The Valley Ranch Opportunity Zone is Exploding in Porter, Texas

Porter, TX: The 3rd Best Opportunity Zone in Texas

Located about 25 miles northeast of Downtown Houston, Porter is an ideal North Houston Opportunity Zone. Sitting conveniently at the intersection of I-69 (US-59) and the Grand Parkway, it’s a straight shot to Downtown from Porter. Altogether, Porter Opportunity Zones are the third best Opportunity Zone in Texas. Below, we look more closely at Porter, TX and highlight current and future development in the area.


Behind Downtown and East Downtown Houston

Porter is one of the Greater Houston area’s top Opportunity Zones behind Downtown Houston and East Downtown. In Downtown Houston as well as East Downtown, developers are already taking advantage of Opportunity Zones. In 2020, Hines will complete the The Preston, Downtown Houston’s tallest residential development. Situated within an Opportunity Zone , this 373-unit luxury tower will help Downtown meet its goal of becoming more residential.

Also, in East Downtown (also known as EaDo) as well as East End, which are directly east of Downtown Houston, several new projects are taking advantage of O-Zones. Developer Kaldis plans to redevelop The Cameron, a 60,000 SF historic 1930s Art Deco-style building. Furthermore, Lovett Commercial has plans to redevelop a former Houston Post building in the Polk District. Also, Midway has created a massive plan for 150-acre East River project along the Buffalo Bayou waterfront. The walkable live-work-play environment will include residential units, dining, office spaces, retail, entertainment, and recreational areas.

Porter Opportunity Zone

Porter Opportunity Zone

Benefits of Opportunity Zones – Capital Gains

As is the case with an Opportunity Zone, this North Houston Opportunity Zone offers tax benefits for investors and developers. But what are Opportunity Zones? In brief, the 2017 Tax Reform Reconciliation Act created a tax incentive program for commercial real estate investors.

Specifically, these special investment areas provide capital gains benefits whenever investors park their capital in designated Opportunity Zones. One of the main goals of these incentives is to spur long-term economic growth. And to encourage investment, investors can receive tax benefits, such as:

  • Tax deferred capital gain when investing in a Qualified Opportunity Fund (QOF)
  • Eliminating up to 15% of the tax on the capital gain invested in a QOF
  • Possible elimination of tax when leaving a QOF investment

Altogether, Houston has 150 Opportunity Zones. Taken together, these ‘O-Zones’ represent the potential for billions of dollars in investments. If you’re interested in investing in Houston Opportunity Zones, contact CXRE today.

For a more extensive explanation of Opportunity Zone investment, read CXRE’s Houston Opportunity Zone Fund Guide: The 2019 Qualified Opportunity Zone Fund Guide for Texas Commercial Real Estate Investors

Signorelli in Opportunity Zones

Developer Danny Signorelli of The Signorelli Co. is taking full advantage of this North Houston Opportunity Zone. The Signorelli Co. is one of Texas and Oklahoma’s leading real estate developers. The company’s Valley Ranch development lies within a qualified Opportunity Zone.

Once completed, the 1,400-acre master-planned community will have significant commercial development – about 60%. The finished development will have retail, multifamily housing, office spaces, healthcare facilities, and multiple entertainment options. On top of the multifamily housing units, the community will be single-family housing units.

The Grand Parkway (99) North Expansion – from Porter to NorthEast

In Fall 2017, construction began on Sections H and I-1 of the Grand Parkway. According to TXDOT, this 37.5-mile stretch of road will be a four-lane, controlled access toll road. After approximately three years of construction, this completed section of the Grand Parkway will run from US 59 North near New Caney (just north or Porter) all the way to US 90 near Dayton.

The Grand Parkway currently passes through the northern portion of Signorelli Co.’s Valley Ranch development. The mixed-used community’s location along this major transportation artery will give residents and visitors easy access to the rest of the Great Houston area via the Grand Parkway.

Valley Ranch Connects Spring, Porter, Kingwood

Sitting on the southwest corner of Grand Parkway and Interstate 69, this Opportunity Zone sits directly on the north expansion on the Grand Parkway. As such, the Valley Ranch area serves as a connection between Spring to the west and Kingswood to the southeast with Porter in between.

Porter lies near the Intersection of I-69 (U-59) and Grand Parkway

As people gravitate towards Northeast Houston, there’s a growing demand for development, both housing as well as amenities.

As the Grand Parkway expands east, Porter Opportunity Zones are is poised to provide incentives to develop the area. Specifically, The Signorelli Co. has already begun work on its Valley Ranch development in Porter Opportunity Zones.

So as the Greater Houston area continues to grow at a rapid pace, Northeast Houston has become a center for major growth. With construction taking place all over the area, there is definitely a need for more homes, more businesses, and more amenities.

