Multifamily projects blossom near Buffalo Bayou Park
12A
HOUSTON Business JOURNAL
June 19-25, 2015
Residential real estate hub I [email protected]
Reporter Paul Takahashi
@HBJPAUL
713-395-9635
Residential Inc.
Multifamily projects blossom near Buffalo Bayou Park
A
se
me rci al u
Houston is going anywhere.”
courtesy
Bu sin ity
fo
rn als
Jo u es s
S. Shepherd
nC
The Monroe
D r i ve
eleanor tinsley park
en Pa k way r
1 West Dallas
West Clay
3
Taft
4
orial
Riva at the Park
Developer: Christopher Sims Luxury Builders
Project: 4-story, 365-unit apartment
Project: 7-story, 9-unit condominium
Project: 10-story, 29-unit condominium
Am eri
ca
Developer: Al Ross Luxury Homes
©
downtown
Montrose Blvd.
2
All
D’amico
Waugh
A
2
Mem
buffalo bayou park
Developer: Alliance Residential Co.
Chicago parking entrepreneur Jesse Levine represents a group of out-of-town investors who purchased Broadway Square Apartments, reportedly the single largest multifamily complex in Texas with 2,470 units, 11 swimming pools and 28 laundry rooms. The apartment complex was built by the late Houston multifamily developer Harold Farb in the 1970s. The investors plan to improve and maintain the
Q
3
Broadstone Tinsley Park
1
Mixed-use to rise on massive apartment complex near Hobby airport &
o
glenwood cemetery
Gillette
ay buffalo b
u
spotts park
-N ot
Residential projects planned near Buffalo Bayou Park
rc om
Cyrus Bahrami, managing director of Alliance Residential Co.’s Houston office, on why the Phoenix-based multifamily developer is moving forward on new apartment projects during the oil slump
Rochow
behind the deal
“Everyone is concerned about Houston, but this is a special opportunity for us to move up while our competitors are stalling. In 20 months, we will be delivering our apartment project into a recovering market where there is no pipeline of new projects. We don’t think
Broadstone Tinsley Park
Dunlavy
partments and condominium projects are blossoming near Buffalo Bayou Park as the city of Houston and the Buffalo Bayou Partnership finish up a $58 million renovation. Broadstone Tinsley Park is the latest multifamily project expected to break ground near the iconic Houston park. Alliance Residential Co. plans to build the four-story, 365-unit apartment project on 4.5 acres at Gillette and West Dallas streets, just south of Allen Parkway. The Phoenix-based developer purchased the land from the city for $39.9 million in a deal that closed in late April. The apartment units, which will wrap around a parking garage, will have hardwood floors, tall ceilings and gas appliances. Common-area amenities include a resort-style pool, courtyards, a dog park and a rooftop skydeck overlooking downtown Houston. A two-level glass clubhouse will offer a fitness center and a “skylounge,” which will overlook the streetscape. Alliance is working with joint venture partner The Carlyle Group, based in Washington, D.C., to build the project. EDI International Inc., based in Houston, is the architect. Terra Associates Inc., also based in Houston, is the engineer. Alliance plans to begin site work this month and is looking to start vertical construction by the end of the summer. Construction is expected to take two years.
4
Unnamed
Developer: Sunrise Luxury Living Project: 8-story, 224-unit apartment
property for at least five years, but could eventualy transform the southern portion of the 69-acre property closest to Hobby Airport into a mixed-use hotel, retail and office development with Houston’s first automated parking Jeffrey Fript garage, Levine said. Jeffrey Fript, vice president of investments in California-based brokerage Marcus & Millichap’s (NYSE: MMI) Houston office, represented Levine and the buyers in the massive transaction. ARA Newmark’s Houston office represented the seller, California-based Broadway Post Partners LLC. The financial terms of the deal, which closed in May, were not disclosed.
a lot of moving parts. Looking at Broadway Square Apartments as a broker, it’s really more like 10 to 12 properties. It’s the largest multifamily asset in Texas.
Describe the deal. It took less than a year to close the deal, but it was a fairly large and complex deal with
This interview has been edited for length and clarity.
Why were the buyers interested in this property? It’s really driven by the Hobby Airport expansion and Southwest Airlines (NYSE: LUV) flying internationally. This airport is going to be the new gateway to Houston. As a result, the city of Houston is beautifying Broadway Street. This was the catalyst for my buyers to purchase Broadway Square. They are going to control 80 acres across from Hobby Airport. What does this sale mean for Houston? Despite the perception of Houston in the media because of the drop in oil prices, Houston is still a great market. Investors still believe in Houston, and we still have buyers who want to invest in Houston. Both the seller and buyer from the this deal are from out of state.
