HOUSTON- Months after breaking ground on the 314-unit 1400 Hi Line in Dallas, PM Realty Group and partner INDURE Fund are on their next quest: To build a luxury high rise and accompanying ground-floor retail on a 2.6-acre infill site adjacent to the high-end River Oaks neighborhood.
To that end, the partnership recently bought the acreage at West Alabama and Wesleyan Streets from condominium developer Giorgio Borlenghi with Interfin Cos. LP. The plan is to develop a 250-unit luxury apartment complex, with 12,500 square feet of retail. “As Giorgio said, and we agree, now’s not the right time to build condos, which is why he sold,” comments Bryant Nail, PMRG’s senior vice president of development. “He’s not a multifamily developer.”
PMRG of Houston and Washington DC-based INDURE are multifamily developers, however. Groundbreaking on the project, which doesn’t have a name as yet, is scheduled for spring 2012, with construction anticipated to last 24 months.
Though construction has all but stalled in certain real estate sectors, when it comes to multifamily, a lot is coming out of the ground. PMRG’s executive vice president and chief financial officer Roger Gregory says infill multifamily construction is even more important these days, as migration is moving into the city cores, rather than away from them.
“We believe that cities such as Houston and Dallas, which have been expanding for many years, will start becoming more dense,” Gregory says. As a result, infill areas such as those in the River Oaks district in Houston, as well as the lower Oak Lawn district in Dallas, become more valuable to developers. “The goal here is to build a project that is truly a live-work-play project; close to people’s work, close to retail, close to restaurants, close to activities,” Gregory adds.
Nail and Gregory tell GlobeSt.com that more of such developments through PMRG and INDURE could be on tap. The JV has a site under contract in Denver, and hopes to close by year end. After that, no more land purchases, at least for now. “Right now, we’re focused on Dallas, Houston and Denver,” Gregory notes.
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