Aris At Market Square: 32-Story High-Rise At 409 Travis St.

[Naviguessor]

These are marketing angles and has nothing to do with demand.  It is about value perception and Marketing.  "Free Rent" for a month usually means more expensive rent for the other 11 months.  Pretty sure I figured that out when I first started renting apartments. 

[102IAHexpress]

16 minutes ago, Naviguessor said:

These are marketing angles and has nothing to do with demand.  It is about value perception and Marketing.  "Free Rent" for a month usually means more expensive rent for the other 11 months.  Pretty sure I figured that out when I first started renting apartments. 

 

Again, from the article:

 

Quote

The urban core, however, which had a glut of units for lease pre-Harvey, still has a fair amount of vacancy.

 

Nancy is suggesting the deep discounts on inventory have to do with over supply and lack of demand in downtown. Are you saying she's wrong and your expertise which you gained after you first started renting apartments is correct?

[swtsig]

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.

[LBC2HTX]

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.

Edited March 6, 2018 by LBC2HTX
typo

[Houston19514]

It's not really indicative of weak demand so much as it is of (temporary) over supply. That might seem nitpicky but it's an important distinction.

 

As I reported in another thread a while back, downtown saw net apartment absorption during 2017 of 1093 units.  (Assuming 1.4 people per occupied apartment, downtown has been adding more than 125 people per month.)

Edited March 6, 2018 by Houston19514

[Nole23]

I've lived at 500 Crawford since 2016 and they have always offered 2 months free prorated and the complex is pretty full now.

[102IAHexpress]

Having to offer three months free rent was not forecasted in Aris' demand forecast when they developed this property. No developer plans on giving away three months free. The reality is demand in downtown is not what Aris projected. That's not good or bad, it's just the market reality. There's no need to go into contortions to say otherwise. Demand performance has just not delivered. According to HAIF, people should be flocking to be near the awesome downtown light rail and great restaurant scene in downtown. Or maybe not? Even putting aside the train of death and lack of restaurants, downtown developers were gifted a larger than anticipated potential tenant population caused by the largest rain even in US history and they were gifted oil making a faster than anticipated comeback yet... demand has been ehh. Lets see if a year from now this is still 'temporary' as some apologists would say. 

[Montrose1100]

Let’s keep it on topic and civil, thanks.

[BeerNut]

On 3/6/2018 at 9:06 PM, 102IAHexpress said:

Having to offer three months free rent was not forecasted in Aris' demand forecast when they developed this property. No developer plans on giving away three months free. The reality is demand in downtown is not what Aris projected. That's not good or bad, it's just the market reality. There's no need to go into contortions to say otherwise. Demand performance has just not delivered. According to HAIF, people should be flocking to be near the awesome downtown light rail and great restaurant scene in downtown. Or maybe not? Even putting aside the train of death and lack of restaurants, downtown developers were gifted a larger than anticipated potential tenant population caused by the largest rain even in US history and they were gifted oil making a faster than anticipated comeback yet... demand has been ehh. Lets see if a year from now this is still 'temporary' as some apologists would say. 

 

Actually it depends.  Spoke with gf that does apartment pricing and there are situations where a property developer would rather fill an apartment over current market occupancy rates to make a sell to investors. 

[CREguy13]

On 3/6/2018 at 9:06 PM, 102IAHexpress said:

Having to offer three months free rent was not forecasted in Aris' demand forecast when they developed this property. No developer plans on giving away three months free. The reality is demand in downtown is not what Aris projected. That's not good or bad, it's just the market reality. There's no need to go into contortions to say otherwise. Demand performance has just not delivered. According to HAIF, people should be flocking to be near the awesome downtown light rail and great restaurant scene in downtown. Or maybe not? Even putting aside the train of death and lack of restaurants, downtown developers were gifted a larger than anticipated potential tenant population caused by the largest rain even in US history and they were gifted oil making a faster than anticipated comeback yet... demand has been ehh. Lets see if a year from now this is still 'temporary' as some apologists would say. 

The below two quotes + article from today say otherwise:

 

"Less than a year after opening, Market Square Tower, Houston's tallest residential high-rise, is now over 90% leased."

 

"Despite many in Houston tightening their budgets, especially in the wake of Hurricane Harvey, interest in the property, where rent starts at $2,200/month, has been robust."

