CREguy13

Hopefully we get an update on this project in the coming weeks as the Marriott clears its staging area.  Whether its shelved, delayed, or moving forward, any update would be appreciated.

Although we haven't quite gotten to the big show, this city and all of its public-private partnerships has done an incredible job transforming this corner of the CBD.  I think it will show great to investors from around the country/world that will be here during the festivities.

@BTT what do you propose this site should be used for?  Stating City Center was a failure early on carries little weight when it is repeatedly used as an example of mega successful mixed-use projects.  Several people on this forum are in the industry, so be careful not to lose credibility early on.  There is nothing controversial about this article.

The last picture with Williams Tower in the distrance. Great shot.

1 hour ago, nativehoustonion said:

If you get a chance a have a Rossini Caffe in the lobby the best coffee you will ever have.  A very nice place for a business meeting. 

I couldn't agree more, have had a few coffee meetings at Rossini and the entire project was so well done and a huge compliment to the neighborhood.  I wouldn't be surprised if we saw more small boutique office buildings with the same high quality be proposed for the area.  SFP is wonderfully done.

This is such a beautiful building.  This will have such an effect on this side of downtown during the next building cycle.

16 hours ago, lockmat said:

 

Is there a lot of open office space downtown? Surely that doesn't mean they're building the tower, does it?

Highly unlikely.  They own both former Enron bulidings and lease about 1m SF in 1600 Smith and Two Allen.

The landlord of 723 Main had stopped all new leasing activity about a year ago.  They've been trying to restructure this for sometime now.  Really happy to see they found a great flag for the immediate area.

moved to corner of Welch and Revere.  Up to 9 floors from 6.  33 units

Imagine the continued effect as 609 Main delivers next door.

I'm very excited for this project, but I think I'm more excited for the 'Hines' effect that will take place within a few blocks radius of here.  There is a lot of surface lots nearby, that will likely be hitting the drawing boards soon if they haven't already.  A lot of national law firms and high-credit tenants are trading papers on this building right now, in addition to United Airlines and Kirkland.   These projects may be 5-7 years away, but the future is bright for downtown Houston.

3 hours ago, ClutchCity said:

 

Maybe since Oxy is leasing space in Greenway, once the industry gets back on better footing they might look to build their own HQ on the site! Of course it's wishful thinking, but it does seem, at least from this cycle, that energy companies like buildings built specifically for them. Maybe this experience will push them back to leasing space  though.

That would be great, but Oxy restructured their lease for a long term so who knows whether they would hold the land.  If Apache were to be acquired, Oxy may sell the land back to the original developer.  This wouldn't necessarily be bad for BLVD Place and the area.

Maybe this has already been reported here, but I was told today that of the 31,000 SF of retail space there will be two restaurants (one high-end and one more americana) and  a food market with about 18-20 different food vendors.  There will be some additional space, but these seem to be certain.  I think the food market will do really well in this area.  Construction start is 8/16 with estimated completion 4Q 2017.

Obviously the flag is still being determined, but I would assume Ritz & Residences is of the 3.  This seems to fit their profile and being connected to the Saks/Galleria Luxury wing makes sense.  It's amazing how much this W. Alabama/Sage intersection as changed over the past 3 years.

Does anyone know who owns this land? Rumor in Southampton/Upper Kirby is it's Midway and there's another City Centre heading our way but I find that hard to believe because someone on here would have found it and leaked it!

I'm not sure who bought the land, but Midway's intention is to make this another City Centre type development.  The office and residential component were just the first projects off the ground.  If you look at the site you'll notice that a lot of the land surrounding Kirby Grove is very old and tired and likely will become attractive investments soon.  Madison Place apartments just to the east of Levy Park are 40-50 years old and no longer work for this area of town.  If you look at an aerial view you will see there is a lot of potential in the bounded area of Richmond, Kirby, US 59, and Buffalo Speedway. 

This may have been already stated, but I would love to see them recreate the highline in NYC with the Pierce elevated.  I imagine if they got the right design team and engineers, and with a private backer like the Kinder foundation, it could turn out to be incredible.  I do support the continuity of downtown and midtown, but if you had a raised park that maybe came down to ground level to fuse into Buffalo Bayou park from the Post office and then elevate back up around the bend before coming back down to grade prior to 59.  That could be transformational for Houston's urban green space

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.

This has definitely been scrapped, but good to know that the owner/developer for that land has the appetite for a project of this scale.  With it's exposure to the new superblock park, proximity to MATCH and Mid Main, I'd think this will still be a high-profile development even though we may have missed it for this cycle.  I think we will see a lot fewer full-block apartment projects, and more high-rise/mid-rise developments that just take up a portion of the block (high-rise maybe full block).  Land prices are pretty level right now, but once these new residences move-in and all the amenities fill out, it will be harder to make a Pearl Midtown, or Camden Midtown economical unless you really jack up the rents.

They will not start construction on the office component until they secure a lead tenant that will lease 50% of the building.

Chase - 1,980,000 SF

Wells Fargo - 1,833,760 SF

 

The plot thickens...

 

(I'm not sure if that's TOTAL sf or just usable - My calculations were based on what I could measure on foot  )

Chase tower - 1,656,529

Wells Fargo Plaza - 1,721,242

Yes I am in the industry. And no offense, but there's always someone more knowledgeable, and not as knowledgeable, than each of us...just be smarter. And yes, Hines' new 609 Main client is a fraction of total square footage, but it's 'major' because it's a coup to have landed them to a spec building in a slowdown-- OVER A YEAR BEFORE COMPLETION! That's 'major!' And it's good you say you're not a Houston hater, although they do lurk about HAIF.

Well HTXUSA, I really enjoy your optimism then.  I am in the commercial office market, and the last 12 months have been rough and 2016 will be worse from a transaction standpoint.  Keep up the great attitude!  

Holy cow. Are new AA buildings really commanding that kind of rent downtown? In the current environment, why would anyone pay $60/ft in Houston?

On the top floors of this project, you bet.  This is going to be an incredible building, and the types of tenants that want to be here are the Kirkland Ellis's of the world - large national law firms that are used to paying these rents in SF, NYC, CHI, LA.  Also we will likely see Large Institutional Banks, Investment Banks, PE groups, and possibly your Lead Tenant energy company (although that may be a little ways off). 

Top two floors? I assume the price per square foot increases the higher the floor? I wonder how much they're paying...

It will be about $60.00/SF all-in

Wow.  Very interesting.

http://www.bizjournals.com/houston/morning_call/2015/12/exclusive-condominium-tower-planned-for-greater.html

The 35-story condo tower would have between 120 to 150 units, ranging in size from 1,200 square feet to 3,200 square feet and in price from $230,000 to $1.2 million. The units would feature naturally heated and cooled floors and high-end finishes.

“We see an opportunity for condos in Houston,” Trujillo said. “The younger generation isn’t looking for the white picket fence in the suburbs anymore.”

Checked the webcam and this building is already gone.  That was fast.