CLEANING UP AFTER THE WESTHEIMER PARK APARTMENTS “Austin-based Falcon Southwest expects the demolition to be complete by July on the 185-unit complex at 9235 Westheimer, between Fondren and Gessner. Phil Capron, president of Falcon Southwest, says the property was under contract late last year to an apartment developer who wanted to build a five-story complex on the 4.8-acre site. The developer, whom he won’t name, could not get financing because of market conditions. Falcon Southwest will plant grass on the site before relisting it because “it will show better totally clean,†Capron says. He hopes to sell the tract for $30 to $35 per square foot, which would put the price between $6.3 million and $7.4 million. Falcon Southwest also owns the next door Westheimer Terrace Apartments, which are not for sale now, but Capron says will be at some time in the future.” [Houston Business Journal; previously on Swamplot]
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Wow, a 4.8 acre park on Westheimer.
Actually, here’s something I don’t understand so I’m throwing this out to folks… Presumably the 185-unit complex is at least partially occupied. So every month, it generates revenue.
Now assuming that what Capron says is true, and the property will “show better totally clean”, I assume that means he believes it will sell sooner. And let’s assume that the $7.4 million price is correct.
My question is, how much faster does it have to sell to make up for 1) the lost rent revenue that his grassy knoll won’t be generating, and 2) the cost of scraping the lot? If the apartments are, say, 70% occupied and generating $500/month (net of costs) per apartment, that’s a hell of a lot of foregone income.
(Or had all the tenants been evicted in anticipation of the previous deal, which fell through for lack of financing. In which case, scraping and planting might make financial sense.)
That space would make one hell of a community garden.
So they put in a community garden and then when the property sells the buyer gets to deal with protests about the evil developers with menacing buildings overlooking a frightened tomato? I’m thinking a vacant field may be the highest and best use for the time being.
I don’t think putting a community garden on a $7 million piece of property is a wise use of resources.
I don’t see how scraping an income-producing property to make it look better for potential buyers makes economic sense, either. Can’t buyers just imagine what the property would look like without the apartments there?