I-69 (US-59) has easy access to Downtown Houston

Situated near The Woodlands and just north of Kingwood, Porter and the Valley Ranch development are only 25 miles northeast of Downtown Houston. This means Porter is an ideal North Houston Opportunity Zone location, especially at the Grand Parkway expands eastward. Its convenient location on I-69 (US-59) provides easy access from Downtown Houston to Porter, and vice versa.

As Danny Signorelli of The Signorelli Co. says, “With Valley Ranch being the Main and Main intersection for the [Interstate] 69 corridor and the high degree of visibility and mobility, it lends itself to be and [has] proven to be a regional draw for the corridor, east and west. We are excited about what the next 15 years hold for us.”

The Valley Ranch Development

As stated above, Signorelli Co.’s Valley Ranch project will be a mixed-use development. The residential section will form the spine of the community. And the present and future amenities will mean that residents won’t need to go far from home to get everything they need. And although some Porter commercial real estate has already been developed, there is still much more to come.

Residential Homes – Single-Family and Multifamily Units

All total, Valley Ranch will have over 2,500 homes – 1,500 single-family homes and over 1,000 multi-family residences. The homes will be crafted by builders like First America Homes, Legend Homes, DR Horton and CastleRock Communities. What’s more, the homes will be priced from the $200,000s to $400,000s.

On top of that, the homes will be arranged in ‘villages’ which will be close to planned amenities like schools (New Caney ISD), shopping (Valley Ranch Town Center), and recreation (Valley Ranch Recreation Center). Also, a 135-acre and park area called The Grove will have serene lakes and trail system.

Valley Ranch, Porter, TX

Image Courtesy Valley Ranch

Retail – Valley Ranch Town Center

The 240-acre Valley Ranch Town Center will have 1.5 million SF of amenities from shopping, dining, and entertainment. Some of these amenities include a 10-screen Cinemark Theatre, retailers like Academy Sports & Outdoors, Party City, and Mattress Firm, and restaurants like Buffalo Wild Wings, Olive Garden, and Chili’s. Furthermore, Town Center will also have many service-oriented businesses like Valvoline Oil Change, Ulta Beauty, and SportsClips.

Once development is completed in this North Houston Opportunity Zone, one of Houston’s newest shopping districts will host nationally recognized names and local businesses. Not only that, but plans for Town Center include an amphitheater, splash pad, and fitness facilities. In addition, it will also have the New Caney ISD aquatic and stadium facilities.

Valley Ranch

Image Courtesy Valley Ranch

Office Space Components – Valley Ranch Commerce District

Valley Ranch’s 57-acre Commerce District will offer “unlimited versatility in design and development due to its ideal location. The 57 acre site will accommodate world-class hospitality, retail, residential, healthcare, and a broad range of amenities designed to set a new standard for sustainable, integrated development. At the moment, pre-leasing for the 4-story, 60,000 SF Valley Ranch Place, a Class-A Porter office building is already happening.

After the first two buildings are completed, there will be about 120,000 SF of office space. What’s more, these Class A office buildings will have features like expansive double-height entry lobbies, high-end common area finishes, and close proximity to Valley Ranch’s shops and restaurants. Moreover, the planned Commerce District isn’t far from George Bush Intercontinental Airport and executive housing in places such as The Woodlands and Kingwood.

Valley Ranch commerce district

Image Courtesy Valley Ranch

Downtown Boardwalk Area

In the near future, the Boardwalk are will offer even more shopping, dining, and entertainment options. This dining and entertainment experience overlook water features and green spaces. Currently, there are several restaurant pad sites available on the Boardwalk.

Valley Ranch Outlet Malls

In addition to the existing plan for Valley Ranch commercial real estate, (residential, retail, and entertainment) and the Valley Ranch office developments, the area will also host Valley Ranch Outlet Malls.

With over 200,000 SF of outlet retail, there is also over 1 million SF of dining, entertainment, shopping, hospitality, and luxury apartment homes on the drawing board.

By incorporating all of these elements, this planned community will draw shoppers, diners, and residents alike. Rather than simply a place to shop for deals, Valley Ranch Outlet Malls will be a mixed-use, interactive shopping destination.

Vivacity Medical District

On top of all of the above Valley Ranch commercial real estate projects and Valley Ranch medical office projects, the area will also have its own medical district. Vivacity Medical District at Valley Ranch will include more than 2.5 million SF of health and wellness facilities.

What’s more, these will offer a full range of services, from acute-care facilities to senior living and much more. Also, there will be medical office buildings housing all sorts of disciplines and the best-in-class clinical facilities. As the Greater Houston area continues to grow around these Porter Opportunity Zones, these Vivacity Medical District will be able to meet the growing community’s healthcare needs.

Vivacity Medical District

Image Courtesy Valley Ranch

Learn More about Valley Ranch and Porter O-Zones

As a team, CXRE knows Houston’s submarkets and Opportunity Zones. If you’re like to learn more about this North Houston Opportunity Zone, Porter, or the Valley Ranch development, contact CXRE today. Without a doubt, we can help you find what you’re looking for in North Houston.

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