Houston Submarkets: Multifamily Success in Montrose/Museum District
As demand continues to grow for multifamily and mixed-used properties, several of Houston’s real estate submarkets are resilient and growing in spite of challenges in the oil and gas industry. Those submarkets are ripe for development.
One of the Houston submarkets is the Montrose/Museum District, the city’s cultural epicenter. The district is within walking distance to 19 museums and facilities, including the Houston Zoo, Miller Outdoor Theatre and Hermann Park. It also is near downtown, Greenway Plaza, Upper Kirby, The Galleria and the Texas Medical Center, the largest medical complex in the world and Houston’s largest employer.
The area’s highest multifamily rents are nearing $2.60 per square foot. The average household Income is $92,317 and is projected to increase by 23 percent by 2019, well above the national and state average.
This submarket offers a perfect environment for a multifamily / mixed-use development due to its proximity to Houston’s largest employment districts, retail amenities, and the demand for luxury, infill core multifamily product. But the challenges are finding a property that is financially feasible, the proper size and configuration, with the best location and visibility.
Dallas-based developer StreetLights Residential engaged Drake Realty Group to research, locate and procure Class A, Core Urban Infill development sites for a new high-density, luxury multifamily development project in Houston’s highest rent submarkets. As a result of the assignment, The Carter, a 20-story residential high-rise with 305 luxury apartments, is now under construction by StreetLights in the Montrose/Museum District area of Houston.
The team at Drake Realty Group developed a strategy customized to StreetLights’ exact requirements. Using knowledge of the submarkets, meticulous research, face-to-face presentations with property owners and aggressive front end problem solving, the team successfully secured an off-market property for StreetLights’ first premier development in Houston.
Houston submarkets like the Montrose/Museum District have strong barriers to entry due to limited developable real estate, challenging sizes and configurations of available parcels, immense competition to buy and top dollar pricing.
The successful development of The Carter high-rise shows that Houston submarkets continue to have strong momentum and opportunities for multifamily and mixed-use development projects. In addition, Houston, which topped Forbes magazine’s list of America’s Fastest Growing Cities this year, continues to grow and so do the opportunities for real estate development.
For more details relating to the land procurement process for The Carter, read the multifamily investment property case study on our website. Contact the Drake Realty Group broker team to find out how we can help you find the right property for development.