The locally based developer wanted to see if it could get a higher price to beat the unsolicited offer for the 1901 Post Oak Blvd. property, says David Wiley, a vice president with Apartment Realty Advisors' local office. He and ARA's Matthew Rotan and David Oelfke are marketing the trophy on behalf of locally based Hanover. "This asset will attract investors who've never bought in Houston," Wiley says.
Although the Lofts on Post Oak is being marketed with no list price, it will likely sell for $76 million to $78 million--or roughly $219,000 per unit, Wiley tells GlobeSt.com. And given the recent surge of interest in condominiums, he expects the development will be claimed by a converter. "I am not going to rule out the rental community, but this property is perfect for condos," Wiley says.
Industry experts point to the recent sale of 3333 Allen Parkway, which was purchased by BCN Development for more than $225,000 per unit. The Denver-based developer plans to convert the rental property into residential condominiums.
"They're both very nice assets, but Lofts on Post Oak is in a better location and is more condo ready," Wiley says.
Situated on 5.2 acres, Lofts on Post Oak sits right in the middle of the Galleria. It is within walking distance of 28.3 million sf of office space, more than five million sf of retail and more than 2,600 luxury rooms in 26 hotels. "It's an irreplaceable location," Wiley stresses.
Completed this month, Lofts on Post Oak consists of an eight-story tower and a four-story mid-rise totaling 380,991 sf. The duo has 253 one-bedroom units, ranging from 685 sf to 1,432 sf, and 98 two-bedroom units, ranging from 1,202 sf to 1,854 sf. The units, renting for $1.72 per sf, are a mix of soft-lofts and hard-lofts with hardwood floors, stained concrete, granite countertops and stainless steel appliances.
"We think someone will come in and convert the tower into condos and keep the mid-rise as a rental property until a later date," Wiley says, adding the tower's 66 units average 1,470 sf.
"Lofts at Post Oak would be the first condo project that fills the middle ground. It's not low-end or extremely high-end," Wiley says, estimating condos in the project could sell for $275 per sf. He says Lofts on Post Oak has no assumable financing.
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