Now, investors have a new focus for commercial real estate investing in Houston – to the east of Downtown Houston. As a result, major developments in two areas could completely change the face of the communities. On June 4, investors and local developers will meet in Houston to discuss the future of EaDo and East End District.
EaDo (East Downtown) and East End, both directly east of Downtown Houston are only minutes from the Toyota Center, Minute Maid Park, the Texas Medical Center, the Houston Ship Channel, and Greenway Plaza. What’s more, BBVA Compass Stadium is in EaDo. Specifically, some sites lie within qualified Opportunity Zones (O-Zones), a major incentive for commercial real estate investing. Overall, Houston has 150 O- Zones which offer investors commercial real estate tax benefits like deferred capital gains tax on commercial real estate and tax-free growth for a certain amount of time.
Once completed, several of the projects will transform existing infill buildings into mixed-use properties. What’s more, these projects will hopefully boost commercial real estate investing in Houston. For example, below are four projects which are in various stages of development in EaDo and East End.
1. The Cameron
Last November, developer Kaldis acquired The Cameron, a 60,000 SF Art Deco-style building. Located at 711 North Milby, Kaldis also purchased adjacent parcels (1000 North Milby and 3905 Rusk). Originally constructed for Cameron Iron Works, Kaldis plans to revive this historic 1930s building.
Slated to open this coming fall, once completed, this mixed-use development will make additional room for local professionals and creatives. Altogether, Harris County values the combined properties at $2.2M.
2. Polk District
Lovett Commercial has plans for this former Houston Post building. Situated at Polk Street and Emancipation Avenue, the planned project will convert the existing three-story into a CVS with a pharmacy and drive-thru. In addition, Lovett’s Polk District project also proposes a new 30,000 SF building.
In brief, the pedestrian-friendly redevelopment project will also have space for retail, a café, and office space, and entertainment concepts. Also, on the drawing board are plans to include a grocery store (Sprouts Farmers Market).
3. East River/ Midway Sites
Acquired in July 2016, Midway’s redevelopment of this area will happen in five phases. Overall, the plan is to create a multi-use community with residential space, restaurants, office space, retail, entertainment, as well as recreational spaces. Located in an Opportunity Zone, the end goal of this multiphase, mixed-use project is a walkable live-work-play environment. According to Midway’s marketing materials, the completed project will include:
- 8.9 million SF of Class-A office space
- 500,000 SF of retail space
- Over 1,400 multifamily units
- More than 475 single-family homes
- Over 12 acres of green space
Although this project is still in pre-development, Houston-based developer Midway has already invested significant resources into the planning phase. Indeed, Midway is staking a lot on East End’s future. What’s more, many people are already excited about this 150-acre East River project along 6,000 feet of the Buffalo Bayou waterfront.
In addition, Midway owns two properties on Canal Street and Navigation Boulevard. Furthermore, Midway plans to sell a 6.24-acre infill development site, which is also situated in a qualified Opportunity Zone.
4. Navigation Place
Houston-based Ersa Grae Corp. broke ground in April on this single-story, two-building retail development. Purchased from W. W. Gage Investment LLC, in December 2016, the 1.8-acre tract previously held a now-demolished warehouse.
With two tenants already signed on (Memphis-based Corky’s BBQ and Allegiance Bank), Navigation Place still has 9,000 SF of leasable space. Allegiance will have a 4,500 SF space with a two-lane drive-thru. Moreover, this will be Corky’s second Houston-area, the first of which is in Katy.
What’s more, potential tenants for this retail center could include an additional restaurant, service-oriented retail, and a fitness business. In addition, the property has space for four more concepts. Located at 2929 Navigation, the property should be completed by October.
Learn About Commercial Real Estate Investing in Houston
Without a doubt, Opportunity Zones offer a number of tax benefits of owning commercial real estate. Consequently, now is an excellent time to investigate Houston’s investment potential. If you are interested in investing in Houston commercial real estate, contact CXRE today for more information.