Here Are Houston's Largest Multifamily Developments Under Construction
Touted as the first high-rise residential development in Midtown, the luxury apartment building dubbed 2850 Fannin is topping out this week, Australia-based Caydon Property Group told Bisnow exclusively.
The 357-unit, 27-story property at 2850 Fannin St. will feature 13K SF of ground-level retail on Drew Street. One of the tenants that will occupy the space is an Atlanta-based eatery, The Flying Biscuit. All units are expected to be delivered by summer 2019.
The $200M development will feature studio, one- and two-bedroom units that range from 550 SF to 1,300 SF. The company also purchased additional parcels near the development to construct a mixed-use environment to span over three city blocks.
Community amenities include a fitness center, a yoga room, a business center, open meeting spaces, a half-acre pool deck with a swim-up bar, a commercial kitchen and bar, a dog park and a tenant-only sky bar. The luxury tower was designed by Houston-based Ziegler Cooper. Hoar Construction is leading the construction.
While 2850 Fannin and other major multifamily projects are on the way in Houston, the construction pipeline has relaxed, with new unit deliveries dropping by about 75% from two years ago, according to a JLL multifamily report.
By the end of the third quarter, developers had added about 5,400 new units. JLL predicted about 2,500 more units by year-end. By that time, Houston deliveries will remain way under previous totals of 13,700 units in 2017 and 21,000 in 2018. Occupancy stands at 90% for Q3 2018 for the first time since 2016.
While key indicators such as the city's growing population, high employment rate and a strong economy back a demand for apartments, Avison Young principal and Managing Director Rand Stephens said construction lenders are being cautious not to oversaturate the market and have a repeat of 2015-16.
Here are five other large apartment communities currently under construction in the Bayou City, according to data provided by Transwestern.
Expected delivery: 2020
3300 Main is a luxury mixed-use development by AECOM and Houston-based PMRG, according to a release. The 29-story tower will feature 328 units with 15K SF of ground-level retail on a 1.16-acre site in the Midtown district. The property was formerly owned by the city. Construction at 3300 Main St. is expected to be completed in 2020.
On-site amenities include a two-story fitness center and aqua lounge, a three-quarter-acre pool and an amenity deck. The recreational space will showcase downtown views with the amenity pad facing east to Main Street and the pool terrace facing west. At least two restaurants will occupy the street level.
AECOM Capital Real Estate Senior Managing Director Timothy Haskin said 3300 Main St. is a continuation of the company's strategy to invest in transit-oriented development in transforming neighborhoods. This property is bounded by Stuart and Francis streets and is along the METRORail Red Line.
Broad Street Real Estate Credit Partners III provided the construction loan. AECOM Hunt serves as construction manager. Construction began in late May.
Hanover River Oaks
Submarket: Upper Kirby
Expected delivery: late 2019
After a nearly four-year delay, Hanover River Oaks broke ground at the end of 2017. The 39-story luxury tower will feature 370 units that average 1,172 SF and about 10K SF of street-level retail on a 1.6-acre site at 2930 Kirby Drive in Houston, according to an HFF release.
The upscale finishes include stainless steel appliances, stone countertops, kitchen islands and pantries, garden tubs, walk-in closets, computer niches and/or dry bars, floor-to-ceiling windows and faux wood and tile flooring throughout.
Community amenities will include a rooftop pool with sunbeds and poolside cabanas, a fitness club, a catering kitchen with private dining room, a private theater, a pet-washing station and a 24-hour concierge.
HFF's Cortney Cole, Scott Galloway and Dustin Selzer secured financing for the luxury high-rise tower.
Broadstone Summer Street
Expected delivery: 2019
Broadstone Summer Street is one of the latest upscale apartment communities from Alliance Residential Co. On a 4-acre lot at 3030 Summer St., the 375-unit, five-story community will feature one- and two-bedroom units that range from 600 SF to 1,200 SF.
On-site amenities will include a screening room, an art studio, a library and gallery space, a business and conference center, a game and clubroom with catering kitchen, a fitness area with cardio, a yoga room, a virtual training and fitness lounge. The pool area will feature grilling stations, gaming lawn and roof deck with downtown views. The first units are expected to deliver in August, according to Phoenix-based Alliance Residential Co. Development Director Luke Phillippi.
Delivery expectation: late 2018/early 2019
Houston-based Judwin Properties Inc. is constructing the first luxury apartment community in Fulshear, a growing community west of Katy. The firm originally announced the project in 2015, according to the Houston Business Journal. ParkLane Fulshear is at 27222 Fulshear Bend Drive behind a H-E-B grocery store near Fulshear Parkway and FM 1463.
ParkLane Fulshear will feature studio, one-, two- and three-bedroom units that range from 521 SF to 1,533 SF, according to the company's website. Rents start a $995 for a studio to $2,249 for the largest floor plan. Units will be equipped with a full-size washer and dryer, granite countertops, stainless steel appliances, built-in microwaves, spacious closets and wood-patterned vinyl flooring with carpet in bedrooms.
Property amenities will include a four-lane bowling center with party room, a fitness center, an aerobics room, an indoor half-court gym, a movie theater, an internet café, a gaming area, music and relaxation rooms, a conference center, a resort-style pool and a bark park.
Two Lakes Edge
Submarket: The Woodlands
Expected delivery: spring 2020
Dallas-based developer The Howard Hughes Corp. went big with its latest multifamily development, Two Lakes Edge. The 386-unit, eight-story apartment complex is the second within Hughes Landing, a 66-acre master-planned community in The Woodlands. The project is expected to deliver in 2020, according to the company release.
The luxury community features one-, two- and three-bedroom units with ground-level retail and a restaurant on Hughes Landing Boulevard. In-unit finishes include quartz countertops, simulated wood flooring, stainless steel appliances, walk-in closets, 10-foot ceilings and washer and dryers. All units will also include home automation technology.
Community amenities include a resort-style pool, an outdoor entertainment area that overlooks Lake Woodlands, wine storage, a fitness center, a yoga room, an outdoor fitness lawn and a sky lounge on the top floor. The property will provide multiple kayaks and bikes free to use by residents.
Preston Partnership is the architect, and Hoar Construction is the construction manager. Hoar Construction also completed the first phase of multifamily development, One Lakes Edge, in 2015.
CORRECTION, DEC. 4, 10:45 A.M. ET: A previous version of this story mischaracterized Stephens' comments regarding the construction of multifamily developments in Houston. The on-site amenities for the Broadstone Summer Street were also incorrect. This story has been updated.