The Astoria: Condominium High-Rise At 1405 Post Oak Blvd.

[livincinco]

Lol I like how McDonald's gets more room than a highrise.

They have better lawyers.

[Houston19514]

They have more money.

[swtsig]

Almost 60% sold.

[Urbannizer]

Astoria will rise 28 floors, at a height of 322' ft.

 

http://houstoneb5.com/featuredproject_features.html

[SkylineView]

2013 05 04 Weekly update:  Concrete for the McD's.

 

[fatesdisastr]

Is it just me or is that a heck of a lot of concrete for a McDonalds? This really puts into perspective how much space the Astoria is working with, which isn't much compared to their neighbor.

[Texasota]

Yeah this is just weird, though very Houstonian. Integrating the mcdonalds into the base of the tower would have made more sense. I wonder if Astoria didnt want to deal with retail, or if the rent they would ask would have been to high? I would have thought that property values in that area would have made wasting a lot on a drive-through mcdonalds less than desirable

[diggity]

Yeah this is just weird, though very Houstonian. Integrating the mcdonalds into the base of the tower would have made more sense. I wonder if Astoria didnt want to deal with retail, or if the rent they would ask would have been to high? I would have thought that property values in that area would have made wasting a lot on a drive-through mcdonalds less than desirable

 

I would imagine it was McDonald's that didn't want to be in the tower.  They need parking and a drive-thru for the heavy lunch crowds in the area.

 

The land is valuable, but if anyone has the money to afford expensive land, it's McDonald's.

 

The foorprint for the Astoria doesn't have to be that large.

[tangledwoods]

I have a dumb question, it seems that Astoria and the McDonald's are sharing a pretty small site.  Just south of this site are some crappy 2 story apartments.  Why isn't that parcel being redeveloped.... or is there a plan in the works that we don't know about.

[diggity]

I have a dumb question, it seems that Astoria and the McDonald's are sharing a pretty small site.  Just south of this site are some crappy 2 story apartments.  Why isn't that parcel being redeveloped.... or is there a plan in the works that we don't know about.

 

Don't underestimate the value of having a Post Oak address and frontage.

 

Also, that other parcel looks like more land than they would possibly need and I doubt the owner would subdivide.  They may be old "crappy" apartments but if they are close to fully occupied and cash flowing well, I doubt the owner is in a big hurry to sell.  

McDonalds, on the other hand, realized they could build a modern store on less land and make a bundle on the sale of the rest of the lot.  It was win-win for them.

[Fortune]

I have a dumb question, it seems that Astoria and the McDonald's are sharing a pretty small site. Just south of this site are some crappy 2 story apartments. Why isn't that parcel being redeveloped.... or is there a plan in the works that we don't know about.

Interestingly enough that crappy two story apartment building is for sale and has been for quite a while.

[KinkaidAlum]

Let's cut to the chase; the only reason this tower MIGHT be built is due to foreign buyers "investing" in this property and getting into the USA.

 

No sane resident of the USA is going to move into a Randall Davis building that shares a lot with a drive-thru McDonald's, especially at his prices.

 

I think we're going to see Houston's first "Miami" condo building. 100% sold but 30% occupied.

[Fortune]

Let's cut to the chase; the only reason this tower MIGHT be built is due to foreign buyers "investing" in this property and getting into the USA.

No sane resident of the USA is going to move into a Randall Davis building that shares a lot with a drive-thru McDonald's, especially at his prices.

I think we're going to see Houston's first "Miami" condo building. 100% sold but 30% occupied.

If it is built I'm sure it will be occupied it may not be owner occupied but it will be occupied.

[diggity]

Let's cut to the chase; the only reason this tower MIGHT be built is due to foreign buyers "investing" in this property and getting into the USA.

 

No sane resident of the USA is going to move into a Randall Davis building that shares a lot with a drive-thru McDonald's, especially at his prices.

 

I think we're going to see Houston's first "Miami" condo building. 100% sold but 30% occupied.

 

I think you're attaching way too much importance to what is next door.  It's not like they will be fighting with McDonald's for parking sports.

 

People are going to buy for the proximity to the Galleria and surrounding area.

 

Any if you think this will be one of the first condos in the area that has a ton of foreign owners, you haven't been paying attention.

