Get ready for an influx of new apartments in Houston.
Archstone has broken ground on a new complex that will contain 474 units on the northeast corner of North Braeswood and Brompton Road. It's on the site of the former Houston Scottish Rite Temple, which was demolished in 2008 in order to make room for a developer.
(An interesting note: The enormous Brompton Court apartment complex across from the new construction was managed by Archstone a few years ago, so in many ways this is a return to the neighborhood for the apartment giant.)
In a press release, Archstone says the new luxury community will "reflect a Mediterranean flare [sic]," with five verdant courtyards, high-end amenities and spacious floor plans. Peter Jakel of Archstone says the first apartments should be ready for move-in next summer.
This complex could be the first of many coming soon to Houston. According to the Houston Business Journal:
Between 200,000 to 300,000 new apartment units are typically built each year in the United States, while another 100,000 to 125,000 older units are demolished. But only 50,000 to 75,000 units were built in 2009, and the same number in 2010. The number of units delivered in 2011 could be similar, as it takes time for developers to ramp up construction efforts."
High rents and occupancy rates in the multi-family market have combined with a stock market recovery and available credit to encourage developers to build a number of new projects to satisfy demand.
Already Hines has announced plans to build a mid-rise apartment complex near the Galleria, part of its new focus on multi-family real estate. Apartment giants Greystar Real Estate Partners and Camden Property Trust are also said to be in the planning process on new developments.
Post Properties announced last week that the company will break ground on the third phase of the Post Midtown Square, a mixed-use mid-rise development. One hundred 24 new apartments should be ready to add to the existing structures in the second half of 2012.
The Dinerstein Companies is expected to break ground by July 1 on its third Millennium apartment complex in Houston, a "boutique" complex with 237 units on McCue, just north of the Galleria. Partner Brian Dinerstein told the Houston Business Journal in April that the complex will be pedestrian-friendly and should be certified LEED Silver. The Millennium Galleria apartment are scheduled for completion in 2013.
Tell us: do you think the influx of high-end apartment complexes a good thing or a bad thing for Houston?