Redstone, Hines Bet Big on Uptown Houston

By Georgiana Mihaila, Associate Editor

Hines has announced the estimated starting date for an Uptown luxury apartment complex that exemplifies its efforts to expand its multifamily business nationwide. The locally based national real estate developer first announced intentions at the beginning of the year to build what will be a “flagship” property that will stand on three acres of land right next to its own Williams Tower, Galleria mall and Gerald D. Hines Waterwall Park. That location plus the growing demand for apartments make the developer confident in its success.

Although the details of the project have not yet been set, Hines senior vice president Alan Patton estimated that the starting date will be within the first quarter of 2012, with a completion date set two years later. The property was to host another high-end condominium tower, but previous developer Turnberry called off the project in 2008, following the economic downturn. Instead, Turnberry sold the land back to Hines, which had previously owned it while developing the Galleria; the amount for which the land traded has not been disclosed. The complex will stand no higher than six to eight stories and will consist of around 300 luxury units.

Redstone Real Estate also has big plans in mind for the 6.5-acre site it owns along Post Oak Boulevard. According to the Houston Chronicle, the owner of Houstonian Hotel, Club & Spa plans on expanding its brand near the Galleria, not far from its original complex. The lifestyle hotel with spa and fitness components will have 150 to 250 rooms and a modern urban feel.

This constitutes the second phase of the project Redstone has lined up for the Galleria area: The first one is a 318,000-square-foot office building developed for the BBVA Compass bank, for which Redstone formed a joint venture with Stream Realty Partners LP. Set for completion in April 2013, the facility set on Post Oak, between Westheimer and San Felipe, will house 800 BBVA Compass employees, as the bank is leasing 150,000 square feet of the building.

Phase III might consist of another office building or a residential component, but Redstone is currently exploring all options.