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Drewery Place: Multifamily High-Rise At 2850 Fannin St.


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http://caydon.com.au/portfolio-newsletter-overview-from-joe-russo/

 

Further exciting news, Caydon is expanding to International markets. I am pleased to have purchased a site in Houston, Texas, over the Christmas break to develop a 24 level development. The site was a no brainer - great location close to amenity, transport and infrastructure. We are working with some of America’s best architects to ensure the renowned Caydon quality is carried over to the US, we anticipate construction will commence later this year.

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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.

A good spot if they are tearing down parking lot and old buildings might be the blocks between Anita, Rosaile, Milam, and Main or Main, Anita, Drew, and Fannin.  There's still plenty of spots in midtown, but two vacant blocks do seem to be in short supply 

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45 minutes ago, Triton said:

 

Sounds right. We've been hearing rumors about these lots for years.

 

I don't believe this "sounds right"...

 

I would imagine it would be much closer to the light right and ground floor retail.

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3 hours ago, Avossos said:

 

I don't believe this "sounds right"...

 

I would imagine it would be much closer to the light right and ground floor retail.

 

My money goes on some location around Sears or one of the W Gray lots.. Let's see where it ends up!

 

Edit: Perhaps Alexan sold their site. We had heard rumors the gas station would be torn down and that an 11 story apartment complex was going up across the street from the old Central Bank Building. It's been fenced up ever since that rumor came out.

Edited by Triton
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I hope they wait to knock any buildings down until this project is a firm go with all financing.  The project sounds great, but seems a bit ambitious in the current market, so would hate to have another empty lot along the rail line if it fails through.   

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well the link above specifically mentions that the project is being timed to coincide with the lull in multifamily deliveries anticipated to occur in 2017 and 2018 so it sounds like they understand the market at least somewhat well. be curious to see if they carry through with it - it would be great to get some new perspective on development here.

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1 hour ago, corbs315 said:

See page 11 of this newletter; appears to be next to the superblock (and only minutes away from the Medical Precinct!):

 

http://caydon.com.au/wp-content/uploads/2016/03/COR084-Portfolio-Newsletter-March-2016_DIGITAL_2.pdf?utm_campaign=CAY-General&utm_source=Caydon-EDM&utm_medium=Button&utm_content=View-Full-Newsletter_March-2016-Portfolio-Newsletter

 

Edit:  Between Art Bar and Greensheet along Main.

 

 

Via Streetview:

26175594524_63987e3aa0_b.jpg

 

26175594394_0c90dc1024_h.jpg

 

26756143456_e0025afde3_h.jpg

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8 minutes ago, Montrose1100 said:

600 units on one of those blocks with a Piazza? Over exaggeration of the word or a very tall tower. 

 

My thoughts exactly.. Even if there wasn't a piazza on the same block, 600 units is way more than any other single block development I can think of.. The design/layout of the site should be very interesting. Maybe the piazza would be tucked underneath an elevated structure?

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"Caydon's experience in building successful apartment developments

in strategic locations in Melbourne makes them the ideal developer

for these projects."

 

Ummm... I guess. Kind of a strange sentence. Hope we're not being played like those three buildings in south downtown, Sky, Rise, and Edge, or whatever they were. Huey, Duey, and Louie.

 

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1 hour ago, H-Town Man said:

 

No one ever said "any." But it makes it less than what it could be, especially within 3-4 blocks of the freeway.

 

You're right. Planning to build 1000 units on 1.5 blocks is definitely less than it could be. Where's the rolleyes icon?

 

The tallest residential tower in Houston (not even finished yet), Market Square Tower, it's 40 stories and 'only' has 463 units http://www.bizjournals.com/houston/news/2014/07/16/new-details-revealed-in-market-square-tower.html true it's on half a block, but my point stands, you'd have to have something of the similar height to market square tower over 3x the land area. And you're saying that it's less than it could be?

 

as I said, rolleyes. Like really, it hurts they're rolling so hard.

 

honestly, what this developer is proposing, I'll believe it when the dirt starts turning, pierce elevated or no.

