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Drewery Place: Multifamily High-Rise At 2850 Fannin By Caydon


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22 hours ago, Ross said:

Their goal is to maximize the  usable space they can sell. That means boxy. That's just the way it is. What would you build, if you were using your own money, or investor's money? Something cool and cutting edge, or something that maximized your profit?

But there have been plenty of buildings in Houston that were cool and cutting edge rather than boxy, and that brought profit to their investors. How do you know that a boxy building is the only building that can be profitable? Have you seen the cost sheets and revenue projections?

 

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4 minutes ago, H-Town Man said:

But there have been plenty of buildings in Houston that were cool and cutting edge rather than boxy, and that brought profit to their investors. How do you know that a boxy building is the only building that can be profitable? Have you seen the cost sheets and revenue projections?

 

Not for those specific buildings, but I've had enough discussion with my architect and developer friends to learn what shapes maximize profits. Some developers may not want to maximize profits, but the boxy designs help that goal. Keep in mind that I didn't offer an opinion on whether that's good or not, I just offered an explanation of why it happens. I've also been in buildings in the Middle East that were cool shapes, and the floor plans were awful, since it's hard to maximize usable space in circles, ovals, truncated cones, etc.

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15 minutes ago, Ross said:

Not for those specific buildings, but I've had enough discussion with my architect and developer friends to learn what shapes maximize profits. Some developers may not want to maximize profits, but the boxy designs help that goal. Keep in mind that I didn't offer an opinion on whether that's good or not, I just offered an explanation of why it happens. I've also been in buildings in the Middle East that were cool shapes, and the floor plans were awful, since it's hard to maximize usable space in circles, ovals, truncated cones, etc.

Some developers are more daring, others are more safe. Architectural enthusiasts are going to applaud the daring ones and groan at the safe ones. Just the way it is. Part of the reward for taking risks is winning the gratitude of the public.

 

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Boxy isn't bad. Most of Houston's more iconic buildings are boxy. I think those translucent plastic models aren't a good representation of what this will look like.

Also I think it looks good. It kind of reminds me of something you'd see in Miami, in a good way. The rounded corners, darker glass, etc, do that.

Edited by zaphod
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4 hours ago, Tumbleweed_Tx said:

the "points" at Pennzoil Place may look cool from the outside, but they are wasted space inside. You can't do anything with them except make them storage or mechanical areas

Or turn them into a cool architectural bar/restaurant 

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18 hours ago, Tumbleweed_Tx said:

the "points" at Pennzoil Place may look cool from the outside, but they are wasted space inside. You can't do anything with them except make them storage or mechanical areas

But because they looked cool, Hines was able to charge more for rent throughout the building and make more money. This was his innovation in high-rise office development in the 70's. He realized that a less efficient building could be more profitable because of the aesthetic appeal.

 

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  • 2 weeks later...
27 minutes ago, MarathonMan said:

Where is the other Midtown location?  I know of Montrose, Med Center and Downtown locations.  

Common Bond is also opening up at the Ion. 
 

Edit: I think both the location at the Ion and the location at Drewery Place will be “on-the-go” concepts similar to what Common Bond has up in the Heights (cold sandwiches, pastries, coffee, but without the full menu that includes hot items).

Edited by houstontexasjack
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On 3/19/2021 at 10:50 PM, MarathonMan said:

Heard from a friend who works for Midtown Management District that the Fitzroy/Kimpton tower will be delayed again. . . until 2022.  Anyone else hear anything to that effect?

I just got a marketing e-mail from them (today) stating the estimated closing date for the condos would be late 2023. Of course it has a little asterisk next to it confirming they are full of crap 😆

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On 3/19/2021 at 10:50 PM, MarathonMan said:

Heard from a friend who works for Midtown Management District that the Fitzroy/Kimpton tower will be delayed again. . . until 2022.  Anyone else hear anything to that effect?

Yes, it is delayed.

