Doug Britton thought he had the deal of a lifetime: a contract to buy 101 acres of land (in red on the map) just south of the spot in Spring where — it was rumored at the time — ExxonMobil planned to develop a new corporate campus. And it was available for cheap: just $5 million. Britton contacted two brokers at Bandier Partners to help him move on it.
St. John’s School has purchased 13 acres of land, expanding its 29-acre campus in River Oaks. Headmaster Mark Desjardins tells the Houston Chronicle that the school on Westheimer won’t be developing the new acreage right away and hasn’t decided what will become of the businesses already there at the intersection of W. Alabama and Buffalo Speedway. Those include a fortune teller, the River Oaks Plant House, known for its oversized topiary-like Chia pets (dancing at left), and Blanco’s Bar & Grill, sitting there in a dusty parking lot as though it’s on a far-flung farm road and not right across the street from the 23-story Lamar Tower. (It’s hiding behind the Blanco’s sign in the photo above.)
Longtime speculation that the entire vacant 104-acre site formerly occupied by the AstroWorld amusement park might someday be turned into some sort of singular mixed-use development took a hit yesterday as the Houston Livestock Show and Rodeo announced it is buying the entire western half of the property, which sits across the 610 Loop from Reliant Park. The charitable organization hopes to close on the 48-acre tract by the end of the year. The purchase price is listed on its website as approximately $42.8 million, or $20.50 per sq. ft., “after charitable considerations by the seller.” That’s a Dallas investment firm known as the Mallick Group, which has owned the vacant property since 2010.
What will it rodeo do on all that land?
COMMENT OF THE DAY: THE SHORT TIMERS “I’ve lived in Oak Forest now for 11+ years, zoned to OFE, in an original house just north of 43rd, west of Ella and about 5 years ago began receiving sporadic letters to buy the house site unseen. That stepped up a bit a year ago and we now get 2-3 a month from random builders/real estaters trying to purchase our house with promises to close within 30 days. Granted not all the original homes are gems, some need to be torn down, but there aren’t many of those now left, and other originals are well maintained and still solid, smaller by today’s standards, but that’s a preference for me. The kids enjoy the bigger yard. I don’t mind the new bigger homes that much, but unfortunately the new homes on the block have had owners that lived there for about a year before they put it back on the market. Both are back up for sale again at the same time. The block is pretty tight, we know each other, but really never got to know the folks in the new builds. That is the underlying issue for a lot of the folks in the neighborhood with the old vs. new, it’s the perceived mindset or commitment to the neighborhood.” [greg, commenting on Comment of the Day: That Brand-New Neighborhood Called Oak Forest]
NEW MYSTERY OWNER OF 136 ACRES IN THE FIFTH WARD 
Missing from today’s announcement by KBR that the company has completed the sale of its Ship-Channel-front 136-acre former headquarters campus at 4100 Clinton Dr. in the Fifth Ward: any mention of the buyer — or the sales price. Both details were available earlier in the week on a different sale the engineering, construction, and military contracting company was involved in — of the 40-story Downtown office tower that KBR leases and partially owned. (The tower at 601 Jefferson went to an affiliate of New York’s W.P. Carey, for $174.6 million.) [Prime Property; previously on Swamplot] Image: HFF
COMMENT OF THE DAY: HOUSTON FIRST SKIPS THE BULLY SALES BLOCK “Instead of ‘hoping’ to get residential/retail development on the site, why not REQUIRE such development on the site via deed restrictions or other contractual agreements with the buyer? This is how HISD screwed themselves on the sale of their old administration building. They sold to the highest bidder and ‘hoped’ they would build something like the fancy mixed use rendering they were passing around. Instead we got a Costco and an LA Fitness. When you consider that HISD pockets more than 50 percent of every tax dollar paid by the property, they might have made more money in the long run by GIVING AWAY their land to someone who would have developed it more intensely.” [Bernard, commenting on Headlines: Downtown Block for Sale; Accessing Remote Hermann Park]
There’s a crack team of construction professionals readying this brand-new single-story on Prince St. in Timbergrove Manor for some lucky new owner. And looky here, out of the closet: Workers are bending over . . . uh, forwards to make sure the hardwood floorboards are aligned perfectly, deep in a pantry corner recess. It’s a view of the “Open Entertainers Floor Plan” touted in the listing. Maybe this space has been transformed into a kitchen by now, but isn’t it a whole lot more fun to see an action shot of the transformation in process?
The conquest of a long strip of land between Travis and Main known as the Midtown Superblock was completed last month, Shaina Zucker reports in today’s Houston Business Journal. The strip center at the corner of Travis and Anita once known as Liberty Square, and more recently for tenants Escobar and the Thien An sandwich shop, was sold to the Midtown Redevelopment Authority in September. Escobar, Thien An, and a second nightclub in the building will have until the end of the year to scram. The TIRZ plans to swap the land under the strip center with Camden Property Trust, in return for a couple of properties at the northern end of the same superblock.
