LBC2HTX

On 3/8/2018 at 7:50 PM, Urbannizer said:

It's interesting to note that the surface lot across from this just went on the market. 

 

http://www.loopnet.com/Listing/SEC-WESLAYAN-W-ALABAMA-Houston-TX/11813599/

 

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A parcel of land owned by Dallas-based AT&T (NYSE: T) in River Oaks has hit the market – again.

The 4.6-acre parcel at the intersection of West Alabama Street and Weslayan Street, which is currently being used as a surface parking lot for AT&T employees, is on the market, according to documents obtained by the Houston Business Journal. Cushman & Wakefield's Jim Foreman, who's marketing the land alongside David Chuoke, said AT&T listed the land about five days ago.

 

"They want to monetize the site," Foreman said.

AT&T is currently being used as overflow parking for its 12-story property at 3303 Weslayan, which is formerly known as the Southwestern Bell Building. AT&T has already re-platted the land for commercial development, Foreman said.

This isn't AT&T's first go-around at monetizing that site, though. Foreman marketed the land for AT&T back in 2015, too.

"The market wasn't right for it two years ago," he said. "We're in a much better market today with good fundamentals."

Though the land's only been listed for less than a week, Foreman said interest is strong among different levels of investors. Cushman & Wakefield isn't listing the land with an asking price – they're going to let the market determine the value of the land, Foreman said – and offers are encouraged to be submitted by mid-April.

The land sits across the street from two notable developments. To the parcel's north side is PMRG's 2929 Weslayan: the city's tallest residential tower outside of downtown. The high rise delivered in 2016, stands at 40 stories and won an HBJ 2017 Landmark Award.

"I'd anticipate they'd hopefully have an interest," Foreman said, when asked whether PMRG has plans to submit an offer.

The office building at 3000 Weslayan sits at the parcel's east side. The Class B building was recently acquired by Houston-based Morningside Capital, which eventually plans to redevelop the building into some sort of residential development. When asked what kind of development that land would support, Morningside's co-founder, Chris Calato, suggested more luxury residential for the intersection.

"You don’t have to have a great imagination to see what could go there. You could look right across the street," he said, referring to PMRG's high-rise project.

https://www.bizjournals.com/houston/news/2018/03/15/exclusive-storied-at-t-parcel-near-river-oaks-hits.html

https://www.bizjournals.com/houston/news/2018/03/14/developer-mulls-plans-for-flipping-river-oaks.html

Quote

The developer who recently acquired a Class B office building near River Oaks is mulling redeveloping the property into a high-rise residential project, he told the Houston Business Journal.

In November, Houston-based Morningside Capital closed on 3000 Weslayan, a six-story, 81,505-square-foot office building across the street from PM Realty Group's 2929 Weslayan, Houston's tallest residential tower outside of downtown. When asked about the company's redevelopment plans for the office building, Morningside co-founder Chris Calato suggested another project in the vein of PMRG's luxury development.

 

"You don’t have to have a great imagination to see what could go there," Calato said. "You could look right across the street."

Calato said that, at the earliest, Morningside Capital would look at redeveloping the property in late 2019 or early 2020. The office building is at least 90 percent occupied and tenants have a redevelopment clause in their lease that allows Morningside to cancel any office lease with 12 months notice.

"I think a high rise in that location could work," Calato said. "The bottom line, is you can walk to (Central Market) and Costco, you have tremendous amenities, and you have tremendous wealth in those residential neighborhoods that could opt for easy living in a high-rise as opposed to a 5,000-square-foot house in River Oaks."

Calato didn't disclose the purchase price of the building. The building was appraised at $8.3 million in 2017 by the Harris County Appraisal District.

Morningside Capital bought the property from Houston-based McCord Development. McCord Development owns and operates Generation Park in northeast Houston.

Is the discontent with the parking podiums themselves or the design of the podium? If the latter, then I disagree. In the case of the Arabella, I wonder if they will be able to develop something on the plot where the sales trailer currently sits on San Felipe between the Arabella and target (that would not be an option if that land was instead devoted to the building's parking). 

