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February 6, 2014
Another Galleria Multifam Gem Coming
Post Properties is nearly done with its Post 510 development in Midtown/ Montrose, so it's perfect timing for its next deal. We've got the details.
Post Properties VP of investments Bart French (keeping warm in sunny Florida working on another deal now) tells us the newest project is yet unnamed but will sit inside the Loop near Richmond and 610. Post acquired the four-acre site last year; it's occupied by an abandoned hotel, qualifying it for BOMA's Most-Likely-To-Be-The-Site-Of-An-Episode-Of Scooby-Doo. It will demolish the hotel (yoinks!) and replace it with 390 high-end apartment homes.
A rendering of the upcoming property. Bart expects a groundbreaking later this year, depending on market conditions, and construction will last 20 to 24 months. To be a little cozier, the five-story project will orient toward the neighborhood rather than 610.
These guys are really digging Richmond Avenue; leasing begins this month at Post 510, which sits at the corner of Richmond and the 59 Spur. That 242-unit property (snapped Thursday) will be complete by early summer. Bart says Post loves the central and vibrant location. Post is looking for more sites in Houston now (we recommend they connect the dots with a property near Richmond and Kirby and dominate the whole street).
Houston's office construction boom is swinging us back toward a tenant's market, says Studley regional research manager Tim Wingfield. That's largely thanks to increasing availability. Vacant Class-A big blocks (over 50k SF) increased 19% to 57 from Q3 to Q4 alone; 26% of that is from new construction, and 23% are sublets. Overall availabilities grew 2.1% year-over-year market-wide. There's been some steady movement from users--Tim says there will be 71 moves of 50k SF or larger between 2012 and 2014—but overall leasing dropped nearly 27% in Q4 to 3.2M SF.
Katy Freeway is seeing the bulk of construction and posted a 5.9% jump in availabilities in Q4. Tim says there are now nine opportunities for users over 150k SF in the area from Highway 6 to Kirkwood/Eldridge to Briar Forest alone (like Enclave Place, pictured, perfect for vain trees that need a mirror). Rents are still increasing dramatically; Class-A rates leapt 12.2% year-over-year to $33.02. (Studley tracks gross rents, so tax reassessments last year factor in.) But Tim predicts that'll decelerate now. As so many tenants have moved to new construction, second-generation openings have grown, giving users the option to take cheaper space (a year ago, the market was so tight you pretty much had to go new product).
Congrats, TOBY Winners
BOMA named its annual TOBY award winners and celebrated its 80th anniversary Friday. Kudos to Fulbright Tower—besides snagging the award for the 1M+ SF category, the CBRE management team (pictured, it's led by Wayne Courreges) won three awards new to this year: best teamwork, best tour, and best portfolio. Fulbright Tower is owned by Crescent 1301 McKinney. Intellicenter, managed by Lincoln Property's Melanie Short and owned by Phoenix Property, won in the 100k to 249k SF category, and Pearland Medical Plaza (owned and managed by HCFD Realty, management led by Lynn Harris) won for MOBs.
Northchase and North Belt, Lincoln Property assets managed by Cindy Williams (guess which one is her above), earned the award for suburban office park mid-rise, and 2000 St. James Place was named the best corporate facility. It's managed by Transwestern's Morris Chen. All five winners are going on to the regional competition, held in Fort Worth this March. Good luck!
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