The giant inflatable-boat-like structure shown here afloat in an otherwise-empty East Downtown six-pack superblock is the latest rendition of . . . the new Houston Dynamo soccer stadium! The Houston Chronicle’s Bernardo Fallas has details:
The Dynamo want to have the roughly $85 million, 22,000-seat stadium ready for opening day 2011. They envision an all-round two-level, all-seater venue with 34 suites, 86 concession point-of-sales, a 3,000 square-foot club level and a party deck on the southeast corner.
Loving that subtle “soccer fans on a life raft” imagery? It gets better: The open-air stadium’s playing surface will be a full story underground!
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Read more about: 77003, Attractions, Dynamo Stadium, East Downtown, Financing, Proposed Developments, TIRZs
April 22, 2009 – 10:55 am
A financial blogger going by the overused name of Tyler Durden points to some fishy behavior on the part of banks promoting a new stock offering by troubled Weingarten Realty. Writes the reader who alerted Swamplot to the story:
This may be a bit too finance-y for you, but apparently a recent Weingarten equity offering is being used to pay down debt to banks, which the author of this post (and me) find a bit suspicious. Further shenanigans? Analyst recommendations changing for the better just before the tender.
Is this too finance-y for Swamplot? Let’s find out!
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Read more about: Financing, REITs, Weingarten Realty
“The maximum conforming loan at an 80% LTV translates to a selling price of just over $520k. Given the current interest rate premium on jumbo mortgages, new-builds that are just a little over this amount are tending to languish on the market, whereas those in the sub-$500k range seem to still be selling briskly. If I were a developer planning on putting up some $600k+ houses, I might re-think my plans and target buyers who can take advantage of the current low rates for conforming loans.” [Angostura, commenting on Latest Greenwood King Report: On the Double!]
Read more about: Buying and Selling, Comments, Financing, Real Estate Marketing
Sure is nice for us Houston didn’t get caught up in that big price run-up housing markets in the rest of the country fell for! That’s why in Houston real estate is in much better shape than it is everywhere else, right?
Not according to a study released yesterday by First American CoreLogic. The research firm estimates that 18.3 percent of all mortgaged properties in the Houston-Sugar Land-Baytown region are in a “negative equity position,” and another 6.7 percent are within just 5 percentage points of being there. “Negative equity,” AKA “I’ve fallen down and I can’t get up,” means a mortgage holder owes more than the underlying property is worth.
In other words, 1 in every 4 Houston-area mortgages is already in deep doo-doo.
But hey, all it’ll take to recover is for prices to rise a little! And the rest of the country is doing much worse, right?
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Read more about: Financing, Hazards, Houston Data, Mortgages, Negative Equity, Price Trends
February 2, 2009 – 12:17 pm
Buyers didn’t show up for the latest sale at the old JCPenney building next to West Oaks Mall. So Wachovia Bank will foreclose on the property soon, the CoStar Group reports.
The bankruptcy trustee for the collapsed financial empire of Edward H. Okun had listed the vacant building, which Okun’s 1031 Tax Group had bought for $4 million. But no buyers were willing to pay even the amount of the financing, which was $3 million.
The Houston JCPenney building and a mall in Salina, Kansas — also now facing foreclosure — are Okun’s last remaining properties.
Read more about: 1031 Exchanges, 77082, Alief, Commercial Real Estate, Edward H. Okun, Financing, Foreclosures
January 22, 2009 – 12:08 pm
The Austin-based owners of Westheimer’s Westcreek at River Oaks Apartments — just inside the Loop, just west of the giant new steel sculpture known as High Street — have refinanced the 574-unit complex with a $27.5 million, 7-year, floating-rate loan that allows prepayment with a penalty: “A flexible prepayment also means when market conditions warrant, the owner can redevelop the asset, which sits on 14.5 acres. ‘This is a well-maintained, but older property that sits on dirt, and the dirt is actually worth more than the apartments,’ [Matt] Greer [of Capmark Finance] explains. He says the asset’s owning partnership, which consists of local management company Kaplan Management Co. Inc. and an equity partner, will redevelop the property when market conditions come back.” [Globe St.]
Read more about: 77027, Apartments, Development Strategy, Financing, Highland Village, Redevelopment
January 16, 2009 – 10:48 am
So where are all the half-built homes? That question, asked by a Swamplot reader last week, prompted a slew of comments from other readers eager to identify pockets and neighborhoods in and around Houston where construction has come to a halt because of problems connected to the nationwide housing-market collapse. (As well as a few where construction stopped for reasons of a more local nature.)
Swamplot reader subprimelandguy suggested looking at Northwest Houston:
You need to go to the suburban areas, particularly the non master planned communities between the Beltway and Highway 6 / 1960. The most aggressive one is actually inside the Beltway near West Road and Gessner - a former Royce Homes (go figure) development called Westwood Gardens. It is a bombed out poster child for the subprime fiasco.
Then late yesterday, subprimelandguy sent in photos!
