One Park Place: Multifamily At 1400 McKinney St.

[Montrose1100]

Looking at the top from the historic district (pearing above 5 Houston Center), it almost looks fake.

[Jax]

Today I noticed how well you could see One Park Place in the Skyline from the East End (ymm... Vietnamese sandwiches). It looks really good and is really eye catching from over there.

[Subdude]

^^ I love the "older feel" of the design, and in a skyline like Houston's, it makes OPP look all the more special. These post-modern residential structures are ok, but they look very repetitive. How many flat topped, all glass structures can you have in one place?

We've got our fair share of post-modern residential towers in Houston. They're just not being built in downtown (which is fine by me).

Yeah, it does have an "older feel", but old as in the 1980s. To me that is what makes it so incongruous. I wouldn't think that a 1980s revival style would have that much of a historical gloss.

[totheskies]

I called OPP on Friday, and they said they are very close to finalizing the grocer. No official confirmations for which one it will be though.

[TheNiche]

So by this, you're saying that just b/c someone is rich, that means that they do not use public transportation? Or that (more specifically) rich people don't ride the bus? I suppose having money will give you more options than someone that is poor and doesn't own a car, but it does not guarantee that the person will not ever ride the bus. They may be concerned about their carbon footprint, or may not like to drive, or they may be too miserly to hire a private driver. If you're going to be so adamant about accusing others of making sweeping generalities, you should avoid making them yourself.

More precisely, I am saying that there is a strong negative correlation between the variables 1) wealth and 2) bus trips. I do not mean to say that a wealthier person will never under any circumstances ride the bus. They may get their license revoked as a result of a DWI, for instance. However such trips are going to be ridiculously few and far in between among the upper echelons of society because busses are painfully slow and often perceived as being unpleasant.

This pattern is reflected in METRO bus ridership data in both urban and suburban service areas of varying physical form and demographic composition.

Your scenarios are valid, but they don't really address the statement that I made. I only said that living in downtown will provide an increased number of transit options, and I did not go on to imply that every resident would use those options 100% of the time, or that all residents would be able to use them.

Oooh, transit options. Not transit use or transit efficiency, but options!

Foolish me. The holy grail of urban planning, after all, is not that people actually walk or use transit--screw observed preferences!--it's only important that society allocates scarce resources to ensure that people have the capability of acting in a way that they typically won't. It's about fantasy. The availability of transit makes people inexplicably feel good and therefore I should feel good. ...yet for some reason I don't feel good about it. There's obviously something wrong with me since I'm not willing to indulge the urbanist fantasy. Would you suggest that I be evaluated for a personality disorder? I almost don't feel right asking you that question, but you seem to have a philosophical perspective that precludes the possibility of empiricism interfering with your view of what is socially beneficial, and that's just something (obviously a fault on my part) that I just can't get past.

I guess you can assume that, but it's not what I meant. "Other people" could be anyone who is not directly involved with the project.

So you've asked when was the last time that a project occurred, whether it resulted in a success or a failure, without the input of someone who was not hired for their opinion. My development in the East End fits that criteria. No non-professional opinions have been sought or rendered and it will succeed or it will fail.

Which illustrates how deep the recession has gotten. Of course I made another general assumption about our housing crisis, and I will shamefully admit that I am uninformed. Maybe you can help me. Which areas have seen more forclosures over the last 18 mos.? Suburbs, or urban areas? Is the same true even when you account for the fact that more people live in the suburbs?

Foreclosure activity is foremostly correlated with demographic indicators reflecting socioeconomic conditions within a given neighborhood. About 6 months ago (or thereabouts) I posted on HAIF a statistical review of inner loop housing markets by zip code.

I'm sure it's gotten worse since then, since massive layoffs didn't really pick up in Houston until recently, making the effect of subprime foreclosures less prominent.