[swtsig]

I think you're attaching way too much importance to what is next door.  It's not like they will be fighting with McDonald's for parking sports.

 

People are going to buy for the proximity to the Galleria and surrounding area.

 

Any if you think this will be one of the first condos in the area that has a ton of foreign owners, you haven't been paying attention.

i was going to say the exact same thing... i'd venture to guess the majority of condos in this area have a decent percentage of foreign national ownership, many of whom are not there a lot of the time.

[JWW]

Interestingly enough that crappy two story apartment building is for sale and has been for quite a while.

 

Someone know the listing price?

 

Let's cut to the chase; the only reason this tower MIGHT be built is due to foreign buyers "investing" in this property and getting into the USA.

 

No sane resident of the USA is going to move into a Randall Davis building that shares a lot with a drive-thru McDonald's, especially at his prices.

 

I think we're going to see Houston's first "Miami" condo building. 100% sold but 30% occupied.

 

Kinkaid Alum is not too prescient...and not familiar with this project's market.

 

I think you're attaching way too much importance to what is next door.  It's not like they will be fighting with McDonald's for parking sports.

 

People are going to buy for the proximity to the Galleria and surrounding area.

 

Any if you think this will be one of the first condos in the area that has a ton of foreign owners, you haven't been paying attention.

 

Very well put, each of your points.

[KinkaidAlum]

Ha.

 

The changes in the EB-5 visa program in 2011 have changed the game. The Astoria is the first Houston project to actively seek this type of foreign investment.

 

Will it work?

 

Short term- yes, the building will likely be built on the backs of people "investing" in job creation by buying units and allowing for construction to commence.

 

Long term- much riskier. The Houston high rise market is a tough nut to crack and this building's price points (starting at $1 million) are quite high, especially since the main competition all offer more bang for the buck with properties, sprawling yards, dog runs, tennis courts, in ground pools, and more whereas this one will share a small lot with a fast food joint. 

 

 

[Fortune]

Someone know the listing price?

Not sure hat it's going for but here is the link to the listing.

http://www.commgate.com/index.cfm?fuseaction=property.detailFS&ln=172705

[Houston19514]

Ha.

The changes in the EB-5 visa program in 2011 have changed the game. The Astoria is the first Houston project to actively seek this type of foreign investment.

Will it work?

Short term- yes, the building will likely be built on the backs of people "investing" in job creation by buying units and allowing for construction to commence.

Long term- much riskier. The Houston high rise market is a tough nut to crack and this building's price points (starting at $1 million) are quite high, especially since the main competition all offer more bang for the buck with properties, sprawling yards, dog runs, tennis courts, in ground pools, and more whereas this one will share a small lot with a fast food joint.

But they don't start at $1 million. The unit pricing starts in the $590s.

Edited May 8, 2013 by Houston19514

[swtsig]

Ha.

 

The changes in the EB-5 visa program in 2011 have changed the game. The Astoria is the first Houston project to actively seek this type of foreign investment.

 

Will it work?

 

Short term- yes, the building will likely be built on the backs of people "investing" in job creation by buying units and allowing for construction to commence.

 

Long term- much riskier. The Houston high rise market is a tough nut to crack and this building's price points (starting at $1 million) are quite high, especially since the main competition all offer more bang for the buck with properties, sprawling yards, dog runs, tennis courts, in ground pools, and more whereas this one will share a small lot with a fast food joint. 

while what you said is likely true i've heard that Astoria may actually be restructuring its loan to lean less heavily on the visa program due to higher than anticipated local demand.

[Houston19514]

Ha.

 

The changes in the EB-5 visa program in 2011 have changed the game. The Astoria is the first Houston project to actively seek this type of foreign investment.

 

Will it work?

 

Short term- yes, the building will likely be built on the backs of people "investing" in job creation by buying units and allowing for construction to commence.

 

Long term- much riskier. The Houston high rise market is a tough nut to crack and this building's price points (starting at $1 million) are quite high, especially since the main competition all offer more bang for the buck with properties, sprawling yards, dog runs, tennis courts, in ground pools, and more whereas this one will share a small lot with a fast food joint. 

