FIRST ONE IN WINS
With pent-up demand for multifamily projects, Post Properties VP of investments Bart French says the developers moving dirt first will be the victors in the race for deliveries. Post is one of the first breaking ground on a $42M Austin project slated for a Q3 '12 delivery. Three other projects are in planning stages in Houston and Frisco.
Post Properties EVP regional investment director David Ward (with Bart snapped in their Addison offices) says construction started in Austin in February at Post South Lamar. They have plans to start two projects in Houston and one in Frisco all within the next year or so. The REIT purchased all four Texas locations before the downturn allowing them to start construction immediately. Now is a good window to move into production with good locations in cities underpinned by significant job growth and rising rents, he tells us. New multifamily product deliveries in 2011 will be miniscule across the industry, and 2012 will be below what's taken out because of obsolescence, Dave says. That means it will be 2013 to 2014 before we see anything of substance delivered. (Not if the Mayan calendar has anything to say about it.) Post specializes in urban, high-density, mixed-use often with small retail components. ?We believe in having ancillary retail at our properties if it fits the space."
Post South Lamar in Austin will have 298 units and 10k SF of retail and is located just south of the river and fives minutes from downtown. ?We were one of the first out of the ground in Austin and will be one of the first in this cycle in Houston, too,? Bart tells us. The two Houston projects include a third phase in Midtown at Post Midtown Square and a yet to be named development on Richmond in the Montrose area. The Frisco project, Post Sierra, is an urban setting in the suburban area, but it works well because of its proximity to jobs and office concentration, David says. Phase 1 was completed in 2008 and has 269 units and 30k SF of retail and is stabilized. When completed, the second phase will add 350 units as well as additional ground floor retail. David will be among the expert panelists speaking at our second annual Bisnow DFW Multifamily Summit on June 29 at the Westin Galleria. Don't miss out! Register now. When you see David, offer him any flyfishing tips you have, because he's heading to Utah next month for a break.