HOUSTON Business JOURNAL
June 19-25, 2015
Residential real estate hub I [email protected]
Reporter Paul Takahashi
@HBJPAUL
713-395-9635
Residential Inc.
Multifamily projects blossom near Buffalo Bayou Park
A
se
me rci al u
Houston is going anywhere.”
courtesy
Bu sin ity
fo
rn als
Jo u es s
S. Shepherd
nC
The Monroe
D r i ve
eleanor tinsley park
en Pa k way r
1 West Dallas
West Clay
3
Taft
4
orial
Riva at the Park
Developer: Christopher Sims Luxury Builders
Project: 4-story, 365-unit apartment
Project: 7-story, 9-unit condominium
Project: 10-story, 29-unit condominium
Am eri
ca
Developer: Al Ross Luxury Homes
©
downtown
Montrose Blvd.
2
All
D’amico
Waugh
A
2
Mem
buffalo bayou park
Developer: Alliance Residential Co.
Chicago parking entrepreneur Jesse Levine represents a group of out-of-town investors who purchased Broadway Square Apartments, reportedly the single largest multifamily complex in Texas with 2,470 units, 11 swimming pools and 28 laundry rooms. The apartment complex was built by the late Houston multifamily developer Harold Farb in the 1970s. The investors plan to improve and maintain the
Q
3
Broadstone Tinsley Park
1
Mixed-use to rise on massive apartment complex near Hobby airport &
o
glenwood cemetery
Gillette
ay buffalo b
u
spotts park
-N ot
Residential projects planned near Buffalo Bayou Park
rc om
Cyrus Bahrami, managing director of Alliance Residential Co.’s Houston office, on why the Phoenix-based multifamily developer is moving forward on new apartment projects during the oil slump
Rochow
behind the deal
“Everyone is concerned about Houston, but this is a special opportunity for us to move up while our competitors are stalling. In 20 months, we will be delivering our apartment project into a recovering market where there is no pipeline of new projects. We don’t think
Broadstone Tinsley Park
Dunlavy
partments and condominium projects are blossoming near Buffalo Bayou Park as the city of Houston and the Buffalo Bayou Partnership finish up a $58 million renovation. Broadstone Tinsley Park is the latest multifamily project expected to break ground near the iconic Houston park. Alliance Residential Co. plans to build the four-story, 365-unit apartment project on 4.5 acres at Gillette and West Dallas streets, just south of Allen Parkway. The Phoenix-based developer purchased the land from the city for $39.9 million in a deal that closed in late April. The apartment units, which will wrap around a parking garage, will have hardwood floors, tall ceilings and gas appliances. Common-area amenities include a resort-style pool, courtyards, a dog park and a rooftop skydeck overlooking downtown Houston. A two-level glass clubhouse will offer a fitness center and a “skylounge,” which will overlook the streetscape. Alliance is working with joint venture partner The Carlyle Group, based in Washington, D.C., to build the project. EDI International Inc., based in Houston, is the architect. Terra Associates Inc., also based in Houston, is the engineer. Alliance plans to begin site work this month and is looking to start vertical construction by the end of the summer. Construction is expected to take two years.
4
Unnamed
Developer: Sunrise Luxury Living Project: 8-story, 224-unit apartment
property for at least five years, but could eventualy transform the southern portion of the 69-acre property closest to Hobby Airport into a mixed-use hotel, retail and office development with Houston’s first automated parking Jeffrey Fript garage, Levine said. Jeffrey Fript, vice president of investments in California-based brokerage Marcus & Millichap’s (NYSE: MMI) Houston office, represented Levine and the buyers in the massive transaction. ARA Newmark’s Houston office represented the seller, California-based Broadway Post Partners LLC. The financial terms of the deal, which closed in May, were not disclosed.
a lot of moving parts. Looking at Broadway Square Apartments as a broker, it’s really more like 10 to 12 properties. It’s the largest multifamily asset in Texas.
Describe the deal. It took less than a year to close the deal, but it was a fairly large and complex deal with
This interview has been edited for length and clarity.
Why were the buyers interested in this property? It’s really driven by the Hobby Airport expansion and Southwest Airlines (NYSE: LUV) flying internationally. This airport is going to be the new gateway to Houston. As a result, the city of Houston is beautifying Broadway Street. This was the catalyst for my buyers to purchase Broadway Square. They are going to control 80 acres across from Hobby Airport. What does this sale mean for Houston? Despite the perception of Houston in the media because of the drop in oil prices, Houston is still a great market. Investors still believe in Houston, and we still have buyers who want to invest in Houston. Both the seller and buyer from the this deal are from out of state.
