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Drewery Place: Multifamily High-Rise at 2850 Fannin by Caydon


Urbannizer

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  • 2 weeks later...
  • 2 weeks later...
8 hours ago, j_cuevas713 said:

Wow Midtown is going to be amazing in another 10 years.

Agreed.  But, even in 10 years, there will be more to do.

 

and, if you think about that for a second, that means that it will take 25-plus years (say, ~2000- 2025) to rebuild "much but not all" of the wreckage of 40 years of decay.  

 

Once its lost, it takes a long time to come back.

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Anyone out there with knowledge of the real estate industry understand why building this tower as well as 3300 Main would be a go whereas Camden  and block 98 towers in downtown there appears to be great hesitation.   The latter two have received considerable incentives and the midtown towers have not.  Science, not economics is my field. 

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14 minutes ago, Twinsanity02 said:

Anyone out there with knowledge of the real estate industry understand why building this tower as well as 3300 Main would be a go whereas Camden  and block 98 towers in downtown there appears to be great hesitation.   The latter two have received considerable incentives and the midtown towers have not.  Science, not economics is my field. 

 

My guess is that the answer may relate to the developers behind the projects and, as always, the location of the projects.  Caydon is an Australian developer just stepping its toes into the Houston market for the first time who may not have a full sense of what an oil downturn in this town looks like.  Caydon is not otherwise exposed to a downturn in this market.  I think PMRG is building 3300 Main.  The only other multifamily project in Houston of theirs of which I am aware is 2929 Weslayan (that 40-story tower that was completed over by Central Market).  Because of their limited exposure to the multifamily market in Houston, they may have more of a "damn the torpedoes" attitude when it comes to building.  Caydon may not be getting US based financing for its project either.

 

Additionally, these two projects are located next to a hub of activity that is nearing completion in Midtown. There will be a litany of eateries, bars, and other activities available within short walking distance.  They might therefore appeal to younger tenants willing to deal with a reverse commute.  Block 98, although by Discovery Green,  is further away from the strip of bars that has popped up along Main Street.  Camden's property is located closer to the Toyota Center, which, from walking around the area, is a bit of a no-man's-land as far as eateries and bars.  I'd therefore think both Trammell Crow and Camden would have to offer more extensive concessions to get tenants into their properties over Caydon and PMRG, as they might end up being geared toward tenants who would prefer to simply walk to work Downtown.  Given the downturn in energy, there appears to be far less demand for such units right now.

 

Anyhoo, that's just my speculation. :) 

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59 minutes ago, Twinsanity02 said:

Anyone out there with knowledge of the real estate industry understand why building this tower as well as 3300 Main would be a go whereas Camden  and block 98 towers in downtown there appears to be great hesitation.   The latter two have received considerable incentives and the midtown towers have not.  Science, not economics is my field. 

 

Are we sure 3300 Main is a go? They're tearing down the building, but that would still be done if they'd decided to sit and wait, since there is parking revenue and lower taxes. It looks like this Caydon guy might be willing to build in this market based on what he's said, but even he might decide to stall after seeing the vacancy and absorption numbers as the year progresses. Construction isn't happening until there are construction crews on site.

 

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16 hours ago, Twinsanity02 said:

With this, the superblock and the 3300 Main tower, things will definitely pick up. Going to be fun to watch.

 

Im hoping that the park on the super block can be a mini Discovery Green, a sort of catalyst for the area. 

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On 10/26/2016 at 7:53 PM, KinkaidAlum said:

It's all about financing. If you have it, you likely build regardless. If you don't, good luck getting it.

I think developments like these are going to be winners in the game. 

 

Developers who are able to finance in down periods when material is more readily available and labor isn't as hard to come by will be ahead of the game. By the time this is ready for leasing we might be in a whole other economic atmosphere.  

 

By the time Camden is ready to build downtown he might be facing steeper construction costs. I say start on the up swing of the cycle and deliver in the height of recovery. 

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  • 2 weeks later...
On 5/2/2016 at 10:27 AM, cspwal said:

Looking at Google earth of Midtown, the two most obvious blocks are the two blocks bounded by Webster, Gray, Austin, and Crawford.  They have been green field for a while, and I'm not aware of any projects around there that have been announced.  There aren't many other dual vacant blocks; the ones next to Wheeler station had that announced project a while back.

 

This lot is along my commute.  Saw some progress this morning... but not sure for what?

2016-11-10 06.42.48

 

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2 hours ago, swtsig said:

they still don't have their debt lined up as far as i know... they sound motivated to make it happen though so here's hoping.

 

Some of the early press on this was saying it would be self-funded from their own capital. Not sure how reliable that was. Were they in the market for debt?

 

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self-funded definitely doesn't imply that they're forgoing debt, it likely means they are providing all the equity needed to line up construction loans, but that doesn't necessarily soothe over banks' worries on whether or not the loan can be repaid. investors are much easier to win over than banks as they don't have strict guidelines and regulatory hurdles to clear.

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  • Highrise Tower changed the title to Australian Developer Planning Five High-Rises For Midtown
  • Urbannizer changed the title to Drewery Place: Multifamily High-Rise at 2850 Fannin by Caydon

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