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Took this over Labor Day weekend. I haven't seen many shots from this angle.

this will start before the end of the year, per a very very good source.

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More new construction is delivering that is very little pre-leased or even 0% pre-leased and more subleases flood the market every week.

 

It will ramp back up eventually, but right now some folks are really hurting.

 

Is there really that much office construction being delivered with 0% pre-leased, or even very little pre-leased?  Serious question.

 

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http://www.bizjournals.com/houston/print-edition/2016/01/15/to-build-or-not-to-build-multifamily-developers.html

 

The article is behind a paywall, but an illustration on the map from the link indicates Hanover is closing on the land for this development next month.  I suppose they could always hold it for a little while while fears about the Houston market shake out as new inventory is delivered in multifamily this year.

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Wouldn't starting construction in a "relatively cheaper" environment be advantageous to builders? Why build when everybody is building? This way you are first to market when the local economy has rebounded a few years, no?

In theory, that would be sensible. However, the pall of the 1980's hangs over a lot of development decisions. Hanover's Montrose tower is topping out and should have units online soon. If Hanover can demonstrate relatively robust demand for that project, some of the concerns of lenders regarding overbuilding might be assuaged and construction financing might get freed up for this one.

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That is why Kirby Thor Equities will be starting to rise.  The New York firm were they received financing know how many people live within 15 miles.  Which is a lot of money per capita.      

 

The capital markets are closed for Houston multi-family development.  There is zero appetite in today's environment.  Banks are terrified of all things energy right now, including Houston.  It took forever for Thor to get construction financing, and they got it from Bank of the Ozarks which has a reputation for extremely lax lending practices. 

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Wouldn't starting construction in a "relatively cheaper" environment be advantageous to builders? Why build when everybody is building? This way you are first to market when the local economy has rebounded a few years, no?

Construction costs really have not fallen as much as one might think, and the equity has pretty much all dried up for Houston MF at this point.  I would be very surprised if Hanover was able to secure an equity provider, this definitely seems like a hold to me.  Anything energy-related is a no no right now.  We had a meeting at our office the other week and we talked about a developer who was recently trying to get financing for a larger-scale project.  He did a control 'F' and deleted the word "Energy" throughout his entire proposal.

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Construction costs really have not fallen as much as one might think, and the equity has pretty much all dried up for Houston MF at this point.  I would be very surprised if Hanover was able to secure an equity provider, this definitely seems like a hold to me.  Anything energy-related is a no no right now.  We had a meeting at our office the other week and we talked about a developer who was recently trying to get financing for a larger-scale project.  He did a control 'F' and deleted the word "Energy" throughout his entire proposal.

 

Did he talk about how -efficient the building was, with low  costs?

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My source (very accurate) says the funding is absolutely in and this is on. Groundbreaking this year.

My source too!

I usually saw 39 floors, but recently changed to 30 in the last few months.

30 stories on a 9 story garage y'all. Change back to 39

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My brother recently started working for a contractor that designs/constructs a lot of the 'guts' (internal workings) of multi-family projects around the country (many of which here in town) and this is one that they are on (also Aris Market Square and Skyhouse to name a few).  I'll try to pass along info on this one (and others) as it comes to me.

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52 minutes ago, brijonmang said:

My brother recently started working for a contractor that designs/constructs a lot of the 'guts' (internal workings) of multi-family projects around the country (many of which here in town) and this is one that they are on (also Aris Market Square and Skyhouse to name a few).  I'll try to pass along info on this one (and others) as it comes to me.

Mods, Delete this post so that the info can remain Anonymous (and thus continue to flow).

Brij, STFU dude!

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Plat was signed and filed to the County Clerks Office yesterday. I'll post it here whenever they upload the pdf. Now that the plat is signed, civil plans can go to the city/county (not sure if county is necessary or not) and after those are signed, construction should begin soon after. In fact, I'm pretty sure, for a project like this, city plans have been signed, or will be signed within the next couple of days. 

 

Wouldnt be be surprised to see this start to go up in the next couple of weeks.

 

Note: obviously Civil/Structural plans aren't the only thing involved, but they're usually the first step in the complicated process of building a High Rise.

Edited by BigFootsSocks
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Quote

But on Nov. 17 — about two-and-a-half years since the deal was initially set to close— Hanover finally purchased a nearly 1.7-acre site off Kirby Drive near Kipling Street, near the West Ave mixed-use project. The longtime developer plans to build a 40-story, 300-plus-unit apartment tower and a standalone restaurant on the property, where the 1940s-era Kirby Court apartments used to stand.

Hanover hopes to start construction on the $150 million project, designed by Chicago-based architecture firm Solomon Cordwell Buenz, within the next 12 months.

 

http://www.bizjournals.com/houston/news/2016/12/05/exclusive-houston-developer-finally-closes-on.html?ana=RSS%26s=article_search

 

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56 minutes ago, BigFootsSocks said:

Is that what the article refers to as "near the West Ave mixed-use project"? Are they referring to a Hanover project or some other developers mixed use project?

No, West Ave currently exists.

 

Gables_West_Ave_4-thumb1000x1000.jpg

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17 minutes ago, BigFootsSocks said:

Oh ok so that was just a usual swtsig tease then?

 

No, I'm pretty sure it was just a matter of swtsig having read the linked article, which includes:  "Another developer, yet to be announced, is planning a large mixed-use project across Steel Street from Hanover and Stolz’s projects."

Edited by Houston19514
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Is the other Steel Street project the Giorgetti?

 

Perhaps some updates in this recent article:

 

Quote

Giorgetti Houston. This 32-unit, seven-story mid-rise may be the most stylish building of all, thanks to its unique partnership with the venerable Italian furniture maker that shares its name. The first floor will be decked out with Giorgetti furniture, and the company’s handcrafted kitchen and bathroom cabinets and custom closets will finish out each unit.

The setting among the oak trees of Upper Kirby on Steel Street adds another graceful note.

 

http://www.papercitymag.com/interiors/houston-next-great-buildings-high-rises-seven-projects-tilman-fertitta-post-oak/

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I live across the street from Steele. The Giorgetti fence has been up for a couple months.

 

The new fence that went up yesterday that I'm referring to is specifically around this Hanover site. The site has been an eyesore since they demolished those apartments more than a year ago.

 

Even if they're not ready to start the apartment building itself, it looks like they are readying for site prep. There are some old foundations from recently demolished buildings on the Kipling side that need to be dug up.  

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4 hours ago, swtsig said:

As of 3 weeks ago they were not fully funded so this one probably isn't breaking ground quite yet.

 

2 hours ago, 'Stonian said:

3 weeks ago was, well, 3 weeks ago.

 

A lot can change in 3-weeks. Fully funded or not, lot prep has started and the buildings in the foreground were relegated to rubbish today.

 

They have been having trouble getting the funding but they have gotten close. I think this will happen just a matter of time. Hopefully sooner rather than later.

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  • Highrise Tower changed the title to Hanover River Oaks: 39-Stories

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