 

https://www.bisnow.com/houston/news/multifamily/market-square-hits-90-occupancy-amid-down-market-86022

[102IAHexpress]

18 hours ago, CREguy13 said:

The below two quotes + article from today say otherwise:

 

"Less than a year after opening, Market Square Tower, Houston's tallest residential high-rise, is now over 90% leased."

 

"Despite many in Houston tightening their budgets, especially in the wake of Hurricane Harvey, interest in the property, where rent starts at $2,200/month, has been robust."

 

https://www.bisnow.com/houston/news/multifamily/market-square-hits-90-occupancy-amid-down-market-86022

 

Edit: Just realized @CREguy13 quoted an article talking about Market Square Tower NOT Aris at Market Square, which is what this thread is about. 

 

But for everyone's reference, 90% occupancy at Market Square Tower is 46 empty units as of right now. That's still a lot of empty units, but hopefully it improves. 

Edited March 13, 2018 by 102IAHexpress

[Triton]

I have to admit, this is probably one of my favorite photos I've taken. 

 

Houston by Marc longoria, on Flickr

[UtterlyUrban]

On 3/12/2018 at 6:36 PM, CREguy13 said:

The below two quotes + article from today say otherwise:

 

"Less than a year after opening, Market Square Tower, Houston's tallest residential high-rise, is now over 90% leased."

 

"Despite many in Houston tightening their budgets, especially in the wake of Hurricane Harvey, interest in the property, where rent starts at $2,200/month, has been robust."

 

https://www.bisnow.com/houston/news/multifamily/market-square-hits-90-occupancy-amid-down-market-86022

This is great to see. For a building this large to fill up this quickly is terrific and likely faster than the owner’s projected.  I read somewhere that landlords (and their bankers) of large complexes believe that a 5-8% vacancy rate is “structural/normal”.  The fact that they have essentially “filled up” very fast is a credit to there marketing and the product that they delivered.  Kudos to them.  

 

My gut gut tells me that Aris will fill up just as fast.

[BeerNut]

2 hours ago, UtterlyUrban said:

This is great to see. For a building this large to fill up this quickly is terrific and likely faster than the owner’s projected.  I read somewhere that landlords (and their bankers) of large complexes believe that a 5-8% vacancy rate is “structural/normal”.  The fact that they have essentially “filled up” very fast is a credit to there marketing and the product that they delivered.  Kudos to them.  

 

My gut gut tells me that Aris will fill up just as fast.

you're correct that large complexes(even small ones) don't want 100% occupancy.  If you have 100% occupancy it means your pricing is too low and now you're waiting till leases are up to increase prices.

[Twinsanity02]

That area has turned around 180 degrees from years back. The park was a hangout for vagrants with trash and empty bottles strewn about. Most of the buildings were in awful shape. What an improvement. Can enjoy gyros and the skyline.

[rechlin]

They've now added another restaurant to Bravery called ATLAS.  From their email to investors:

 

Quote

Construction
Awaiting last series of comments from Houston city planning.
Initial painting of shell has commenced.

Floorplan has been adjusted to accommodate an additional concept.

Subcontractor selections have been finalized and preliminary equipment orders have been placed.

 

Concepts
Conceptual design, including finalizing food and drink menus, logos, branding, web and social media presence and aesthetic finishes to accentuate the individuality of each concept is continuing.

A rework of the initial floorplan has allowed Team Bravery to allocate space for an additional concept to work in tandem with the outdoor bar space. This additional concept stands to increase Bravery’s public appeal and profitability.

The additional concept, ATLAS, will be an elevated Diner concept with design elements reminiscent of 1930’s and 1940’s design.  Think Edward Hopper’s famous Nighthawks painting in Chicago.

The outdoor bar space, The Secret Garden, will feature a unique glass greenhouse design and feature multiple frozen cocktails, Frosé and bottled cocktail options for expedited and efficient high-volume service.

These two concepts will work in tandem. ATLAS & The Secret Garden will work synergistically to provide late night food and drink offerings and act as the “go to” Brunch destination in Downtown Houston.

 

Media
Team Bravery is in contact with local & national media to release updates on concept development and opening schedule. We are working with Visit Houston and GHCVB to ensure mentions in their ongoing press efforts.

We have had interest from award-winning documentary filmmakers for a possible television series featuring Bravery’s concept and development. Fingers crossed!

