Houston Day 2 (May 25, 2010)

Day 2 in Houston included several project site visits.

We started the day by visiting the New Hope developments on Gulf freeway and Canal Street
These developments:
* are targeted to provide housing for very low income people (from $7,460 to $22,350/ year), particularly those with backgrounds that preclude them from the normal cycle like recovering addicts,
* mainly funded through private funding and donations,
* also utilized some city and state funding,
* helps support those in dire need through 'rainy day' reserves,
* promotes common area usages like kitchens, tv areas and libraries to promote interaction and reduce relapses and depression,
* charge rents sufficient to cover operating costs and a small replacement reserve.

The Gulf Frwy development also served as a redevelopment effort to tackle rampant criminal activities in the area. Per the New Hope folks, the city was instrumental in the redevelopment effort as a way to mitigate the criminal activities in the area.

Here are some snaps of the New Hope developments.


We also visited The City center Project on I-10 and Sam Houston Tollway
The development:
* is undertaken by Midway Companies,
* uses a project manager that deals with all aspects of the development from inception to completion,
* developed on site previously known as Town and Country Mall,
* purchased the cite and terminated all leasing contracts with the then existing tenants,
* redeveloped the area from grounds-up except for the three parking garage structures,
* equity funding mainly with pension funds (particularly Michigan teachers)
* no public funding to maintain total control of development,
* each development type is owned by separate entities affiliated with Midway Companies,
* currently two office buildings built (one is 100% occupied and the second is about 70% leased),
* current retail occupancy is about 60% and residential is about 72% (mainly to high net worth individuals),
* hotel is operates as Hotel Sorella; mainly focused on attracting guests related to the nearby energy corridor,
* all buildings are built to LEED standards but not certified,

Here are some snapshots of the development...