At that time, nearly half of all MLS listings were foreclosures in poor predominantly black areas such as 77020 or 77021. It got down to about a third or even a quarter of them in poor predominantly hispanic areas such as 77011, 77012, or 77023. And neighborhoods like Montrose and the Heights were closer to an eighth. Less than 1% of homes listed for sale in Bellaire or West U were foreclosures. Among townhomes, there were especially high rates of foreclosure among particular townhome developments and not in others, and most townhome developments are so small that it is difficult to identify a clear pattern as to why some developments were apparently cursed and others weren't. And among condos, foreclosures were especially high in well-known disasters such as Live Oak Lofts and Tremont Tower, but also in various downtown buildings.

The suburban areas have been subject to similar patterns. The worst-off are those areas where there were way too many low-priced starter homes all bunched together, such as in North Katy or Spring, but also in areas where starter homes were interspersed among existing older housing stock. Up until perhaps about six months ago, American MetroStudy reported that the velocity of sales of new homes in the higher price echelons were actually increasing, even as the market for starter homes tanked.

The lesson in all this, more than anything, is that whether you live in a suburban or an urban area, the price point that you happen to fall in makes the biggest difference. The central Houston economy is no more immune than are the suburbs, but households in McMansions are certainly are more buffered to the economy than are households in starter homes.

Mosaic is a very aggressive project... it's been built in an area that's transitional at best, and it's a huge number of units. But I'm not sure that I would imply that the developers of Mosaic are incompetent just b/c they are willing to take a risk. We don't know what the Almeda area will be like in 10 years, b/c we're not there yet.

The Mosaic development team declared bankruptcy within the last several weeks. Does that pass for a verdict?

But what we do know is that enough people live in/around the Museum District, Hermann Park, and Third Ward to warrant the possibility of a residential development in the area. So if you're going by population trends of the surroundings, way fewer people live in proximity to OPP than live in proximity to Mosaic. Again, as a classical singer, I don't want to mislead anyone into thinking that I know how to assess risk within a given real estate profile, but the current lack of residential population would assume that OPP was a "bold move"... at least more bold than your avg. Houston area development.

What did in Mosaic was that too many very similar units were built targeted at too high a price point. Also, because they tried to develop a highrise on what was not a good highrise site, they wasted lots of time and resources tying up the land for years while they tried again and again to arrange financing. I know for fact that they had been working on that project since at least 2002. Had they developed something nearly identical to Esplanade at Hermann Park or the Amalfi, both right across the road, that would've been less aggressive but would have been a financial success. They probably would've built it, filled it up with tenants, and then sold it while cap rates were low and before capital markets crashed.

One Park Place is different. It is indisputably a highrise site, far superior to Mosaic's. Finger is developing fewer units there, a greater diversity of floor plans will appeal to a broader spectrum of prospective residents (as well as to corporate tenants, which Mosaic was unable to tap), and the nature of rentals makes them much easier to sell to an urban crowd than does for-sale housing. Finger also may have high-end finishes and amenities at OPP, but they are not going overboard with them. After accounting for mortage, maintenance fees, and taxes, buying a unit at Mosaic is substantially more expensive than leasing a similar-sized unit at OPP, and a Mosaic buyer can only expect to break even on their mortgage (excl. other expenses) after living there for upwards of about four years--except that urban residents tend to be somewhat more transient than that.

Comparing Mosaic and One Park Place for aggressiveness is no contest. Mosaic takes the cake. Finger went to great effort and expense in order to develop realistic projections and isn't going to make such amateurish mistakes like bringing in a nightclub as a so-called amenity. Mind you, I'm not saying that OPP isn't subject to an above-average market risk, just that they have compensated for it by approaching the project with adequate caution. ...and I know this must get tiring hearing me say this, but I do have inside knowledge of both projects to that effect. PM me if curious and I'll gladly explain.

[Daniepwils]

So by this, you're saying that just b/c someone is rich, that means that they do not use public transportation? Or that (more specifically) rich people don't ride the bus? I suppose having money will give you more options than someone that is poor and doesn't own a car, but it does not guarantee that the person will not ever ride the bus. They may be concerned about their carbon footprint, or may not like to drive, or they may be too miserly to hire a private driver. If you're going to be so adamant about accusing others of making sweeping generalities, you should avoid making them yourself.

