Developer Randall Davis has been trying to buy an entire 16-unit townhome complex at the corner of San Felipe Dr. and Nantucket Ln. “They have tried multiple times to purchase,” a source tells Swamplot, noting that the offers have been rejected so far. In September of last year, Davis sent an offer of $400,000 for each unit at 5918 San Felipe St., sweetened with a $50,000 discount off the purchase price of a unit in the condo building Davis intends to build in their place. “They needed a unanimous decision” from all 16 owners, the source notes, “which did not happen.”
The townhome complex was built in 1977; it’s directly adjacent to a gas station on the corner of San Felipe and Fountain View, and around the corner from 7-story brick-and-concrete-block Tanglewood Condos (visible at top right in the photo at top).
None of the townhomes in the complex is currently listed for sale. The highest price paid for a townhome in the complex, according to MLS records, was $305,000 for a 1,664-sq.-ft unit last June. But a reader who is not a resident tells Swamplot that the main reason the residents rejected the offer was that the price was too low, “especially for the people that purchased and renovated within the past couple years. Also, it would be difficult to find a home in the area in that price range with the same appeal.”
So I did a back of the napkin calculation so I apologize if there are any errors.
– Total combined land sq ft (from HCAD): 40,209 sq/ft
– $400K/unit x 16 units = $6,400,000 or $159 sq/ft
What should land sale for (per sq ft) in the area ?
Also noticed that the tax appraised value on one of the properties was bumped to $374K… Seems like you would have to pay significantly more than tax rolls to relocate people who do not want to move in the first place.
A lot of people will spend time arguing about how much this property is worth, but the bottom line is, if you want to convince people to sell you their land and move, you should give them enough money to buy something else in the area. Some people like their neighborhoods, and not everyone is going to be happy to make a bit of money by moving out to Pearland.
The land across the street where the HEB is being built was purchased for about $35/SF. Not nearly the same type of product, but there’s a comp for you.
Good for the homeowners, suck it Randall Davis, no tower for you!
Value is assessed by what people are willing to pay, if it’s worth this amount to Davis then so be it. Let’s all hope it falls thru, this man develops, bar none, some of the in ugliest shit I’ve ever seen. He has zero taste, but he does understand location and it’s obvious people are willing to over look the tacky Za Za Gabor inspired designs if the location is right. The only thing he ever did right was the Rice Lofts, but the Rice is a beautiful old building and thankfully he didn’t add his gargoyles etc, this guy can’t help but guild the lily, he must be related to the Beverly Hillbillies.
My condo complex sits on about 6 acres of land on the western edge of River Oaks. We’ve been approached a few times by developers, but our bylaws require 100% owner approval to terminate the condo regime. There was a reported offer of $39M, which comes to about $270,800/unit (not accounting for differences in common ownership). That wouldn’t buy squat inside the loop today, so we will probably never get every owner to sell. Fine by me!
This is Houston, every man has a price… but I have to cringe every time Mr. Davis has a new project. His buildings are unlivable (interior design wise, no room for furniture), inappropriate (they don’t fit the neighborhood), and unbearable (like Disney among other architecturally significant builds) . But I guess he’s so rich, he’s unstoppable…
Randy Davis produces the most nasty ass crap of any developer in this town. Totally without class.
But $1,000.000 will get you a green card at his latest design disaster. Please move to another city
Mr. Bad Design Davis.
That section of the mid loop west of the Galleria will see more and more mid rises over the coming decades. And I enjoy Davis’ stuff. His designs are almost cartoonish and could be called cheesy-chic but they catch the eye and make an artistic statement. If Houston’s streets were art gallery walls, most of us would walk out if all that was hung on them were earth-toned canvases with predictable proportions. I’d prefer to live in a city that resembles a comic book more than it does a text book.
I agree with SanJuan.