The Voss: Multifamily At 7510 Burgoyne Rd.

[Boris]

Trammell Crow / TCC Lands Redevelopment Site in Galleria

By Amy Wolff Sorter

7510 Burgoyne Rd

HOUSTON- La Scala Apartments at 7510 Burgoyne Road, a 142-unit class C multifamily property in the Galleria submarket, has been sold to Trammell Crow Co., which plans to raze and rebuild the five-acre site with a 380-unit complex. The redevelopment is set to get under way in first quarter 2007.

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Todd Stewart, senior vice president in Houston for CB Richard Ellis, tells GlobeSt.com that equivalent land prices in the area can range from $30 per sf to $50 per sf. TCC's redevelopment strategy is becoming common among developers wanting to take advantage of Houston's market fundamentals.

"Land prices have been escalating over the past two years so developers are looking for infill sites with already existing buildings," says Stewart, who represented TCC's investment arm, Wentwood Capital Fund I LP. "That's what this deal was about."

In anticipation of the sale, seller GC 127 Voss Holdings LLC of Tacoma, WA began emptying the asset prior to the closing. "The property right now isn't too far from empty and occupancy is very low," Stewart says.

http://www.globest.com/news/762_762/houston/149876-1.html

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I just hope this trend continues further west.

Edit: The Voss Apartments located at 7510 Burgoyne Road.

[TheNiche]

I just hope this trend continues further west.

Perhaps in a few scattered locations, mostly on the periphery of Memorial...but I wouldn't hold my breath for Westchase.

[mrfootball]

Be nice if Harris County began to limit the number of permits for new Apts, forcing developers to have to do stuff like this (improving/rebuilding multi-family housing properties), rather than having them mushroom across town while the old properties fall into disrepair.

[TheNiche]

Be nice if Harris County began to limit the number of permits for new Apts, forcing developers to have to do stuff like this (improving/rebuilding multi-family housing properties), rather than having them mushroom across town while the old properties fall into disrepair.

Are you just trolling for my negative response or something? There are two big problems with your policy:

The first is that they limit the number of new permits, how would that ever encourage a developer to do what is being done here? This is new construction. They'll need permits. If those are harder to get, where's the incentive to rebuild?

The second is that if you don't allow developers to replace old apartment housing with new, then the rental rates go up in existing complexes, encouraging rennovation of older projects and fostering a demographic change in existing complexes, BUT where do you expect that the poor people are going to live as they're priced out of their current residences? And that may very well come back and bite you in the ass, because poor people priced out of the housing market will band together and live in high-density households that are susceptible to epidemological issues similar to those that plague the third world. They also tend to reproduce more than their higher-income counterparts, so they have a disproportionate number of kids in public schools. So their kids will go to school as carriers of the poor's diseases...and the impact will be felt by YOUR kids and eventually YOU. There is karma built into some free market scenarios...what goes around will come back to you.