What effects have difficulties with bank financing stemming from the global financial crisis had on some of those big new developments planned for Houston? The Houston Business Journal‘s Jennifer Dawson weighs in with a “Where Are They Now?” roundup:
- Regent Square: That big design change meant a year’s delay; the first parts of the 24-acre Inner Loop development are now scheduled to start construction in the second quarter of 2009. A marketing center will open at 1203 Dunlavy next month, but have some more official kickoff in February.
- Sonoma: “Called off — for now,” but you already knew that. According to Dawson, it wasn’t so much the banks but the developer that grew skittish:
Julie Tysor of Lamesa says most of the loan was committed for phase two, but the partnership decided last week to pull the plug on the deal after analyzing the risk of today’s volatile marketplace.
“It’s not simply loan-related,” Tysor says. “This partnership is a conservative developer.”
- River Oaks District: Remember this one? 15 mixed-use acres on Westheimer, and only a short drive from River Oaks. Was supposed to break ground by the end of the year, but no sign of anything happening. Developer “could not be reached for comment.”
- The Titan, Randall Davis’s name-dropping Post Oak tower: Not selling so quickly. About 23 percent of the inventory (by dollar value) has been sold, including 2 in the last week, Davis says. And Dawson grabs this evocative quote from the developer: “I’m stuck in a land of vagary myself. I hope to have clarity by year-end.”
- Two 35-story apartment towers planned for the corner of Westheimer and Sage in the Galleria, next to Walgreens, announced by Indiana-based Whiteco Residential (developers of the Dominion Post Oak) back in February 2007: Doesn’t look like anything’s happening, and Whiteco isn’t returning calls.
- Deyaar Development’s unannounced plans for the 6 acres the Dubai company recently bought at the corner of Richmond and Post Oak: Still unknown. Company won’t comment.
- The office building planned for the site immediately to the north, at 3100 Post Oak, by Lasco/Hicks Ventures: On hold. Still looking for a major tenant.