GID Development Group has broken ground on the eight-acre second phase of its mixed-use Regent Square project in Houston that will feature 600 units of luxury multifamily housing. The development, slated for completion in 2021, will include 50,000 square feet of retail and public areas including a pedestrian promenade.
The new apartments will have floorplans ranging from studios with separate sleeping alcoves to three-bedroom units. The residential building will also have 60,000 square feet of exterior and 16,000 square feet of interior amenity space.
The development is designed by CBT, a Boston-based architectural placemaking firm, in conjunction with OJB Landscape Architecture of Houston. Arch-Con is the general contractor and JLL is overseeing retail leasing. The retail space is expected to be ready for tenants in the first quarter of 2021 and the residential leasing and project completion is scheduled for the third quarter of 2021. The property will also have two activated green spaces, a signature water feature, pedestrian promenade and three free-standing restaurants with roof decks.
Situated at West Dallas and Dunlavy Streets, the property is steps from Buffalo Bayou Park and the eastern gateway to River Oaks and part of the in-demand Allen Parkway corridor. The urban-infill project is the next phase of GID’s multi-phased master plan for Regent Square, which will ultimately span 24 acres along West Dallas Street between College Memorial Park and Waugh Drive.
The Sovereign at Regent Square, the first phase and eastern anchor, was completed in 2014. The 21-story luxury residential building has 290 units.
Houston Multifamily Market
Steady employment has improved Houston’s economy and boosted the multifamily market. Houston gained 82,900 jobs in the 12 months ending in June. Additions to the professional and business services have helped the slowly recovering office market.
Hit hard by Hurricane Harvey in 2017, about half of the 239 projects planned under Harris County’s $2.5 billion flood bond package are underway, according to Yardi Matrix’s summer 2019 multifamily market report.
Other big projects include a $1.2 billion upgrade to the area’s airport and a 37-acre expansion of the Texas Medical Center. All the activity helped the multifamily market with more than $5.1 billion in assets trading hands last year, setting a new record.
Following two years of intense development, the rate of deliveries has moderated. Still, the increased construction led to an occupancy drop of 90 basis points on stabilized properties resulting in an occupancy rate of 92.7 percent as of July. Average rents are expected to rise about 1.9 percent this year, according to Yardi Matrix data.