First Multifamily Land Buy in Slower Economy
In one of the first multifamily land development deals to start and end in this weakened oil market, ARA Newmark helped Bohannon Development purchase 15.5 acres near Springwoods Village. David Marshall, Tim Dosch and Becky Hand tell us 65 multifamily land sales have fallen through this year. Between 15 and 20 will close this year, but most of those began last year when the market was stronger. This deal began in July, months after most investors had hit the brakes. Pictured is the ARA Newmark land team--David, Tom Dosch, Tim and Clark Dalton.
The gents tell us probably 90% of multifamily developers are on the sidelines now; even ones that are interested in starting something can't get debt or equity. But Bohannon's using its own money, which means it can be contrarian. And while it's also concerned about the energy market, it just couldn't pass up this tract. It's at Kuykendahl and the Grand Parkway, the last exit before Springwoods Village and at one of only a few exit/entrance ramps off the Grand Parkway. The site is part of a larger one that Friendswood Development and a group of investors have been selling around their Lakes of Avalon single-family development; it previously sold a tract to Memorial Hermann, which has an ER under construction now. Bohannon will build a luxury apartment complex.