Builders is working with a lender to finalize construction financing for the project. GT Leech of Houston has been chosen as the general contractor.

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more developement a little further west

Arizona Developer Acquires Galleria Tract

By Jennifer D. Duell

Last updated: March 17, 2005

HOUSTON-Great Western Land and Recreation Inc. has claimed a half an acre in the Galleria submarket, where it plans to develop nine three-story condos. The tract has brought $600,000 to $700,000 for the seller, a group of foreign investors.

The Scottsdale, AZ-based developer's first project in Houston fronts Dolores Street near its junction with Chimney Rock Road. "There is not a lot of land left in the Galleria," says David Weber, Great Western's president and COO, "and there is a lot of demand for this type of housing." He tells GlobeSt.com that similar land sells for roughly $30 per sf, but can reach as high as $35 per sf.

Great Western will break ground nine townhouses in May. The three-story units, each 2,800 sf, will have three bedrooms, two-car garages, third-floor balconies and high-end finish-outs. Weber says the units, priced at $300,000 to $400,000, will deliver before the year ends.

"There are a lot of people who want to live in the Inner Loop with all the amenities, but don't want to live in an apartment or have a big yard," Weber says. He says he's looking for other Houston-area sites primed for 10- to 15-unit designs. The developer has a 43-unit development under way in College Station and 48-unit project rising in Glendale, AZ.

Great Western's in-house teams designed the development and will build it. First Bank & Trust of Houston provided construction financing.

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HOUSTON-Great Western Land and Recreation Inc. has claimed a half an acre in the Galleria submarket, where it plans to develop nine three-story condos. The tract has brought $600,000 to $700,000 for the seller, a group of foreign investors.

I am a little perplexed as to how this developer can make much money on these townhouses.

Assuming 9 units sell at $350k each. The total revenue from the deal would be $3,150,000

Lets say they got the land for $600k and assuming the townhouses cost $100 per square foot all in with selling and holding cost included in that figure. The total cost of these units would be $3,120,000. (2800 SF * 9 Units * $100/sf = $2,520,000 + $600,000 for land)

I used $100 per SF because the article mentions the addtion of high end finishes. I am not sure if that number is right on, too high or too low.

I must be missing something. Either the units will have to be built for substantially less than $100 psf or the units will have to sell for over $350K (Even at $400 k per unit the numbers are still not that great.

Any homebuilders out there want to set me straight.

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  • 1 year later...

Speaking about the condos themselves, it looks like they will be zoned to the brand new HISD school (St. George Place) going up along Hidalgo street.

The address is also zoned to Lanier MS and Lamar HS.

I wonder if this means the condos will be more expensive and/or sell faster?

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Speaking about the condos themselves, it looks like they will be zoned to the brand new HISD school (St. George Place) going up along Hidalgo street.

The address is also zoned to Lanier MS and Lamar HS.

I wonder if this means the condos will be more expensive and/or sell faster?

Lanier Class of 01'.

I went there, pretty good Vanguard school

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  • 4 weeks later...
I am a little perplexed as to how this developer can make much money on these townhouses.

Assuming 9 units sell at $350k each. The total revenue from the deal would be $3,150,000

Lets say they got the land for $600k and assuming the townhouses cost $100 per square foot all in with selling and holding cost included in that figure. The total cost of these units would be $3,120,000. (2800 SF * 9 Units * $100/sf = $2,520,000 + $600,000 for land)

I used $100 per SF because the article mentions the addtion of high end finishes. I am not sure if that number is right on, too high or too low.

I must be missing something. Either the units will have to be built for substantially less than $100 psf or the units will have to sell for over $350K (Even at $400 k per unit the numbers are still not that great.

Any homebuilders out there want to set me straight.

I'm not a home builder and I'm not working in the industry. However, my husband and I happened to talk to the sales staff of this mid-rise. We were told that a two bedroom unit is sold at around $500K. There might be some one bedroom units with study being sold at high $300K, but nothing is under $300K. As of mid March of this year, a lot of the units have been sold out. We've also heard that the owner of the building (or the builder, whoever that may be),is going to live in this mid-rise once it's done! By the way, the monthly maintenance fee is $600, which is lower than the $800 maintenance fee of Greenway Plz. We've also talked to the sales people of the brand new town house complex next to this mid-rise. The town houses are very small (2-2) but being sold at close to $300K. Because of the price and the lack of parking on the street, we decided to move out of the loop. B)

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I am a little perplexed as to how this developer can make much money on these townhouses.

Assuming 9 units sell at $350k each. The total revenue from the deal would be $3,150,000

Lets say they got the land for $600k and assuming the townhouses cost $100 per square foot all in with selling and holding cost included in that figure. The total cost of these units would be $3,120,000. (2800 SF * 9 Units * $100/sf = $2,520,000 + $600,000 for land)

I used $100 per SF because the article mentions the addtion of high end finishes. I am not sure if that number is right on, too high or too low.

I must be missing something. Either the units will have to be built for substantially less than $100 psf or the units will have to sell for over $350K (Even at $400 k per unit the numbers are still not that great.

Any homebuilders out there want to set me straight.

Sounds to me like a steal of a deal for whoever buys one of the three-story units

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  • The title was changed to The Briarglen: Condos In River Oaks

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