That’ll give the Midtown authority a tiny bit less than 3 acres of land facing McGowen St., leaving Camden with the superblock’s slightly larger southern portion. The organization plans to build a park on its end — but one that includes 8,500 sq. ft. of retail space and 250 underground parking spaces, according to Zucker:
The director of the Bayou Land Conservancy announced yesterday that a 100-acre tract of flood-prone land surrounding Cypress Creek just south of the Hewlett-Packard campus between Hwy. 249 and Jones Rd. will now become a permanent conservation easement. (Segments of the waterway marked in dark and light blue in the map at right indicate the 100-year floodway and 100-year floodplain, respectively.) The land trust purchased the property with help from a $500,000 Houston Endowment grant; plans are to incorporate the tract into the planned Cypress Creek Greenway, extending the full length of the bayou from Spring Creek to the Katy Prairie:
THAT ONE CHANCE TO BUY YOUR NEIGHBOR’S MANSION IN SHADYSIDE 
“These houses turn over once in a lifetime and if you miss the opportunity, you’re screwed,” declares an unidentified Shadyside resident in Terrence McCoy’s Houston Press cover story — about that epic lawsuit that residents and watchers of the gated neighborhood just north of Rice University have been whispering about for the last several years. “That house will never come up again. If you want to control your destiny, you have to buy the house. You got to get it and if you don’t get it, you’re screwed.” [Houston Press; slideshow] Photo of Shadyside: Alex Stoll
Montrose-area real estate investor (and frequent Swamplot commenter) Cody Lutsch expects to close later this month on 3 apartment buildings on Holman just east of HCC between Crawford and 288 that he calls “the worst of the worst” in Midtown. A web listing for the properties cautions potential buyers: “DO NOT WALK THE PROPERTY AND DISTURB THE TENANTS. (it’s for you own good, i mean it).” Lutsch calls the group of buildings, which date from 1938 and has seen half a dozen owners over the last 10 years, “very very rough . . . Police are always going over there, there is drugs, prostitution . . .”
COMMENT OF THE DAY: WHAT YOU REALLY MADE ON YOUR HOUSE “. . . Most people say ‘I bought it for x and sold it for y, so I made an (y-x)/x return on my house’ which really isn’t the case. That formula can tell you your total appreciation in market value, but that is not the same as your ROI. To get closer to calculating an accurate nominal return, you need deduct the following from y: total in real estate taxes you paid while you owned the home, total expenses for repairs and maintenance, total amount of insurance premiums, the total interest and fees you paid to a lender before paying off your mortgage, and any commissions you paid to a realtor. You can then add back any income tax benefit you got for deducting your interest payments as well as any income you got from renting out all or part of your property. If you wanted to take things to the next level you could discount these cash flows and also convert nominal dollars to real, but I think even with just doing the above exercise most people will find that they didn’t really make as much money on their house as they think they did, and unless you manage to time your purchase, sale, and hold period just right, home values really have to appreciate significantly each year for the regular homeowner to just break even on it as a pure investment. That said, I think there are a lot of other very good arguments in favor of home ownership, including some financial ones. My point is just that if you bought a house for $100K and sold it 10 years later for $200K, you didn’t actually get a 10% annual return unless your property was tax exempt, you paid cash (and had a separate account set up to hedge inflation and compensate you for the cost of that capital being tied up for ten years), sold it yourself, didn’t buy homeowner’s or flood insurance, and never made any repairs.” [You Didn’t Earn That, commenting on Comment of the Day: What You Inner Loopers Got Wrong]
COMMENT OF THE DAY: WHAT YOU INNER LOOPERS GOT WRONG “. . . You could have bought a 3,000 sqft home in the burbs for $250,000 and put the $500,000 you saved in an investment that has a return that is better than 3%. Not to mention the money you had to spend putting a couple of kids through private school. The idea that residential real estate is a good investment is not supported by the data during a time of record low interest rates. Once the fed starts to raise rates again you are going to have trouble selling those homes that sit on expensive land for what you have in them. The only people that made off like bandits in the last decade in Houston were those who bought a single family home on a 7,000 sqft lot and replaced it with several single family townhomes.” [Dave Swank, commenting on Shops Replacing San Jacinto Stone, Just North of the South-of-the-Heights Walmart]
COMMENT OF THE DAY: A FEW BUMPS ON THE WAY TO A HOME SALE “There is a decent fault line map at this url. Much more than this and you would need to contact the GIS department at Harris County Flood Control (I think). The Long Point fault is interesting. More interesting to me was the Pecore fault in the Heights. I bought a home with no disclosure from the prior owner or the inspector. All the neighbors knew but I did not know them. Went to sell it after remodeling the property and it comes up. Obvious when I drive that area now. Ultimately it was a disclosure item but not an issue at sale.” [sboney, commenting on Yards of Yard in Britmore Oaks]
HUMMUS AND FALAFEL TAKING OVER FOR COLD CHICKEN IN SECOND WARD 
Pita Pal plans to turn the 93,000-sq.-ft. former refrigerated processed meats factory at the corner of Canal St. and North Palmer east of Downtown that it just bought from Tyson Foods into a well-oiled hummus, salad, and falafel-making machine — powered by 100 new employees, and maybe another 100 later. A full 39,000 sq. ft. of the warehouse space on the 4-acre site is refrigerated; when Tyson ran it there was room for 1,300 workers. Pita Pal president Melissa Navon tells reporter Molly Ryan it may be tough to find experienced food-service workers in Houston, but that she expects to find enough experienced oil industry and medical personnel to meet the company’s needs. [Houston Business Journal] Photo of 3100 Canal St.: LoopNet
