Houston—Hines, TIAA Global Asset Management and the Zimmerman family have unveiled plans for the Residences at La Colombe d’Or, a 285-unit high‐rise multifamily community in the Montrose/Museum District neighborhood of Houston. Construction on the residential tower is scheduled to begin in the second quarter of 2017, with completion in 2020.
The Zimmerman family, owners of the one-acre site, have owned and operated the adjacent La Colombe d’Or Hotel for 36 years. Built in 1923, the property is a boutique hotel near the Houston Museum District. The historic structure will remain, with the hotel and restaurant undergoing a $10 million renovation and expansion in conjunction with the new multifamily project.
The project comes at a time when a lot of other multifamily developments are in the works in greater Houston, especially high-end projects like MORGAN’s Pearl Washington and Greystar’s Elan Heights. According to the Greater Houston Partnership, overall occupancy rate for apartments in the market as of April was 90.1 percent. The partnership further predicts the rate will soon fall to the mid-80s because another 21,000 units will come on the market this year, and 4,000 in 2017, many of which are Class A, high-end units.
Nevertheless, the developers are betting on the La Colombe d’Or property to attract renters. “We expect the global demand for institutional-class multifamily to remain strong and believe core urban centers will continue to attract both residents and businesses seeking proximity to amenities,” said Alex Hancock, a director on the TIAA Global Asset Management acquisitions team.
Upon completion, the 34-story Residences at La Colombe d’Or will connect to the neighboring hotel through a series of amenitized areas, including an art gallery and outdoor plaza with fireplace. Another outdoor greenspace, totaling about 14,000 square feet, is planned for part of the site. The new building will also provide 17 additional rooms for guests of the La Colombe d’Or Hotel.
JLL Executive Managing Director Tom Melody and Senior Vice President Jonathan Paine, representing Hines and the Zimmerman family, arranged the joint-venture equity for the project.
The hotel, located at 3410 Montrose Blvd., which is adjacent to the upcoming Hanover Montrose, a 30-story apartment tower being developed by Hanover Co. at 3400 Montrose Blvd.