There has been no new progressive set of construction documents issued (that I'm aware of).  The latest set are Design Development, so they still have at least issue for permit drawings and construction drawing to produce.  I know they were shopping at least three general contractors in October/November of last year and then everything went silent.

 

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  • 3 weeks later...

Yes, there appears to be a ton of activity going on behind the scenes right now. A lot of capital had been tied up because of the uncertainty of the pandemic but there is a light at the end of the tunnel now and real estate is an investment type people have been waiting to invest in. Especially before the interest rates tick back up.

We may see a flurry of new project proposals this summer. Let's see how many break ground!

Edited by shasta
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18 minutes ago, houstontexasjack said:

It looks like Caydon’s properties in Midtown were sold at a foreclosure sale earlier this month. From what I can tell, this is about everything Caydon owned north of Drewery Place.

Edit: To clarify, the tract on which Fitzroy residences was to be built was sold at foreclosure. I’m not sure if Caydon gave up the plans and designs to the lender separately. @hindesky’s post references an April 9, 2021 date, so it’s *possible* (although I think unlikeky) the foreclosure buyer is looking to move forward with construction.

18 minutes ago, houstontexasjack said:

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14 minutes ago, hindesky said:

Caydon is selling their Midtown Drewery Place apartments.

https://realtynewsreport.com/caydon-selling-drewery-place-apartment-tower-in-midtown/

I'm betting it goes for around $120-$145 million. Also it seems like they're still going foward with the rest of the development 

Quote

Having completed the Drewery Place  tower, Caydon’s next Midtown project is Fitzroy, a 32-story tower pairing 191 condominiums with a 190-room boutique hotel operated by Kimpton Hotels and Restaurants.

Caydon is expect to expected to break ground in mid-2021 and complete the Fitzroy condo tower in late 2023.The 558,000 SF tower will be the second phase of the 2.5 million SF mixed-use district Caydon intends for three city blocks – about 3.5 acres bordered by Main, McGowen, Fannin and Tuam, and adjacent to Midtown Park.

 

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1 minute ago, TheSirDingle said:

I'm betting it goes for around $120-$145 million. Also it seems like they're still going foward with the rest of the development 

 

Does Biv really know something or is he just regurgitating old information?

 

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50 minutes ago, hindesky said:

Caydon is selling their Midtown Drewery Place apartments.

https://realtynewsreport.com/caydon-selling-drewery-place-apartment-tower-in-midtown/

I thought this is a typical business model for most residential real estate firms. Buy land, build, lease out the retail to anchor tenant, get a certain % of rooms leased, and then sell. So not really big news? 

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3 minutes ago, X.R. said:

I thought this is a typical business model for most residential real estate firms. Buy land, build, lease out the retail to anchor tenant, get a certain % of rooms leased, and then sell. So not really big news? 

Combined with the foreclosure on the rest of their property though?

 

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I’m completely confused.  Seems as though Caydon is dumping and running, but the Realty News Report article says they’re about to start the Fitzroy?  Really?  After foreclosure?  All of the on-site promotional banners for Fitzroy/Kimpton came down last weekend (replaced by graffiti - yay!) and everything online indicates the development is defunct.  Unless I’m missing something, whoever researched this article did a horrible job fact-checking.

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1 hour ago, MarathonMan said:

I’m completely confused.  Seems as though Caydon is dumping and running, but the Realty News Report article says they’re about to start the Fitzroy?  Really?  After foreclosure?  All of the on-site promotional banners for Fitzroy/Kimpton came down last weekend (replaced by graffiti - yay!) and everything online indicates the development is defunct.  Unless I’m missing something, whoever researched this article did a horrible job fact-checking.

Yap most places are saying they dumped/sold out.
one example: https://www.buzzbuzzhome.com/us/fitzroy-residences

To bad, this could of been a great development, guess you shouldn't default on a loan when trying to build a mixed-used development. 

Also does anyone have word on who owns this now, and what plans they have for it.

