The 32-story 3333 Allen Parkway is the only high-rise rental property now on the Houston market, G. Craig LaFollette, senior vice president with the Houston office of CB Richard Ellis Inc. tells GlobeSt.com. He expects bidding could reach $100 million for the 60%-leased asset, the first high-rise residential product to be built in the Allen Parkway corridor since the early 1980s.
LaFollette says the Austin-based developer built 3333 Allen Parkway with a quick resell strategy in mind. Right now, it is tied to a construction loan with Chicago-based Corus Bank. The complex, situated on 2.7 acres, has units averaging 1,653 sf with some of the highest monthly rents in the city, $2.09 per sf or $3,456 per unit. The asset includes an adjacent five-story parking garage.
Though no early bids have rolled in yet, LaFollette expects 12 to 15 offers will be placed by the July 14 deadline. He says a "best and final" round of bidding is a high possibility. A closing is anticipated for late September or early October.
LaFollette says the list of investors is sure to include condo conversion buyers. The 3333 Allen Parkway is a "cutting edge asset on the leading edge of a dramatic demographic trend in Houston," says LaFollette. "Demand for Inner Loop living is surging."
Houston, like other metros, is a hotbed of condo activity. Recent research by the locally based Personette & Associates shows Baby Boomers are leading the buy sides at prices predicted to exceed $200 per sf this year.
Besides LaFollette, the seller's team includes J. Todd Stewart and M Todd Marix, both senior vice presidents in the Houston office of CBRE, and Jay H. Massirman, executive vice president in CBRE's Miami office.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
