HOUSTON – Hines, in a joint venture with TIAA Global Asset Management and Houston’s Zimmerman family, announced plans to develop the Residences at La Colombe d’Or, a 34-story apartment near Montrose Boulevard in Houston’s Inner Loop.
The project will be adjacent to La Colombe d’Or, a boutique hotel developed by Steve Zimmerman, who transformed the 1923-vintage Fondren Mansion into a upscale hostelry years ago.
Construction on the 285-unit residential tower is scheduled to begin in the second quarter of 2017 with completion set for 2020.
The announcement comes even as an oversupply of Class A multifamily has emerged in the Inner Loop of Houston.
In fact, the Downtown/Montrose/River Oaks ranks as the No. 4 submarket in the United States for new apartment construction over the last four years, according to MPF Research, a multifamily analytics group owned by RealPage.
In terms of apartment construction, this Inner Loop submarket ranks fourth nationally, behind only (1) Downtown/South End, Charlotte, N.C.; (2) Frisco/Prosper, Dallas and (3) Central Nashville.
“Downtown/Montrose/River Oaks’ apartment expansion rate since 2012 was 88 percent, including units under construction at the end of 1st quarter 2016,” MPF reported.
Apartment vacancy in the Montrose area has fallen over the last year as new units have been completed. The new 31-story Hanover Montrose apartment tower, which is next door to La Colombe d’Or, is currently offering eight weeks of free rent in order to attract residents.
However, the developers say the La Colombe d’Or residences will be different and it will be a successful project.
“There are no multifamily assets of this quality slated to compete with the opening of La Colombe d’Or, and the timing of this luxury development takes full advantage of that,” said JLL’s Tom Melody, who arranged joint venture equity for Hines and the Zimmerman family.
The Hines site is within walking distance to Houston’s Museum District – currently home to 19 museums, world class restaurants and night life. The Montrose neighborhood also provides future residents with direct access to major transit arteries and public transportation.
The site is just south of Westheimer Road – a location that has older homes in walkable neighborhoods, eclectic culture and a number of Houston’s best restaurants.
“I think this commitment by Hines in today’s market underscores the desirability of the Montrose/Museum District,” says Mark Davis of the Davis Commercial real estate firm and president of the Museum District Business Alliance. “Westheimer and Montrose is the “Main and Main” of the area, and this location, being only a block away, can’t get much better. Coupled with the local jewel of La Colombe d’Or, I think the project will be a success.”
The Zimmerman family, owners of the one-acre site, have owned and operated the adjacent the La Colombe d’Or Hotel, 3410 Montrose Blvd., for 36 years.
Zimmerman’s sons, Dan and Mark, also participate in managing the family’s hotel and restaurant and hotel organization.
“We really feel a close personal pride in Montrose,” Dan Zimmerman says. “It’s a very special place.”
August 31, 2016 Realty News Report Copyright 2016