6 minutes ago, gene said:

I wonder if West Elm is truly planning to move to this location as shown in the illustration above and possibly soon since they highland village location closed!? If that is the case, I hope that the rest of this development continues to get more places i will actually shop and eat! crossing fingers..........! 

Yeah i'm upset about the WE closing in HV. However, if this means that this project is underway then i'll take it. I havent been to uptown park in over a decade. 

3 hours ago, swtsig said:

of course they're marketing angles, they (the developers) are vying for tenants in a competitive market. it's also absolutely indicative of weak demand - in strong markets developers curtail free rent significantly, if they offer it at all. not sure how offering free rent makes the remaining months more expensive either - you're literally paying less over the same term.

I think you missed his point. He meant that its not really "free rent", that's just the rent and leasing agents are throwing in "free rent" to make it seem like people are getting a deal. 

The downtown market is comprised of top-of-the-line and luxury units, as reflected in Downtown's average rent being substantially higher than elsewhere in Houston. When a glut of brand-new luxury/high-end units are all put on the market within a short period of time (downtown has dramatically changed over the past 3 years or so), they're going to throw in incentives to increase occupancy. Because these are all luxury buildings they are limited in how much they can lower their rent without jeopardizing the integrity/reputation of the building.

1 hour ago, Texasota said:

I agree with that; I just don't agree with your assessment that Lucienne is part of the problem. Part of that might just be my hope that Lucienne will actually be a good restaurant, rather than *just* a hotel restaurant. Oxbow 7 is open nights a week, and I think the food is mediocre and overpriced. That's one thing Downtown does not need any more of. 

Might have to do with the fact that Caswell is no longer running Oxbow 7, or maybe he wasn't getting the job done and got the axe, with no improvement since. 

52 minutes ago, 102IAHexpress said:

From Nancy's article yesterday:

 

https://www.chron.com/business/real-estate/article/Short-term-renters-moving-out-of-apartments-six-12724143.php

 

Wow, I didn't know residential demand was that poor in downtown. Hopefully it picks up soon. 

I wouldn't be too concerned. It's been that way for over a year now throughout Houston. When Market Square Tower opened it was offering a really sweet deal of 1/2 rent for a year with a two year lease (prorated). Broadstone Skyline was also offering 2 months free when it opened about a year ago. Similar deals were being offered in Uptown. I wouldn't say residential demand is poor, there's just a lot of options for renters right now and leasing agents are under pressure to get occupancy up on new builds. 

36 minutes ago, gene said:

Urbannizer! Thank you for the update...I will admit the wording of that attachment left me confused and with a headache haha! Does it all mean that the Cosmopolitan's case has basically been dismissed and the new developers can proceed on the adjacent land? Thank you!!! 

My understanding was that the Association (Cosmopolitan) was appealing the district court's ruling to not dismiss the case. It appealed all the way up to the Supreme Court of Texas, which rejected its appeal. So now the case (which is the REIT/Developer suing for declaratory judgement on the agreement between the Developer and Cosmopolitan being valid and enforceable) will proceed. The Developer brought the case (seeking declaratory judgement)  to avoid the risk of a lawsuit from the Cosmopolitan once construction has started (which would be more costly, timely and give Cosmopolitan more leverage in the matter). Basically the Cosmo/Association have been huge dicks and threatening a lawsuit, even though a second development was in the works the entire time. 

Solid design. Looks like that's at the corner of Buffalo Speedway and W Alabama. Maybe that's a parking garage north west side? Given how large this property is, there's definitely more to it than this. The shaded structures to the south are probably TBD. 

Amazing! This development will take midtown to the next level. 

Really don’t understand all the tears over the W’s height. It’s on the eastern edge of downtown so it’ll be seen from the east regardless of how tall it is. Moreover, a taller W at this site will just have more guests staring out of their room to the shitty industrial side of Houston. 

So the site on Westcreek across from the Wilshire/Sky House and Arabella is a paved over parking lot for Harris County Public Health. Does anyone have any intel on if the Gables development and the planned office building and other residential development are still in the works?

Also, the Wilshire is wrapping up and the plot to the south of it where the sales building and and equipment has been stored will presumably clear out soon. Is there still a hotel planned for it?

Then there's also ROD Phase II which is a whole other animal.