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He expanded the boundaries of highrise development in Midtown and future development will be made easier because of it. What he was trying to do - build a bunch of towers between Main and Fannin as if it were Post Oak Boulevard, in an area where solitary figures roam carrying paper bags of who-knows-what - would have been close to a miracle. Doing this during the pandemic when virtually every urban highrise is becoming a distressed property no matter how well located proved to be impossible.

 

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12 hours ago, MarathonMan said:

I’m completely confused.  Seems as though Caydon is dumping and running, but the Realty News Report article says they’re about to start the Fitzroy?  Really?  After foreclosure?  All of the on-site promotional banners for Fitzroy/Kimpton came down last weekend (replaced by graffiti - yay!) and everything online indicates the development is defunct.  Unless I’m missing something, whoever researched this article did a horrible job fact-checking.

Sadly, that's a pretty safe assumption when it comes to Houston journalists.

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1 hour ago, H-Town Man said:

He expanded the boundaries of highrise development in Midtown and future development will be made easier because of it. What he was trying to do - build a bunch of towers between Main and Fannin as if it were Post Oak Boulevard, in an area where solitary figures roam carrying paper bags of who-knows-what - would have been close to a miracle. Doing this during the pandemic when virtually every urban highrise is becoming a distressed property no matter how well located proved to be impossible.

 

I would actually argue that they made it harder for future highrise development in Midtown because The Drewery's rents are so low. Their effective rents are low enough that developers would struggle to make a podium development underwrite, much less a high rise. Also, they haven't been able to get past 65% occupied even with their low rents. 

The Travis is a much better story for Midtown.

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Its kind of sad if they really are getting out of Midtown, and it seems they are, because they made it to the end of COVID but still succumb to it. I'm seeing this with some of my other clients' industries, businesses that were sighing in relief in March only to find out in April that their runway was much, much shorter than they realized and had to close shop b/c demand is returning slower than some hoped. 

Given what Rice is doing in Midtown and what that will potentially bring in terms of demand for housing and attracting individuals to work there who have higher earning potential, its unfortunate that their timelines didn't match up. 

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5 hours ago, SMU1213 said:

I would actually argue that they made it harder for future highrise development in Midtown because The Drewery's rents are so low. Their effective rents are low enough that developers would struggle to make a podium development underwrite, much less a high rise. Also, they haven't been able to get past 65% occupied even with their low rents. 

The Travis is a much better story for Midtown.

Their rents are probably low due to the pandemic and will go up afterwards, if it ever ends. 

 

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I guess it is good they got one tower up before bailing. Maybe one day Midtown will fill in like we all expect but it is slowing pushed further to the future. Aside from COVID, I am sure the prices of wood and steel have made it that much more difficult. You will see more and more projects get scaled back, delayed, or cancelled (see McNair).

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On 5/7/2021 at 4:08 PM, H-Town Man said:

Their rents are probably low due to the pandemic and will go up afterwards, if it ever ends. 

 

Yes, but they are significantly lower than most of the other highrises that are going through the same pandemic. 

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9 minutes ago, SMU1213 said:

Yes, but they are significantly lower than most of the other highrises that are going through the same pandemic. 

This may be due to their being on the "frontier" in Midtown, east of Main and north of most of the other new multi-family development there. But they have pushed the frontier outwards, benefitting other buildings like the Travis.

 

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On 5/7/2021 at 11:02 AM, SMU1213 said:

I would actually argue that they made it harder for future highrise development in Midtown because The Drewery's rents are so low. Their effective rents are low enough that developers would struggle to make a podium development underwrite, much less a high rise. Also, they haven't been able to get past 65% occupied even with their low rents. 

The Travis is a much better story for Midtown.

Judging by the available units shown on their website, it looks like they are at least 75% occupied.

The Travis appears to be only about 62.5% occupied.

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  • The title was changed to Drewery Place: Multifamily High-Rise at 2850 Fannin by Caydon
  • The title was changed to Drewery Place: Multifamily High-Rise At 2850 Fannin By Caydon

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