Noble's 1M SF Building Multifamily Demand
Multifamily users are flocking to Tomball to capitalize on new demand drivers. ARA VP Tom Dosch, principal David Wylie and (not pictured) principal David Marshall closed two multifamily transactions in the high-barrier-to-entry submarket in the past two weeks. Tom and David Marshall (in ARA’s land group) helped Watermark Residential purchase a 14-acre tract at Spring Cypress and 249. In Q1, it'll break ground on a property similar to other projects it’s built around town lately (and like it’ll build in Sienna Plantation—Tom and David also helped it acquire a site there a few weeks ago). Tom tells us Watermark was drawn to the tract’s location just north of Noble’s new campus (where nearly 1M SF will deliver in 2015), and it feels good entering a market with nearly 94% occupancy.
The big challenge in building Tomball multifamily is finding a site—the City often restricts multifamily development. Watermark sidestepped that by buying just outside city limits. David Wylie’s deal involved another solution—acquiring an existing community. He repped the seller (Cottonwood Capital) of Park at Spring Creek, a 252-unit property built in 1999. It was 96% occupied at time of sale, and the buyer liked the value-add opportunity and proximity to employers like Noble, Baker Hughes, and businesses in the Tomball Business and Technology Park. Tom sees a new economic driver coming soon—the GHP has predicted Houston will add 9,200 healthcare jobs next year, and a lot of those will be in North Houston as systems are expanding their services along the Grand Parkway.