And now we return once again to Swamplot’s continuing series on love, lust, and Houston’s public spaces. The obelisk of her affection: Hermann Park’s Pioneer Memorial. Next up: A Miniature Choo-Choo Train Named Desire.
Note: Audio possibly NSFW.
Video: sergio
Real estate agent Sandra Gunn informs us that the Montage, the second glass Almeda St. tower across from Hermann Park, was foreclosed on yesterday. Originally named Mosaic to match its adjacent twin directly to the north, the Montage has been a rental property since it was completed.
Almost exactly a year ago, the developer of both buildings — a limited partnership between Phillips Development & Realty and Florida Capital Real Estate Group — declared bankruptcy in order to avoid foreclosure on the Mosaic, which at the time was officially a condominium tower. And Florida Capital’s chief operating officer expressed hope that the Montage’s separate $71 million loan with Corus Bankshares could be renegotiated.
With its most recent achievements, the Mosaic earns its place in Houston’s spec-development record books: Last month the 29-story condo tower near Hermann Park — wedged between Almeda and 288 — scored the loan-default trifecta, having notched a bankruptcy, mass foreclosures, and an attendant bank failure to its credit all within a single calendar year.
Chicago’s Corus Bankshares, which held a $71 million loan for the Mosaic, foreclosed on all 271 unsold units (out of 394 total in the building) in September, just days before the bank itself was seized by the FDIC. A few weeks later, the federal agency sold 40 percent of the bank’s real estate loans to a team of private-equity firms calling itself Northwest Investments and led by Starwood Capital Group — for 60 cents on the dollar.
Any further fun at the Mosaic will be courtesy of the FDIC, reports Nancy Sarnoff:
Sure, “immersive landscapes” — where visitors are supposed to feel like they’re just hanging out with the chimps and rhinos and giraffes in the wild — are the latest craze in zoo design. But what’s really the most innovative aspect of the new 13-acre African Forest the Houston Zoo is planning for its southernmost quadrant, at the intersection of North MacGregor and Golf Course Dr. in Hermann Park?
The project
. . . will feature closed-circuit TV connections with area hospitals, allowing patients to view animal keeper presentations or simply to watch animals in their near-natural habitats.
[Houston Zoo President Deborah] Cannon said the programs first will be made available to children’s hospitals, then expanded. Ultimately, they may be made available to local schools, she said.
At last, an effort to capture some of that technological synergy swirling around the Houston Zoo-Med Center nexus! Best of all is the Chronicle’s own map identifying the project’s location, which is a gift to the city all by itself:
Here’s the latest installment of Swamplot’s fun-pix-from-around-town feature!
Above: While visiting last weekend’s Gulf Coast Green symposium and expo at the Reliant Center, Sean Morrissey Carroll catches the Astrodome peeking in on the action.
A few more images loom:
“It’s a Damn shame about those nesting rare birds but look on the bright side, if these condos keep selling like they have there will only be rare birds living there and trees growing up through the lobby anyway!” [james cianci, commenting on Mosaic Avoids Foreclosure, Files for Bankruptcy]
Alison Cook previews the promised second location for Little Big’s — set to open “probably late spring” in Hermann Park. The home of tiny burgers will slide into a shack overlooking a new bridge on a portion of McGovern Lake, just north of the Zoo.
But chef Bryan Caswell’s attempt to operate food carts in the park have forced him to face a Houston food legend that dates from long before the age of the taco truck:
The promised Little Big’s cart service inside the park is turning out to be complicated, however. Houston health ordinances forbid the actual cooking of sliders on the carts, which means Caswell & company must come up with some new “park-themed” menu ideas. “The whole restricted versus non-restricted cart thing is amazing,” says Caswell.
The chef notes that during the research phase of the project, “we found some very interesting info on why Houston doesn’t have street food cart vendors like New York City or New Orleans. If I recall correctly, in the early 1900s, the original Market Square was littered with tamale carts. One busy hot summer day, a large group of people got sick and I think even a few died. The carts were all blamed and chased out of town. Ever since, the food cart has been a heavily restricted H-Town deal.”
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:
Need a place to crash somewhere in Houston for a short visit — say, a week — but don’t want to stay in a hotel?
Phillips Development & Realty, developers of the Mosaic and freshly rebranded Montage towers across Almeda from Hermann Park, is handling rentals of Mosaic condos owned by investors — as well as rentals of the many units the developer has been unable to unload. Now a source passes on a new rumor to Swamplot: Some of those available rentals may be extremely short-term.
