The possibility of twin 27-story condos for the Memorial area, developed by Azorim and managed by Boymelgreen...
http://www.chron.com/disp/story.mpl/...s/5323129.html
Nov. 22, 2007, 10:34PM
Two luxury condo towers in works for Memorial area
New York developer says demand is there
By NANCY SARNOFF
Copyright 2007 Houston Chronicle
A New York developer is planning two condominium towers on San Felipe near the tony neighborhoods of Tanglewood and Memorial.
The company chose Houston as the location for the project because of its strong economy and unmet demand for luxury high-rise housing, development executive Sara Mirski said.
Plans for the 5.4-acre site, at the corner of San Felipe and Woodway, include two towers with 27 residential floors and a total of 223 condominiums surrounded by lush landscaping and fountains.
The project is being developed by Azorim, an Israeli real estate firm whose shares trade on the Tel-Aviv Stock Exchange. Brooklyn-based Boymelgreen Developers, whose founder owns 64 percent of Azorim, is managing the pro- ject.
Sales will begin next fall on the units, which will start at $1 million and average 2,500 square feet.
A sales center will be built across from the building site, which now houses a cluster of low-rise commercial structures.
In recent years, other developers have tried to hawk similarly priced units, but their buildings never came out of the ground.
The developers gave various reasons for the cancellations, including market uncertainties related to Hurricane Katrina and slow unit sales.
Turnberry, a Florida developer, recently began preselling condominiums in a building proposed near the Water Wall at Williams Tower with units ranging from $1 million to more than $8 million.
The company is taking a patient attitude about sales.
"We're off to a good start," Turnberry's Jim Cohen said. "We know we're not going to sell the building over- night."
Turnberry has secured sales contracts on about 25 of the 184 units in a little over two months, Cohen said, adding that foundation work should start in the first quarter of next year.
Many of the buyers are from South America, Europe and the Middle East.
"We didn't realize how deep that market is," Cohen said.
Averaging just under 3,000 square feet, the units are "decorator ready," meaning they're not entirely finished out. Bathrooms and kitchens, however, do come finished.
Mirski said the development of the Azorim project is not dependent on preselling a portion of the units, which will all come completely finished.
"We believe in the product," she said. "We're willing to move forward without sales."
The design of the project — which has not yet been named — sets the towers back from the street. After passing a manned guardhouse, residents will drive up an ascending path to the buildings that will be connected by a centralized service area where they can leave their cars with a valet.
To allay potential concerns from nearby residents, Mirski said, the buildings were designed so their shadows won't be cast on the single-family neighborhoods.
The buildings are also oriented so their narrowest sides are exposed to the western sun, which is expected to reduce energy costs.
An 18,000-square-foot amenity building — closed to the public — will include a fitness center and spa. Swimming pools will be throughout the property.
Houston-based Ziegler Cooper is the project architect, and the developer is seeking national certification for environmentally friendly buildings.
Mirski expects the project to appeal to empty nesters, including residents of the adjacent neighborhoods who want to downsize and minimize required maintenance of their homes without sacrificing design or the feeling of being in a natural environment.
Almost 2 acres are being reserved for open space as an environmental buffer between the site and the neighbor- hoods.
Maintenance fees will be comparable to other high-end buildings.
The project is unusual for Houston because its acreage is so substantial for a high-rise development, said David Joachim of International Realty Concepts, who is familiar with the plan.
"There's never been anything like it here because of the grounds," he said. "And it's going to have amenities like a country club would."
Boymelgreen has developed residential, mixed-use and retail properties in New York, Toronto, Las Vegas and Miami. The company has developed more than 5 million square feet of space in New York City alone.
When it entered the Houston market, its development plans included more than the San Felipe project.
The company owns about 9 acres near Richmond and Post Oak that it acquired for $34 million. The land is now under contract to another buyer for $57.5 million