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]
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Tag: Buying and Selling
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
KNOCKING THE TREES AROUND PEGGY SHIFFICK PARK 
The duplex at 720 Bomar St. adjacent to East Montrose’s tiny Peggy Shiffick Park is back on the market, a week and a half after its prospective purchaser, developer Vinod Ramani of Urban Living, scaled back his plans to build 3 townhomes on the site (pictured at left) to just 2, and just a few days after backing out of the deal altogether. Some neighbors concerned the planned 3-1/2-story townhomes would clip a large portion of the branches and roots of the park’s signature oak tree had opposed 2 variance requests Ramani had submitted for the project. In the meantime, both Urban Living and neighborhood groups were alarmed to discover that city-contracted workers had severed the main roots of large trees on the property at the corner of Bomar and Crocker earlier this month while installing sewer-line connections. [Houston Chronicle; previously on Swamplot] Image: Urban Living
It “only” took 987 days to sell her Pearland home, Jenny Lawson announces. But did the Bloggess — and now bestselling author — shirk on that “No Zombies — sort of” guarantee she had offered on her single-story David Weekly model in Southern Trails back in 2010 when she first put it on the market? “In the middle of signing all of the paperwork,” she writes, “I mentioned to Victor that we should probably disclose that we buried that-guy-I-couldn’t-remember-the-name-of in our yard years ago and Victor looked at me like I’d lost my mind. Probably because you’re not supposed to say that in front of realtors. Then Victor told me to be quiet, but I mentioned that we’d probably go to hell for not digging the guy back up. Then Victor explained that I was talking about a saint I’d buried upside down in our front lawn to help sell the house and the realtor looked at us like we were insane because apparently she’s not Catholic. And technically neither are we, but at the time we were pretty desperate to sell the house and I was willing to bury just about anyone in the yard to stop having to pay two mortgages.”
“Better see the Telephone Museum while you can,” a tipster tells Swamplot. “Word is it’s sold.” But our tipster doesn’t know who the buyer of the Heights’ AT&T building is. The 3-story, 77,456-sq.-ft. structure at 1714 Ashland St.— it’s got a basement too — was put up for sale earlier this year for $3.1 million. It comes with 113 parking spaces on the 1.65 acre-lot, plus 55 spaces on a half-acre spot across the street. The museum is on the building’s second floor; the structure was built in 1957.
Update: The museum will be out of there by December 1st, Charlotte Aguilar reports.
Weingarten Realty has at last sold the 2.08-acre parcel under the Fiesta Mart on Studewood at 14th St. — to a Houston developer of assisted-living and independent-living complexes. Bridgewood Properties, the company behind the Village of Meyerland complex under construction at 4141 N. Braeswood Blvd. near Stella Link on the site of the former Rutlege Apartments and the Village at the Woodlands Waterway, plans to build a 4-story, 80-unit building in place of the grocery store — with independent-living apartments on the top floor, a bottom floor for “memory care” patients, and 2 floors of assisted-living units sandwiched in between. Fiesta’s lease expires in January; Bridgewood plans to begin building a “Craftsman style” structure in its place shortly thereafter, which should take 16 to 18 months to finish.
- Goodbye Studewood Fiesta; hello boutique senior living [The Leader]
- *Updated* New use in store for Heights Fiesta Mart [Prime Property]
- 1407 Studewood [Moody Rambin]
- Communities [Bridgewood Properties]
- Previously on Swamplot: Heights Grocery: Not Gone Yet
Photo: Swamplot inbox
EAST OF DOWNTOWN, AND NO ONE’S BITING 
“I need help,” writes the would-be seller of this townhome just north of the railroad tracks from East Downtown, a day after cutting the asking price down to $254,900. (It originally sold for $236K back in 2008.) “I read Swamplot daily and love seeing what your astute commenters have to say. I’ve lived in the Houston area my entire life but am new to selling a house around here. I’ve had my townhouse on the market for a few weeks now but haven’t had much traffic. I’m wondering if this is normal around here or maybe there’s just not enough buzz for my house. Is the pricing all wrong? Are the pictures awful? Is my agent doing enough (umm… Hi, mom!)? Is my ’hood too early in the gentrification stage? It really is a great house and a pretty cool neighborhood if I do say so myself! I’d love some advice from folks in the know.” [Swamplot inbox]