 

The EB-5 program is not based on getting foreign investors to buy condo units.  It is based on getting foreign investors to invest in the partnership that will build/develop the building.  Minimum investment:  $1 Million. That is probably the source of your confusion about the starting prices of the condo units.

 

Most high-rise condos in Houston do not offer all the amenities you list above.  All have swimming pools.   Few have tennis courts. The Astoria appears to be quite competitve with the other offerings in town (e.g., 2727 Kirby, Cosmpolitan...)

[JWW]

But they don't start at $1 million. The unit pricing starts in the $590s.

 

 

while what you said is likely true i've heard that Astoria may actually be restructuring its loan to lean less heavily on the visa program due to higher than anticipated local demand.

 

 

The EB-5 program is not based on getting foreign investors to buy condo units.  It is based on getting foreign investors to invest in the partnership that will build/develop the building.  Minimum investment:  $1 Million. That is probably the source of your confusion about the starting prices of the condo units.

 

Most high-rise condos in Houston do not offer all the amenities you list above.  All have swimming pools.   Few have tennis courts. The Astoria appears to be quite competitve with the other offerings in town (e.g., 2727 Kirby, Cosmpolitan...)

 

All very well put.

[KinkaidAlum]

The Huntingdon, The Spires, Four Leaf Towers, Montebello, Villa d'Este, Woodway Place, The Parklane, Hermann Towers, Bayou Bend, The Bristol, The Houstonian, Regency House, the St Clair, and the St James all have tennis courts. Most of them have resort style pools too. More than half of those listed have their own grounds with things like dog runs. The buildings that don't have large grounds tend to be located next to parks (Hermann, Tanglewood, Memorial) and none of them share property with a drive-thru fast food joint.

 

 

 

 

[fernz]

The best comp is the Cosmopolitan across the street. As ugly as it is, it sold quite well. People with money who are willing to put up with Galleria area traffic just for the perceived prestige are not necessarily rational buyers.

[Houston19514]

The Huntingdon, The Spires, Four Leaf Towers, Montebello, Villa d'Este, Woodway Place, The Parklane, Hermann Towers, Bayou Bend, The Bristol, The Houstonian, Regency House, the St Clair, and the St James all have tennis courts. Most of them have resort style pools too. More than half of those listed have their own grounds with things like dog runs. The buildings that don't have large grounds tend to be located next to parks (Hermann, Tanglewood, Memorial) and none of them share property with a drive-thru fast food joint.

 

As I said, most Houston high-rise condo buildings do not have tennis courts and even fewer have sprawling yards and dog runs.   Thanks for confirming. 

 

All evidence says that the Astoria will indeed offer condo units that are competitive in the market.

 

You apparently have some problem with Randall Davis and his developments, so we'll mark you down as not interested in purchasing a unit at The Astoria.  

[jgriff]

The best comp is the Cosmopolitan across the street. As ugly as it is, it sold quite well. People with money who are willing to put up with Galleria area traffic just for the perceived prestige are not necessarily rational buyers.

 

Some people think differently and have different priorities than you. That does not make them irrational.

[JWW]

I think 11 replies to refute Kinkaid's assertions and predictions are enough....

 

Does anyone see much of a market for mid/high rise condominium living off Post Oak or nearby at a lower density/higher price point than Astoria?  (2727, Monetebello, Huntingdon).   

[SkylineView]

2013 05 11:  Weekly update of McD's.

 

[brijonmang]

2013 05 11:  Weekly update of McD's.

 

 

That is one SWEET albedo roof! 

[diggity]

The Huntingdon, The Spires, Four Leaf Towers, Montebello, Villa d'Este, Woodway Place, The Parklane, Hermann Towers, Bayou Bend, The Bristol, The Houstonian, Regency House, the St Clair, and the St James all have tennis courts. Most of them have resort style pools too. More than half of those listed have their own grounds with things like dog runs. The buildings that don't have large grounds tend to be located next to parks (Hermann, Tanglewood, Memorial) and none of them share property with a drive-thru fast food joint.

 

how many of these were built in the past 20 years?  I see two, and they are in the same development.

 

Current land costs make sprawling complexes in high density areas impractical.  The added expense for these tennis courts and dog runs is just not worth it from a cost/benefit standpoint.

Edited May 12, 2013 by diggity