841 Yale Pays Homage to The Heights’ Origins
Conceived as a new landmark, 841 Yale provides a nod to the turn-of-the-century origins of The Heights with craftsmen masonry and brick patterns plus arched metal windows in its first two stories.
HOUSTON—Marking Allegro Builders’ first commercial development in the area since 2008, the company recently broke ground on 841 Yale. Allegro anticipates delivery of the nearly 8,400-square-foot three-story mixed-use project in the third quarter of 2019.
Leasing of the flex space, which would be suitable for both restaurant and office users, is being managed by Chris Williams of Heritage Texas Properties’ recently formed commercial division.
“Community is key to The Heights and as a company that also shares a longstanding base of operations here, we’re excited to market a property that speaks to the past and future of this unique urban enclave with a scale, finish and functionality that we feel will resonate with discerning residents, as well as the distinctive businesses looking to have a presence here,” says Williams.
Occupying a city block halfway between Height Mercantile and the bourgeoning 11th Street–home to new venues such as Calle Onze and soon-to-debut Heights Central Station–841 Yale offers visibility and access by car, foot and nearby hike/bike trail. Adding to the pedestrian qualities of the site and area is the street-front orientation of the structure across the 13,199 lot with secure parking at the rear, accessed off of 9th Street.
“The facade mirrors the evolution of The Heights and our own aesthetic since we began investing in this area 20 years ago,” said Natacha Leonards-La Francesca of Allegro Builders. “We’ve always looked to the history and workmanship of the neighborhood for inspiration when building here, and in the past decade, as we began working in other areas, we’ve often stretched comfortably into a very contemporary vein. At 841 Yale, we wanted to bridge those two worlds to create something truly sophisticated and standout–and with an element of whimsy that is also very much in keeping here.”
Conceived as a new landmark, 841 Yale pays homage to the turn-of-the-century origins of The Heights with craftsmen masonry and brick patterns plus arched metal windows in its first two stories, while the partially cantilevered top floor brings the building into the modern world with dark metal cladding and cut-out balconies with glass railings.
“The diverse and eclectic nature of the commercial development in The Heights really speaks to how robust the Houston market is and why investors from around the globe are clueing in to the vast opportunities we hold,” Williams tells GlobeSt.com.
The interiors, which are serviced by an elevator and two sets of stairs, offer various opportunities for customized configuration thanks to open floorplans, extensive use of floor-to-ceiling windows and high ceilings throughout. The 2,441-square-foot first level is suitable for a retail, café or salon tenant with a glass storefront incorporating two entrances, while the 2,460-square-foot second level and 3,478-square-foot third story lend to medical or creative workspace needs.
In addition to dozens of prominent custom homes and remodels in The Heights, where it is known for its gentrification projects, Allegro Builders is also responsible for the boutique mixed-use project where it’s headquartered at 1001 Studewood, plus nearby 933 Studewood, which includes tenants such as BCK restaurant. The neighborhood-based design-build firm, Allegro Builders, was founded by Lambert Arceneaux in 1997.
Houston’s overall retail vacancy rate decreased slightly to 5.4% in third quarter 2018, unchanged quarter-over-quarter and year-over-year. Net absorption skyrocketed by more than 225% to 1.4 million square feet as of the quarter’s end, following the previous quarter’s 440,000 square feet, and 75% higher than year-over-year’s 820,000 square feet. In addition, metro Houston leasing activity is at 1.5 million square feet, down marginally from the previous quarter, and down 16% from a year ago at 1.8 million square feet. The retail market had overall average asking rates increase yet again by $0.23 per square feet quarter-over-quarter to finish at $17.15—surpassing last quarter’s all-time high—on a triple-net basis. A year ago, average rates were at $16.29, representing a 5.3% increase, according to NAI Partners.
The NAI Partners Sublease Index—measured by the amount of office sublease space as a percentage of total available space—registered at 14.6% nearing the end of October. Space currently being marketed for sublease represents 8.837 million square feet, compared to this time last month at 9.045 million square feet, a decrease of 2.3%. With the net change in available square feet at such a minimum, minor rate fluctuations up and down are not particularly significant. More noteworthy is the 27.4% drop in sublease availability since the third quarter of 2016, when it reached its high point of 12.2 million square feet. The current index continues to reflect the lowest measured rate since it was at 13.4% in first quarter 2015—two quarters after the start of the oil downturn when the index registered at 9.4%, according to a third quarter report by NAI Partners.