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    Real Estate Rumblings

    Vacation home sales surge as buyers seek fun and a good investment

    Ralph Bivins
    Jul 7, 2015 | 10:43 am

    Sales of vacation home sales are surging across the nation as Americans seek out their own place for a family retreat, a regular vacation spot or a place to ski, sail, fish or hike.

    Vacation home sales were up a whopping 57 percent in 2014 over the sales of 2013, according to a national report by the National Association of Realtors.

    “Vacation home sales are skyrocketing,” says Dallas-based journalist Candy Evans, a CultureMap contributor and founder of CandysDirt.com and Secondshelters.com. “Vacation home sales have shown astounding growth. I get 50 emails a day from developers with new projects that are coming up.”

    “Vacation home sales have shown astounding growth," says Candy Evans. "I get 50 emails a day from developers with new projects that are coming up.”

    Evans, who moderated a vacation homes panel in Miami at the National Association of Real Estate Editors Conference, says the surge is driven by “The One Percent” – affluent households who have done well in the stock market in recent years.

    “The wealthy got even wealthier since the recession of 2008,” says John Klemish, broker in-charge at the upscale Greenbrier Sporting Club resort in West Virginia.

    The buyers at the ultra-luxe Greenbrier often pay all cash and the typical buyer there has at least three or four other houses, says Klemish.

    The massive Baby Boomer generation is supporting the surge in the vacation home market as they acquire vacation homes now and plan to convert them to their primary residences after retiring.

    The top choice for vacation home buyers is the beach, according to the National Association of Realtors Vacation Home Buyers Survey.

    Last year, 40 percent of vacation buyers purchased in a beach area, 19 percent purchased in the country and 17 percent purchased a vacation home in the mountains. The average buyer purchases a vacation home that is 200 miles away from his/her primary residence.

    Foreign buyers are also supporting the vacation home boom. Owning real estate in a country with a stable economy can be an appealing haven to affluent people from other parts of the world.

    The top choice for vacation home buyers is the beach, according to the National Association of Realtors Vacation Home Buyers Survey.

    “We’ve seen a huge desire for real estate from flight capital,” says Phillip Day, an executive with the IMI vacation realty company in Greenville, S.C. “We see a lot of people from Europe and South America.”

    The ability to get rental income by renting out a vacation home is attractive, says Jon Gray, chief revenue officer at Austin-based HomeAway, an online marketplace that connects renters with vacation home owners.

    The owner of a vacation home gains $28,000 a year, on average, by renting out their vacation home, Gray says. Many vacation home buyers can cover half, or even three-fourths of their mortgage payments with rental income, says Gray, a panelist at last week’s NAREE conference.

    Orlando Realtor Chris Cain, author of “Your Made in the USA Vacation Home” says the investment aspect of vacation home buying is huge. And it is appealing to a cross-section of buyers, not just the ultra-rich.

    “If your primary residence is the best investment of your life,” says Cain, “why not buy a vacation home, too?”

    Ralph Bivins, former president of the National Association of Real Estate Editors, is founding editor of Realty News Report.

    South Padre Island beach homes. The top choice for vacation home buyers is the beach, according to the National Association of Realtors Vacation Home Buyers Survey.

    South Padre Island beach homes
      
    TexasGulfCoastOnline.com [https://www.texasgulfcoastonline.com/News/tabid/86/ctl/ArticleView/mid/466/articleId/169/Default.aspx]
    South Padre Island beach homes. The top choice for vacation home buyers is the beach, according to the National Association of Realtors Vacation Home Buyers Survey.
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    River Oaks District Preview

    Sneak peek: River Oaks District promises luxe shopping, lots of valet parking and boulevard strolling

    Clifford Pugh
    Jun 30, 2015 | 8:37 pm
    Sneak peek: River Oaks District promises luxe shopping, lots of valet parking and boulevard strolling
    Photo by Clifford Pugh
    Nancy Marcus Golden shows how to dress for a hard hat tour of the River Oaks District.

    With about two months before tenants start moving into the new River Oaks District, the luxury mixed use complex on Westheimer just inside the West Loop is starting to take shape. It's far enough along that developer OliverMcMillan invited reporters and other guests to take a look on Tuesday.

    While the center, which combines upscale retail and dining options with luxury apartments and offices, still has a way to go before completion, its ambitious goal to create a gathering spot for Houstonians is close to being realized.