Are you kidding me? This is not New York or San Fran...

I guarantee you that a "rich" person in Houston does not and will not ever take public transportation in Houston unless one thing changes. That change would be if the public transportation system was more reliable and FASTER than a private automobile.

I have had a place in downtown for 5 years now (3yrs in Humble Tower Lofts, and 2yrs in Commerce Tower) and never once have I stepped foot on a bus, they are unreliable and take forever from what I have read and hear.

[N Judah]

I don't mind this. Build great parks, and then tout the development that they attract. A few more DGs around the city would be absolutely fantastic in my personal view.

[rsb320]

Yeah, it does have an "older feel", but old as in the 1980s. To me that is what makes it so incongruous. I wouldn't think that a 1980s revival style would have that much of a historical gloss.

I don't understand. Most of our major buildings were built in the 1980's and this building definitely has a different era feeling than the others.

[Daniepwils]

I called OPP on Friday, and they said they are very close to finalizing the grocer. No official confirmations for which one it will be though.

That just made my day! Keep us updated

[CALMSP]

this will be awesome!!! Can't wait for that..........do we know what else will be in OPP??? Anything?? i thought a restaurant/coffee shop or somethign along those lines...........

does anyone know what the rental occupancy is looking like??

[totheskies]

Are you kidding me? This is not New York or San Fran...

I guarantee you that a "rich" person in Houston does not and will not ever take public transportation in Houston unless one thing changes. That change would be if the public transportation system was more reliable and FASTER than a private automobile.

I have had a place in downtown for 5 years now (3yrs in Humble Tower Lofts, and 2yrs in Commerce Tower) and never once have I stepped foot on a bus, they are unreliable and take forever from what I have read and hear.

It depends on the route, your destination, and how many places you need to get to. I know that the mindset has reverted thanks to gas prices, but a lot of people were using the buses regularly over the summer. You should try it sometime.

[TheNiche]

It depends on the route, your destination, and how many places you need to get to. I know that the mindset has reverted thanks to gas prices, but a lot of people were using the buses regularly over the summer. You should try it sometime.

If someone is so pinched by gas prices that they have to use painfully slow local bus routes (and not the nicer coach busses available at Park & Ride lots), they're probably going to be screened and rejected by Finger because they're not income-qualified to live in the most expensive apartments in Houston.

[Jax]

I took a nice photo of the skyline last night where you can see One Park Place and there's a lightning strike too. Check it out.

[brijonmang]

I took a nice photo of the skyline last night where you can see One Park Place and there's a lightning strike too. Check it out.

YES! That picture is AWESOME! Thank you for posting that.

[totheskies]

this will be awesome!!! Can't wait for that..........do we know what else will be in OPP??? Anything?? i thought a restaurant/coffee shop or somethign along those lines...........

does anyone know what the rental occupancy is looking like??

I did ask if any additional retail was planeed, and the guy said "not at the moment". I asked if there was going to be room for additional retail down the pipe, he b/s-ed something like "I'm not at liberty to disclose that info". But from the first answer he'd already slipped up.

[totheskies]

If someone is so pinched by gas prices that they have to use painfully slow local bus routes (and not the nicer coach busses available at Park & Ride lots), they're probably going to be screened and rejected by Finger because they're not income-qualified to live in the most expensive apartments in Houston.

I wholeheartedly agree with you on that point. But as a member of the Houston Grand Opera Chorus, I know lots of people that live downtown (ok let me be specific... 8 people), and refuse to purchase a personal automobile. They live in places like Hogg Palace, Kirby lofts, the Franklin building and 2011 Main. Being one of the chorus members whom has a car, I am often paid a subsidy to take these people to outlying gigs that they couldn't otherwise get to. So again, I totally understand what you guys are saying, but there are always going to be exceptions to "the rule"... especially when you're dealing with nonsenssical artists and musicians.

[kylejack]

I guarantee you that a "rich" person in Houston does not and will not ever take public transportation in Houston unless one thing changes. That change would be if the public transportation system was more reliable and FASTER than a private automobile.