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Read more about: 77064, Abandoned Subdivisions, Cancellations and Delays, Financing, Homebuilders, Northwest Houston, Royce Builders, Westwood Gardens
January 9, 2009 – 4:59 pm
The developer of the Mosaic highrise overlooking Hermann Park — a limited partnership between Phillips Development & Realty and publicity-shy Florida Capital Real Estate Group — declared bankruptcy earlier this week to avoid foreclosure on a $71 million loan from Chicago lender Corus Bankshares. Florida Capital, originally the equity partner, will be taking over as the general partner.
The bankruptcy covers just the first Mosaic tower. The second tower, rebranded the Montage, has not yet defaulted on its separate $71 million Corus loan.
So how have sales been going at the Mosaic? It depends, the Houston Business Journal’s Jennifer Dawson learns, who you ask:
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Read more about: 77004, Apartments, Bankruptcies, Condos, Condos for Sale, Financing, Foreclosures, Hermann Park, Highrises, Homeowners' Associations, Mosaic and Montage, New Construction: Residential
January 7, 2009 – 5:43 pm
Read more about: 77004, Attractions, Financing, Museums
November 21, 2008 – 8:24 am
The River Oaks version of Michael Reed’s Examiner story about Sonoma’s failed financing efforts quoted here yesterday has an additional Walgreens update appended. The halt in plans for developing the Sonoma won’t change anything:
Meanwhile, Walgreens spokesman Robert Elfinger said Monday the Rice Village store will close Dec. 31 as planned and will not be relocated.
Photo of demolition on Bolsover St. last year: Jackson Myers
Read more about: 77005, Commercial Real Estate, Financing, Openings and Closings, Retail, Rice-Village, Sonoma
November 20, 2008 – 10:28 am
Sonoma’s would-be developers try to explain to West U Examiner reporter Michael Reed why the Rice Village retail-and-condo project was put “on hold” only a few weeks after the sales team sent out an email to prospective buyers claiming it had received financing:
Julie [Tysor], president of the Appelt Companies, said in an e-mail response to Examiner questions about the financing, “We had secured a substantial majority of the financing for the south building through the cooperation of some local lenders who have also supported this project since its inception.”
She said a number of factors contributed to the financing falling through, “not the least of which is historical world economic crisis that is unprecedented…”
So what’s going to happen to the site — which includes that block of Bolsover St. purchased from the city — now?
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Read more about: 77005, Commercial Real Estate, Condos, Financing, Mixed Use, Openings and Closings, Proposed Developments, Randall Davis, Retail, Rice-Village, Sonoma, Streets
November 14, 2008 – 11:04 am
Last month, a Sonoma sales rep told the West U Examiner that the project had secured financing — which turned out to be condo-sales-speak for “Maybe if people think we’re definitely going ahead we can still sell units and somehow find a way out of this mess.” Now Nancy Sarnoff reports in the Chronicle that the developer of the condos-and-retail complex slated for what used to be Bolsover St. in the Rice Village has told her that the project “is being put on hold ‘for the short term.’” This appears to be developer-speak for “We’re toast.”
Was the problem just “economic uncertainties and tumultuous credit markets”? After developer Lamesa Corp. and partner Randall Davis pulled their switcheroo, deciding to start with the project’s second phase because they couldn’t get the more grandiose first phase financed,
they went back to the market and were negotiating for a $70 million loan with 40 percent equity to build the smaller second phase of 85 units.
At that point they had nearly 70 buyers who had put down deposits. More than half were interested in the second building.
Translation: Almost half their buyers bailed.
There’s good news for the trashed 2-block section of the Village Sonoma leaves behind, though:
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Read more about: 77005, Commercial Real Estate, Condos, Financing, Land Sales, Mixed Use, Openings and Closings, Proposed Developments, Randall Davis, Rice-Village, Sonoma, Streets
October 24, 2008 – 3:49 pm
From Jennifer Dawson in today’s Houston Business Journal comes confirmation of part of Swamplot’s report earlier this week on the two highrises planned for Boulevard Place. The Hanover Company’s planned 37-story apartment tower isn’t moving forward anytime soon:
Construction was supposed to start this month, but that’s not going to happen because it’s too difficult to get a construction loan right now, says Hanover President John Nash.
He says it would be impossible to predict when the credit market would allow the project to move forward, but it could be delayed as much as a year.
Tower rendering: Solomon Cordwell Buenz, via the Houston Chronicle
Read more about: 77056, Apartments, BLVD Place, Condos, Financing, Galleria, Hotels, Mixed Use, Proposed Developments, Redevelopment, Uptown
Comment of the Day: Wilshire Village Payment Due
“I forgot to mention that with regard to the loan Dilick took out to pay for taxes on the property four years ago, sources have reported that the bank set a deadline of early April 2009 for him to take steps toward paying back that loan. In demolishing the apartments and selling the land, Dilick would be able to pay back the loan and make a profit as well. . . . As to the comment, ‘This is private property. The owner should be able to do with it as he sees fit,’ the problem is that Jay Cohen, who inherited the property from his parents, still holds 80 percent ownership. Sadly, he was duped or forced by circumstance into signing over managing control to Dilick. . . .” [dredger, commenting on Comment of the Day: Grand Unified Wilshire Village Conspiracy Theory]