Foreign Investors Drive Houston Construction
The US real estate market will draw more foreign investors in 2016, according to Bloomberg, and Houston is no exception. There’s been a flurry of foreign investment activity in the Greater Houston area; we’ve compiled a few of the biggest deals.
ComfortPlex
Japanese HVAC manufacturer Daikin is building a 4M SF manufacturing and distribution facility, ComfortPlex, in Waller. The complex is the largest industrial project under construction in the US and the largest tilt-wall project in the world. The building will be eco-friendly and feature an energy management system, a white reflective roof, and plenty of collaboration space for folks in both manufacturing and distribution. The $420M plant will employ 4,000 and should be complete mid-2016.
Block 384
Allied Orion partnered with Houston EB5 and ATMA for equity, and BancorpSouth Bank provided debt on Block 384, a new eight-story residential tower. The 63k SF building is near the northwest intersection of I-45 and Hwy 59, close to the Toyota Center, BBVA Compass Stadium, Minute Maid Park and the Theater District. The project broke ground several months ago, is slated for completion Q3 ‘17, and will add an estimated 1,700 jobs within a half mile of the site.
Heights Condos
Luxury home realtor Fabian Trujillo is working with a group of unnamed foreign investors, primarily from Central America, to develop a high-rise condo complex in the booming Heights. The 35-story tower will be at Shepherd Drive and I-10 and include 120 to 150 units. The property boasts a rooftop amenity deck with a pool, solar panels and a helicopter pad. Trujillo hopes to have a sales center open by Q4 2016.
The Astoria
Developer Randall Davis and entrepreneur Roberto Contreras, a Mexico City native, partnered with unnamed foreign investors to bankroll The Astoria, a $70M residential tower under construction in the Galleria. The 29-floor tower combines modern architecture with art deco features and plenty of amenities in 75 high-end units. The development team used the EB-5 visa program to attract investors who can become permanent residents of the US for investing in a project that creates local jobs. The property is set to deliver in December 2016.
1000 Main
German-based Union Investment purchased 1000 Main for a cool $440M in one of the biggest deals citywide in the last two years. That’s a $200M increase for Invesco after two years of ownership. Designed by Gensler, the iconic 36-story building tops out at 518 feet and includes 827k SF of Class-A office space. Bordered by McKinney, Main, Travis and Lamar streets, 1000 Main sits in the heart of Houston’s CBD and is directly connected to the tunnel system.
In a survey performed by the Association of Foreign Investors in Real Estate, 64% of respondents said they intend to make modest or major increases to their American investments in 2016. Hopefully Houston will continue to benefit from this uptick.
