HOUSTON— ZOM Texas began construction on The Hudson, a 431-unit apartment community in the Tanglewood market near the Galleria. The project is a joint venture with an investor account advised by UBS Global Asset Management.

The Hudson is located on Fountainview Drive at San Felipe with convenient access to the 610 Loop, providing quick commutes to downtown Houston, the Texas Medical Center and Greenway Plaza.  

“People are making the choice not to commute, and they are willing to pay for it," said Ryan Epstein, Senior Vice President of CBRE's Capital Markets Multi-Housing Group in Houston.

The project will be a four- and five-story wrap with a 7-level parking garage, adjacent to a proposed retail center anchored by an upscale gourmet HEB Market. The high-end amenities will feature an e-lounge, golf simulator, membership-quality fitness center, along with a dedicated dog park with pet salon. Pre-leasing will commence in the first quarter of 2015.

“ZOM continues to pursue multifamily development opportunities in Texas, with a particular focus on the Houston market, based on compelling long term trends,” noted David Kubin, Senior Vice President for ZOM Texas. “With Houston currently ranking No. 2 in the U.S. job market, and the anticipated robust job growth over the next five years, we niche into this market with a carefully researched, unique product and mix.”

Occupancy in the Houston apartment market increased dramatically in 2013, climbing to 90.5% at the close of the year from 89.5% at the start of 2013 explained Bruce McClenny, President of Apartment Data Services at the Houston Apartment Association's State of the Industry panel discussion yesterday.

“What we are seeing now is the best we've seen in 40 years. It is true growth,” added Kirk Tate, Chief Executive Officer at Orion Real Estate Services.

Stanford Construction will serve as general contractor and ZRS Management, LLC will provide property management services.

ZOM Texas, headquartered in Dallas, has previously developed seven projects in Texas. The Hudson is ZOM's third project in Houston, and thirty-eighth project for the company overall.

UBS Global Asset Management's Global Real Estate business manages real estate investments globally and regionally within Asia Pacific, Europe and the US, across the major real estate sectors.