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GreenStreet: Mixed-Use Development At 1201 Fannin St.


MontroseNeighborhoodCafe

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Looks like they have added two new tenants... nothing exciting.

Yogurberry

Nail Trix

:mellow:

They have also added a few new pics on their website under Renderings.

Thanks for the info.

For those as clueless as me:

http://www.yogurberry.com/

Nail Trix produced several non conclusive results, but seems most likely to be a salon of some sort.

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This is kind of off subject, but I was thinking the other day about the parking lots on the east side of downtown near Toyota Center, GRB, and MMP. I presume that many of them are still parking lots because the land value is priced so high that it makes it hard for a developer to come in and build. So I guess my question would be why don't these people who own the parking lots, sell them to developers at a lower price, so something could get built, but they keep part ownership of the property to make up for the lower sell price? They may lose money on the sell, but they'll still be invested in the property. Instead of just trying to sell the property for a big upfront paycheck. I have no expertise in this matter, so I was kind of hoping somebody who does could maybe chime in here. Thanks everyone!!

Think about it from the owners' perspectives. The value of the raw land is based upon expected net cash flows from the highest and best use of improvements were they to be built within a short period of time from having sold to a suitable developer. The present value of that net cash flow is effectively discounted so that the land owner captures any surplus profits above the developer's minimum IRR.

So the land owner can either sell the land and take a lump of cash up front without taking on risks related to the development, or they can negotiate to contribute part of their land as equity, making them a limited partner, and negotiating terms such that the ultimate payoff from the development is equal in risk-adjusted present value terms to the price of the land. The land owner will not accept anything less than fair market value for the land regardless of how the deal is structured, and the developer will not accept terms requiring them to pay anything more. If either party to the negotiations is unsatisfied, the developer will have to look for alternate sites...and it's still a fairly competitive land market, so that's not too much of a problem.

The net effect is the trend we have now. Downtown grows at a healthy pace. Anything more that what we've got in the works would probably not be supported by market fundamentals, thereafter dooming our CBD to something utterly Dallas-like (i.e. Detroit's office vacancy in a sunbelt market). Architects and their afficianados seem to often think of downtown as merely a sculpture garden--and it is, I suppose, among other things--but who are the true artists if not they that employ building owners, which have employed developers, which have employed architects? You want to see lots developed? Support the Greater Houston Partnership's push to attract jobs, support any and all infrastructure projects throughout our region, support beautification efforts, pressure your elected officials to maintain our competitive advantages as a city especially where affordability is concerned.

Edited by TheNiche
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I second Niche's emotion....

Downtown is growing at a phenomenal rate considering the economic state of our country (you know that "R" word that G-dub is trying to avoid). As impressive as boomtowns like Miami are looking right now, the foreclosure police are already making them pay dearly for the new construction. Houston's growth pace, along with our constant economic malleability just show that the city is stable. I mean CRAP even LA's entertainment industry is in trouble with the Writers' strike. In all honesty, Houston, DC, and Chicago are probably the most economically stables cities in the US.

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Well, Miami is basically just known as an entertainment and florida is basically known as God's Waiting room for the retirement community that is there. On the other extreme, its also a major tourist/entertainment destination. When people start getting a bit tight with funds, travel is usually the first to take a hit.

Remember, during 9/11, every entertainment/tourist town took a major hit while Houston kept chugging along.

As far as Hollywood goes, that's a totally different animal, so I won't even get into that one.

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http://www.chron.com/disp/story.mpl/nb/hei...ws/5476116.html

...the mixed-use, $170 million center expected for completion in October.

...is already about 65 percent leased...

The city of Houston and Harris County have provided, in total, $16 million to The Houston Pavilions for infrastructure improvements in the form of cash and future tax abatements.

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The article was an interesting read but why did it say it was being created over within seven city blocks? Maybe i misunderstood the way it read.

Edited by C2H
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MUCH MUCH BETTER!!!!!

I'm excited about the cool skywalks, but the most important news is the tenants... this project is shaping up to be very family-friendly with a Lucky Strike bowling alley, upscale dining establishments, the House of Blues, Books-a-Million, and trendy fashion stores... tres chic!

This definitely has success potential now. Granted the DT residential population is still very low, but this gives the 50,000 plus student population more alternatives than just the Galleria for some fun. A downtown Books-a-Million will be flooded b/c it's literally 5 minutes away from main campus, and 5 min walking distance from UHD. This project is set to hit right out of the park (Minute Maid park, lol)!

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A downtown Books-a-Million will be flooded b/c it's literally 5 minutes away from main campus, and 5 min walking distance from UHD

Not to mention a 10 minute rail ride from Rice, Baylor, UT/MD Anderson, TWU, Prairie View Nursing, A&M Health Science Center, HCC, and the rest of the universities in the Medical Center area.

According to www.TMC.edu, the Medical Center has 33,150 Full-time students and more than 75,000 part-time students.

Edited by Jax
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I am assuming the other 35% that is not leased is the office space. Sort of bitter-sweet. I would love to see more retailers come in other than the lunch crowd stuff.

No, I'm pretty sure the 65% figure was only relating to retail space.

EDIT: I just looked at the article again. One can't actually be certain what the writer meant to say. It reads as though the overall project, retail and office space is 65% leased. Who knows? (Typical incompetent journalist, sorry). However, I see no reason at all to think that the retail is 100% leased at this point.

Edited by Houston19514
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I'm not sure of the percentages, but I'd be VERY happy if the office space was almost fully leased out, that would almost immediately help out not only the eating establishments in HP, but perhaps give Josephine's and that new bar "Reserve" a kick up in business.

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Yep. I've been hoping that the concrete textured exterior is not the final finish, but it looks like it is. I love the project but the exterior materials, in my opinon, leave something to be desired.

I am sure once the project is complete that it will look great from the outside... I am not worried.

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In driving home tonight, The Reserve had a nice crowd, so I am certain that once the Pavilions opens, it should be in good shape. In addition, from where I work, I have a birds eye view of the construction and they have delivered the windows and glass, so I think the exterior is going to be a mosaic of the prefab/stucco work and windows.

I think this HP has a great deal of potential if it can get some more high end retail, originally they had BCBG on the list and if that is true, they could continue to bring some high end retailors that will be a good draw for tourist convention goers and locals that want to go shopping without going to the Galleria.

However, I am not certain if you remember but the old Sachowitz building, which is a beautiful piece of work next door to HP and Macy's, has just been sold to an institutional investor and it use to be a Department store, if another department store purchases the old sachowitz building or buys one of the surface lot, then you will have a critical mass in Downtown Houston shopping. Ideally, a Bloomingdale's in DT houston would be fantastic from a strategic perspective. Macy's would own the two largest retail spaces in DT Houston and own the retail market therefore, it could make it a critical mass.

In addition with the great economy of Houston it would be an interesting strategy that could be beneficial to Macy's because so far Houston's economy in the nation seems to be holding up strong against the recession.

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