Mixed use properties are popular among tenants and investors alike, and there are at least 20 of these developments in the pipeline around Houston. But what is a mixed-use property, and how can CRE investors take advantage of this new real estate trend?
What is mixed-use property?
Essentially, any building or development that mixes together residential, commercial, or industrial spaces fits the definition of mixed-use property. Most often, mixed use properties combine residential unities, such as apartments, with commercial office space.
A downtown shopping area with apartments above, an apartment building that also includes office space, and a planned community with homes and businesses side-by-side are all examples of mixed-use property.
Regardless of the specific form, mixed-use projects cater to the growing desire for people to be able to walk from their home to shopping centers, restaurants, entertainment and other amenities.
Mixed-Use Developments in Opportunity Zones
Currently, several mixed-use projects are in the works within Houston’s opportunity zones in the EaDo (East Downtown) and East End areas. For example, The Cameron (711 North Milby, a 60,000 SF Art Deco-style building), was transformed into a mixed-use development by Kaldis in late 2019.
Another mixed-use area in the works is the East River site, which Midway plans to develop into a walkable neighborhood where residents can live, work and play with a variety of residential units, office space and retail, restaurants & entertainment.
About 25 miles northeast of Downtown Houston, The Signorelli Co. will transform Porter, TX’s North Houston Opportunity Zone into a 1,400-acre master-planned community. The 240-acre Valley Ranch Town Center is already open, with private residences under construction for the next phase of this large undertaking.
Other Houston Area Mixed-Use Properties
Those are just a few major mixed-use developments within Houston’s opportunity zones, and there are dozens of others that are being planned and developed in the area.
Situated in Houston’s Upper Kirby District, Midway will develop this 11-acre, multi-building complex in two phases. Phase I has already been completed with 270 residential units, 25,000 SF of retail, 225,000 SF of office space, and a 6-acre urban park. Phase II is planned to add an additional 200,000 SF of office space into this sustainable mixed-use environment.
GID Development group finished their 21-story Sovereign at Regent Square residential project in 2015, and plan to add even more housing and amenities. Situated on 24 acres near the border of Montrose and River oaks, Phase II of this mixed-use property will add 600 residential units, 50,000 SF of street-level retail, and green space near Buffalo Bayou Park.
Planned to open in early 2020, this development will combine 100,000 SF of retail spice with 100,000 SF of offices. While this mixed-use development does not include any living space, it will feature a 2,000-foot urban boardwalk running through several acres of parks. Currently under construction, this 12-acre redevelopment project is Radom Capital and Triten Real Estate Partners’ second Houston project after Heights Mercantile.
Completed in fall 2019, Ziegler Cooper Architects designed the seven-story Buffalo Heights project for owners BKR Memorial (the Gordy family). The property features 230 residential units, 35,000 SF of office space, and a 96,000 SF urban H-E-B supermarket.
With 99 residential condos, The Allen is a luxury development combining 333,000 feet of retail and office space and a high-end hotel views of both Downtown and Buffalo Bayou Park. The $500m project is a joint venture between Houston-based DC Partners and Tianqing Real Estate Development LLC and is currently in pre-development.
River Oaks District
Once completed, this two-phase project will consist of 100 residential units, 200,000 SF of retail (90,000 SF Phase II), and 200,000 SF of office, a movie theater, and more. Oliver McMillan is the developer behind Phase I of this mixed-use property. Brookfield is behind Phase II.
Park Place River Oaks
Currently under construction, Park Place River Oaks will feature 207,000 SF of office space along with a hotel, 1-acre park and additional retail space. Stonelake Capital Partners is the developer behind this Houston mixed-use development.
The Driscoll at River Oaks
Located within walking distance of River Oaks Shopping Center, this 30-story luxury high rise will have 318 residential units of 10,000 SF of retail space with views of the Downtown Houston skyline. Developed by Weingarten Realty and The Hanover Co., The Driscoll should deliver in summer 2020.
The Ion Innovation Hub
Once completed, The Ion will have 270,000 SF of residential property, 280,000 SF of office space and a yet to be determined amount of retail space, restaurants, and other amenities. As the future hub of the Houston Innovation District, this redevelopment project could be a game-changer.
The Houston Innovation District will stretch four miles from Downtown to the Texas Medical Center. The Ion has been under construction since breaking ground in July and is expected to open sometime in late 2020. The firms behind the project are James Carpenter Design Associates, SHoP Architects, James Corner Field Operations, and Gensler.
Investing in Houston Mixed-use Development
The popularity of mixed-use properties in the Houston Metro Area provides a wealth of opportunities for investors. Whether these are located in developed areas (like East Downtown) or in suburban areas (like Porter, TX), developers are banking on their popularity.
If you’re interested in learning more about Houston mixed-use development, contact CXRE today. Our team of Houston experts can guide you towards investment or leasing opportunities.