Not a bad idea for a property that’s close to the Med Center! With that rumor, though, come a couple more:
Phillips’s Corporate Leasing Director will be taking over management of the Mosaic’s homeowners association from the company that had been running it since the building opened last year. But Phillips’s new tenure at the HOA may be a short-term one too. Why?
Because Florida Capital Real Estate Partners, the Mosaic’s lender, might just be foreclosing on Phillips’s property soon — both the Mosaic and an apartment complex in Tampa called the Casa Bella. Swamplot’s source also suggests that Camelot Realty Group — the company that’s clearly been very busy handling the Mosaic’s many condo sales — may already have had discussions with Florida Capital about taking over onsite rental duties from Phillips once the foreclosure takes place.
Photo of Mosaic and Montage: Swamplot inbox
The soon-to-be-complete second Mosaic tower on Almeda across from Hermann Park will have a different name, reports Nancy Sarnoff in the Chronicle. It’ll be called the Montage, and all 394 units will be rentals, as predicted.
“The market is not supporting sales in two towers,” said Thomas Cervone of Camelot Realty Group, which was hired over the summer to sell units in the building.
Leasing on the second building will start in January, with the units renting for an average of $2.25 per square foot.
The new name will help distinguish the southern tower from the first one, which apparently also features a large number of rentals, even though it remains officially a condo building.
Photo: Aerial photo of Mosaic from July: Aero Photo
A reader asks:
Has anyone else heard the rumor that Mosaic Hermann Park’s South Tower (already under construction) is going all rental once complete?
It would be kinda cute if the second condo tower did end up switching to apartments, since the first tower went in the opposite direction:
[Phillips Development managing director Donald] Phillips says the company financed the first Mosaic tower as a rental property because that was the only way to secure funding.
“We did whatever we had to do to get the thing built,” he says.
Photo: Aerial photo of Mosaic from June: Aero Photo
Expect to see a lot more, uh . . . interesting advertising for the Mosaic towers on Almeda. Nancy Sarnoff reported in the Chronicle this past weekend that “about 65 units have closed” out of a total 790 in the two towers. The second glass tower is currently under construction at the eastern edge of Hermann Park.
That’s a long way to go, but the path sounds a whole lot steeper when you compare Sarnoff’s report to what Jennifer Dawson reported in the Houston Business Journal last August:
As of last week, 218 condos had sold in the first tower. Units in the second phase won’t go on sale until early next year. Ken Manfredi of Miami-based Developer Sales Group is handling Mosaic’s condo sales.
After the jump: More evocative ad imagery! Plus: the view from above.
The Hermann Park kiddie trains are running again! But blogger Lou Minatti considers the replacement C.P. Huntington too “plasticy”:
A news photographer was there and we chatted for a bit. According to his sources, the old train was replaced due to three reasons: The old 50’s-era train had no dead man’s switch, it wasn’t wheelchair-accessible, and our collective asses are bigger than they were in the 1950s. Hence the need for the much wider train.
Photo: Lou Minatti
If you’ve been waiting for your chance to take the perfect dramatic nighttime photo of the Mecom Fountain, act now! The fountain at the middle of the five-way intersection of Main, Montrose, and Hermann Dr. is currently bubble-bath-free and lights up properly at night, thanks to a more-than-$100,000 renovation effort approved by City Council back in November and completed last week.
Back in the fall of 2006, someone had stolen the 264 bronze canisters and light bulbs that lit up the fountains. After staying in the dark for months, it got some help more recently . . . with floodlights from high atop Hotel ZaZa. Maybe now those floods can be turned into motion detectors!
Security measures to protect the Mecom Fountain lights will include additional surveillance by the Houston Police Department, the Hotel ZaZa and the Houston Parks and Recreation Department.
After the jump, photos of the fountain lit up the way it was and how it’s supposed to be, plus a view of the Hermann Park beauty taking a bath.
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Comment of the Day: The Value of Failed Developments
“The financial failure of Mosaic is not related to zoning or neighborhood protection. Mosaic represents a massive mixed-use project that will (eventually) fill up and further the civic goals of increasing population density and adding positively to the streetscape. In the mean time, the FDIC and out-of-state investors are paying the property tax bill on units that aren’t occupied by people that would stress our infrastructure. Where’s the downside in that? If the alternative were a vacant lot, Mosaic is far preferable from a civic perspective. . . .” [TheNiche, commenting on Only the Towers Remain Standing: Mosaic and Friends Break the Bank]