Overview
The Blind Goat from Chef Christine Ha

Cherry Block Craft Butcher and Seasonal Kitchen from Chef/Rancher Felix Flores

BOH Pasta from Chef Ben McPherson

Nuna Nikkei Bar from Chef David Guerrero

ATLAS elevated diner (Chef to be announced)

Fresh Seafood Concept Name TBD (announcing shortly)

Indie Bar Operated by local bar talent with evolving and changing concept schedule

Bravery Wine Bar Pouring unique wines produced solely for Bravery will act as the hub of operations for the food hall.

Secret Garden Outdoor space featuring fast and fun cocktail options and the ultimate Brunch destination.

Team Bravery looks forward to serving up a unique dining experience to Houstonians and visitors from around the globe. Stay tuned for more information as we get closer to an anticipated opening in Fall 2018.

 

 

[mattyt36]

How  much square footage is the food hall going to take up? And it’s all in the existing structure?

[Nate99]

I don't get out much. What is "bar talent"? 

[Houston19514]

15 minutes ago, Nate99 said:

I don't get out much. What is "bar talent"? 

 

From Eater Houston:  "Local bartenders will go head-to-head in a Shark Tank-style competition to earn their spot in the rotating lineup at Indie. The plan is for contenders to pitch Bravery partners Anh Mai, Lian Pham, and Shepard Ross on their “vision” for the space. Once chosen, they’ll be responsible for building an identity at the food hall including: creating menus, executing a design, and bringing their own team of staff. No word yet on how long the selection process will take, or how often the lineup will rotate."

 

[Houston19514]

15 hours ago, mattyt36 said:

How  much square footage is the food hall going to take up? And it’s all in the existing structure?

 

9,000 square feet.  And yes.

[Nate99]

4 hours ago, Houston19514 said:

 

From Eater Houston:  "Local bartenders will go head-to-head in a Shark Tank-style competition to earn their spot in the rotating lineup at Indie. The plan is for contenders to pitch Bravery partners Anh Mai, Lian Pham, and Shepard Ross on their “vision” for the space. Once chosen, they’ll be responsible for building an identity at the food hall including: creating menus, executing a design, and bringing their own team of staff. No word yet on how long the selection process will take, or how often the lineup will rotate."

 

 

I think I get it, but I can definitely tell I'm not the target audience. If they can pour beer from a tap to a glass without too much foam, I consider the bartender sufficiently talented. 

 

[Highrise Tower]

View from today

 

 

[DrLan34]

They had a New Year's Eve event at this location and should be putting four of the restaurants online soon. They also put up some fencing for the exterior patio along Preston.

[nate4l1f3]

12 hours ago, CrockpotandGravel said:

Bravery Chef Hall may open this weekend. If not this weekend, in early February.

Peeping through the window on Sunday I would be surprised if it’s this weekend.  Could be wrong but seems it would be a stretch. Definitely excited!

[rechlin]

They haven't said anything to investors since mid-December, but then they were planning a Winter opening, which to me implies sometime before late March.

[quietstorm]

I am absolutely love what is happening in downtown Houston right now.  Conservatory, Finn Hall, Bravery Chef Hall, Understory and Lyric Market will all contribute to the unique flavor of Downtown Houston.  

[j_cuevas713]

5 hours ago, quietstorm said:

I am absolutely love what is happening in downtown Houston right now.  Conservatory, Finn Hall, Bravery Chef Hall, Understory and Lyric Market will all contribute to the unique flavor of Downtown Houston.  

I took my friend this past wknd from out of town. We rented bikes in the Heights and rode all the way downtown. He always felt Austin was his favorite city until this past weekend. 

[H-Town Man]

13 hours ago, j_cuevas713 said:

I took my friend this past wknd from out of town. We rented bikes in the Heights and rode all the way downtown. He always felt Austin was his favorite city until this past weekend. 

 

It will be head and shoulders better after the I-45 reroute project. If they don't keep adding more lanes and connectors and feeder roads to everything to appease certain people.

 

[mollusk]

We're somewhat past early April, but it looks like they're finally getting ready to open.  Couldn't get a decent photo through the windows, but it appears they have pretty much everything in place. 

[rechlin]

From an email from Bravery:

 

Quote

We are thrilled to announce that we passed our final inspections last Friday, and we're now in possession of our Certificate of Occupancy. Bravery Chef Hall will quietly open on Tuesday, July 30th.   We’ll begin lunch service and continue ramping up from there.