I know a number of rich-ish people that take the train from their downtown apartments to the Medical Center.

[TheNiche]

So again, I totally understand what you guys are saying, but there are always going to be exceptions to "the rule"... especially when you're dealing with nonsenssical artists and musicians.

Oooooh! OK. Yeah. I understand. That makes perfect sense precisely because it doesn't.

[LTAWACS]

Hrm... sounds like good news to me.

[TheNiche]

I did ask if any additional retail was planeed, and the guy said "not at the moment". I asked if there was going to be room for additional retail down the pipe, he b/s-ed something like "I'm not at liberty to disclose that info". But from the first answer he'd already slipped up.

Where could the additional future retail physically be placed?

[LTAWACS]

Where could the additional future retail physically be placed?

Probably on one of the other sides. Or inside the retail establishment that's already going in there.

[Houston19514]

Where could the additional future retail physically be placed?

IIRC, the grocery space is on the west side of the building and there is a smaller retail space I think on the east side, conceptualized for a restaurant or cafe with outdoor plaza seating space.

[totheskies]

IIRC, the grocery space is on the west side of the building and there is a smaller retail space I think on the east side, conceptualized for a restaurant or cafe with outdoor plaza seating space.

That was my guess... considering the grocers that they are recruiting, it's probably just going to be the normal "in-store chain"... Cafe on the Run w/ Central Market etc. Eventhough it's not really separate from the grocer, OPP can market the area as additional retail.

Side question... has anyone been to Urban Market in Dallas?

[HtownWxBoy]

Was walking around Downtown this morning... One Park Place just looks AMAZING from up close... like from Discovery Green. It's like nothing else in Houston.

[ChannelTwoNews]

IIRC, the grocery space is on the west side of the building and there is a smaller retail space I think on the east side, conceptualized for a restaurant or cafe with outdoor plaza seating space.

Not sure how recent it is, but NewQuest has a small brochure on leasing opportunites on the ground level. Page 3 has the layout.

http://docs.newquest.com/brochures/onepark.pdf

[BigSky]

I heard it is going to be Central Market, don't know if it is true, but that is the rumor I heard. It makes sense due to the fact that Fingers was doing the other development off of W. Dallas that more than likely is not going to break ground and they had a lease agreement with Central Market.

Let's see if it pans out.

[crunchtastic]

I heard it is going to be Central Market, don't know if it is true, but that is the rumor I heard. It makes sense due to the fact that Fingers was doing the other development off of W. Dallas that more than likely is not going to break ground and they had a lease agreement with Central Market.

Let's see if it pans out.

When was the W. Dallas/ Waugh project called off?

Whole Foods is slated for that site, btw, not HEB.

[Jax]

I guess Central Market would make more sense Downtown than Whole Foods because the nearest Central Market is almost in the Galleria (Wesleyan and Westheimer).

Also, Houston only has one Central Market compared with 2 in Austin and 4 in the Dallas metro area so they might be interested in expanding here.

[H-Town Man]

Also, Houston only has one Central Market compared with 2 in Austin and 4 in the Dallas metro area so they might be interested in expanding here.

That's ridiculous.

[crunchtastic]

Looking at the brochure, the OPP retail space is a little over 18,000 sq feet. I don't see Central Market going into that space--it is roughly the size of the produce department at the CM flagship. The average CM is I think around 70,000 sq feet, and HEB doesn't scale them down. In fact the current concept is even larger, combining a CM with a large suburban store ( Bunker Hill). I have heard from friends back in San Antonio (but cannot comfirm) that HEB's expansion plans include more of these stores, not CMs.

Whole Foods, however, does scale for urban real estate, and some are quite small. I'd bet the one on Magazine Street in NOLA is maybe 25,000 sqft. I think they may go smaller than that, even. A buddy in San Franciso said one was going in either the Haight or the Castro, and was supposed to be really tiny by suburban standards, around 15-20,000 sq. ft. My guess for OPP would be someone else entirely, or possibly WF.