Edited by samagon
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18 hours ago, H-Town Man said:

"Caydon's experience in building successful apartment developments

in strategic locations in Melbourne makes them the ideal developer

for these projects."

 

Ummm... I guess. Kind of a strange sentence. Hope we're not being played like those three buildings in south downtown, Sky, Rise, and Edge, or whatever they were. Huey, Duey, and Louie.

 

 

So far I don't see any reason to believe it's not legit. The information we have is not from a developer website but from two independent news sources.

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We missed some other important quotes from the article! Self funding and commencing in November!:

 

In Houston, Mr Russo said, there are good profits to be made. "There's no zoning at all like there is in Melbourne. You go through a planning authority but it's pretty straightforward. I bought my first site in January and will commence construction in November."

 

"There are no off-the-plan sales. I will build the tower, lease it up and then sell the apartments to a pension fund in one line. For me it's like a working holiday."

 

He said the US developments were being funded from his own capital, plus mezzanine and senior debt. "I'm also looking at opportunities in Seattle."



Read more: http://www.afr.com/real-estate/joe-russo-buys-in-houston-as-melbourne-opportunities-run-dry-20160317-gnlfqw#ixzz47dPcQBid 
Follow us: @FinancialReview on Twitter | financialreview on Facebook

 

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6 hours ago, samagon said:

You're right. Planning to build 1000 units on 1.5 blocks is definitely less than it could be. Where's the rolleyes icon?

 

The tallest residential tower in Houston (not even finished yet), Market Square Tower, it's 40 stories and 'only' has 463 units http://www.bizjournals.com/houston/news/2014/07/16/new-details-revealed-in-market-square-tower.html true it's on half a block, but my point stands, you'd have to have something of the similar height to market square tower over 3x the land area. And you're saying that it's less than it could be?

 

as I said, rolleyes. Like really, it hurts they're rolling so hard.

 

honestly, what this developer is proposing, I'll believe it when the dirt starts turning, pierce elevated or no.

 

The "it" in my "less than what it could be" was overall Midtown development, not this particular development. The phrase "especially within 3-4 blocks of the freeway" should have made that clear, but you may have been already excitedly typing your reply before you read that part of the sentence.

 

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Here's another article. I'm starting to like this guy.

 

http://www.theaustralian.com.au/business/property/speed-key-to-driving-inner-city-success/story-fn9656lz-1226722231280

 

Russo says he doesn't take notice of cycles, noting inner-city areas are always in demand.

"I don't want to have to rely on up cycles to be able to trade. I like to always have something to sell, and those locations have proven to me that they sell whether the market is good or bad."

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Anyone taking that comment as anything more than your typical CEO rhetoric to appease investors obviously doesn't understand the importance of overly enthusiastic optimism. Of course he takes a look at cycles, of course he watches whether the market is good or bad; you don't become the CEO of a billion dollar company by ignoring basic market economics. He's gotta sell this new (international) market to investors, and on a surface-level it may look brash and spontaneous and sexy, but be realistic; we're smarter than this. 

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I drove by this site tonight on Fannin and saw some "Common Ground" signs (which are also visible in Street View).  Here is the flier for the listings:

 

https://www.dropbox.com/s/x63d4xugyutyaw6/Midtown.3.Acres.pdf?dl=0

 

Ybt4D4b.png

 

Undoubtedly the block on the lower left is the one indicated in the Caydon brochure, but from this it looks like that Art Supply building wasn't part of the deal?

 

 

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6 hours ago, OkieEric said:

I drove by this site tonight on Fannin and saw some "Common Ground" signs (which are also visible in Street View).  Here is the flier for the listings:

 

https://www.dropbox.com/s/x63d4xugyutyaw6/Midtown.3.Acres.pdf?dl=0

 

Ybt4D4b.png

 

Undoubtedly the block on the lower left is the one indicated in the Caydon brochure, but from this it looks like that Art Supply building wasn't part of the deal?

 

 

This is great info.  Thank you.  Seems that if he purchased all of this then building the density he describes can be done (especially if Drew street is abandoned.

 

poor Drew, his street is slowly being circumcised.  

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

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