    "We really want the experience to be on the ground, on the sidewalks...lots of landscaping, pedestrian activation, get people to intermix with the restaurants and the retailers."

    "One of the things that we work work very, very hard on is the experience of what the River Oaks District is all about," said Jeff Ziegler, senior managing director for leasing. "You can live in an apartment, get a workout at Equinox, catch a movie at iPic, have an outdoor dining experience at Toulouse or finish your evening with a cigar at Davidoff. There’s multi uses, multi-experiences and that’s what we’re going to deliver."

    Although the center looks a bit off-putting from Westheimer with all the construction work going on, inside it's much more inviting, with a wide central boulevard featuring big oaks trees, lush landscaping and 15-foot-wide sidewalks meant for — gasp! — strolling in Houston.

    "We really want the experience to be on the ground, on the sidewalks...lots of landscaping, pedestrian activation, to get people to intermix with the restaurants and the retailers," said senior managing director of development Greg Wattson.

    Main attraction

    The main attraction is the abundance of luxury retail boutiques — 295,000 square feet of retail space. At one intersection at the heart of the shopping area, a 6,000-square-foot Cartier store sits across from a 10,000-square-foot, two-story Hermés on one corner and a 9,500-square-foot, two-story Dior boutique on another corner.

    Officials are targeting an Oct. 1 opening for many of the stores, although Cartier is slated to relocate from its temporary Post Oak location in early September and iPic has set an opening date of Oct. 30, just as the big holiday releases hit theaters.

    Officials are targeting an Oct. 1 opening for many of the stores, although Cartier is slated to relocate in early September and iPic has set an opening date of Oct. 30, just as the big holiday releases hit theaters.

    Ziegler says there are more big retail names to come, most with a local bent. Thus far, the line-up largely consists of big name international designers, including Akris, Roberto Cavalli, Tom Ford, Stella McCartney, Chopard and Van Cleef & Arpels.

    "The retailers, both nationally, regionally, locally and certainly globally, are very excited about the brand image they are going to be able to portray here in Houston. And specifically at River Oaks District," he said.

    Most of the retail businesses and restaurants are on the first floor of seven buildings, with Equinox gym, the iPic theaters and offices on the second floor. On the west side of the property, 279 luxury apartments will be available for rent in a building called The Grey House. (All power lines are underground.)

    The potential of the Mexican and Latin American customer has helped lure high-end retailers, Wattson says, noting that 30 percent of Houston retail sales are to customers from south of the border. "Houston has always been an attractive city for international visitors. The proximity to Latin America has always been attractive to the high-end retailers. And the energy industry has provided a great climate for business. These things combined have been a blessing for retailers, especially high-end retail."

    Ziegler notes that some retailers still don't fully comprehend that Houston is the nation's fourth largest city. "When we tell people that they kind of look at us quizzically and can’t believe there’s that kind of population density and affluence here. It’s a real attention getter," he said.

    The big parking issue

    The big question on many Houston shoppers' minds is: Where do I park?

    Ziegler says there will be five valet stations located throughout the complex; it will be possible to drop your car off at one location and pick it up at another and also have packages delivered to your vehicle.

    There will be five valet stations located throughout the complex; it will be possible to drop your car off at one location and pick it up at another.

    A five-story parking garage with 1,800 spaces is only a short walk about from many stores. Each garage floor will have a digital sign that details the number of parking spots available, similar to the layout at Bush Intercontinental Airport, and every parking space will have a red light, indicating a space is taken, or a green light, signaling it’s open, much like the parking garage at the Whole Foods Market in BLVD Place.

    The parking garage will have glass-enclosed elevators and all floors are level to make it easier to walk if you're in high heels. Canopies and fans will provide some relief from the heat as shoppers walk to stores from the garage.

    The developer has also carved out a back street called Bettis Avenue that provides for access to San Felipe via Midlane, to help make access easier and help traffic flow.

    "Our whole goal is to make you feel comfortable and want to stay here all afternoon or evening. It’s always gracious and that’s what we are going to try to deliver," Watson said.

    "We’ve got a lot of work to do but we feel really confident and we’re tremendously excited about it," Ziegler said.

    Nancy Marcus Golden shows how to dress for a hard hat tour of the River Oaks District.

    Nancy Marcus Golden at the River Oaks District hard hat tour
      
    Photo by Clifford Pugh
    Nancy Marcus Golden shows how to dress for a hard hat tour of the River Oaks District.
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