David Weekley Homes has acquired the largest available tract of land on the eastern side of the Heights to develop a new urban product in a prime Houston pocket bustling with more than $50 million of development activity.
Chris Dray, executive vice president of locally based NewQuest Properties, has been patiently working on the transaction nearly two years along with Horrigan & Goehrs LLP, the court-appointed trustee for the Robert Wayne Estate. The just-sold tracts are 4.81 acres at 2100 Airline Dr. and 1.3 acres at 1602 Northwood St., both easily accessible to Loop 610 and Interstate 45. The larger site housed the largest mobile home park and the only one left on the Heights' east side.
"This land was under contract in three weeks, but it took two years to close because of the complex structuring of the family ownership and boundary issues," says Dray, who represented the seller.
Prior to the sale, the Airline Drive tract had to be cleared of nearly 35 mobile homes and the park's interior road, Nadine Street, legally abandoned. The next step will be to demolish two houses at the entrance to the trailer park so the land can be prepped for David Weekley Homes' first phase of residential development – a gated urban community, totaling 78 units, with upscale amenities.
Situated in a high-barrier-to-entry submarket, David Weekley's project will be tucked between the under-construction 291-unit class A multifamily development by Dallas-based Lincoln Property Co. and Canino Produce Farmers Market, which is undergoing a $10 million makeover by MLB Capital partners into a world-class, open-air shopping destination with chef stalls, a diverse mix of vendors and gathering spaces.
"You're getting ready to see $50 million to $60 million of investment going into that section of Airline. It's a game-changer for the area," Dray says.
Dray's client had owned the land at least 40 years. The acreage isn't contiguous, but the estate had required one buyer for both sites. The NewQuest broker had a contract in hand from David Weekley Homes, which was self-represented, in less than three weeks after the land hit the market. The Northwood Street tract will be banked for phase II.
Houston Heights is one of the earliest planned communities in Texas, starting as an affordable place to live in the late 1800s and now one of the metro's priciest submarkets. It is four miles northwest of downtown. There are roughly 165,000 residents living within a five-mile radius of the Airline-Northwood tracts. The active population is pushing 407,000 because of the number of nearby employment centers.
"This was an incredibly rare opportunity to get a tract of that size in the Heights," Dray says. "Lots of people were interested in this site. Everyone knows the redesign of the farmers market will be the catalyst that will dramatically change this area."
SOUTH TEXAS LEASE
The Wonderland Suites LLC has leased 5,000 sf of retail space in Metropark Square, 8888 Metropark Dr., Shenandoah, from Metropark Square Ltd. Rebecca Le and Grace La of NewQuest Properties represented the landlord. Jaime Hinson of Texas Premier Realty represented the tenant.
SOUTH TEXAS SALES
David Weekley Homes has purchased 6.1 acres at 2100 Airline Drive and 1602 Northwood St., Houston, from the Robert Wayne Estate. Chris Dray of NewQuest Properties represented the seller in the direct deal.
CESU LLC has purchased 1.99 acres in Cross Creek Ranch, located at the intersection of FM 1093 and Cross Creek Ranch Boulevard, Fulshear, from CCR Texas Holdings LP. Ronnie Miranda and Ryan Kelsall of NewQuest Properties represented the buyer in the direct deal.
Kingston Properties Ltd. has purchased the 12,000-sf Tiki Plaza office project situated on 1.75 acres at 101 Tiki Island Dr., Galveston, from Tiki Plaza Ltd. Ronnie Miranda of NewQuest Properties represented the buyer in the direct deal.
Avighna Enterprises LLC has purchased 1.7 acres at 23300 Kuykendahl Rd., Spring, from Kuykendahl Investments LLC. Ronnie Miranda of NewQuest Properties represented the buyer. Brenda Pennington of B. Pennington Commercial Real Estate Inc. represented the seller.
NewQuest Properties, founded in 2001, is a privately owned, full-service commercial real estate firm specializing in development, land brokerage, leasing, tenant representation, investment sales and property management services. Headquartered in Houston, NewQuest owns a portfolio encompassing more than 60 retail and mixed-use projects valued at $2.08 billion and provides leasing services for more than 12 million square feet of commercial space in Texas and Louisiana.
