Best known as a hub for valve manufacturing companies, the Houston submarket of Stafford maybe be flowing in a new direction.
With the idea to create an urban center for the city, Dallas-based StreetLevel Investments recently purchased 192 acres near Interstate 69 that included the former Texas Instruments campus.
The firm plans to utilize the land for a $500 million mixed-use development that will feature a mix of “destination” retail space, residential units, office space and several hotels; along with green and entertainment space. The first phase is slated to open by summer 2017.
The estimated 2,400 residential units proposed are likely to be rentals, as Stafford’s single-family market accounts for a minimal number of annual resales.
Spanning a recent 12-month period, only 290 homes sold in the city, according to data from Better Homes and Gardens Gary Greene. This sales total equates to less than 25 sales a month.
The addition and lease-up of 2,400 multifamily units would definitely spike the city’s population, which currently sits just below 18,000 people.
As part of the development, portions of the original Texas Instruments buildings will be preserved and repurposed, with the developer likely to receive some historic tax credits.
The repurposing of well-known Houston buildings is something StreetLevel’s joint venture equity partner, Dallas-based Provident Realty Advisors, is familiar with. The real estate investment firm is currently part of a deal that will convert the old Texaco Building in downtown Houston into 300 rental units.
Mixed-use development is part of Houston’s retail construction trend
The addition of roughly 350,000 square feet of retail in Stafford will add to the estimated 4.53 million square feet of new retail shopping center space that will be built and opened in the greater Houston area this year.
According to Houston-based Wulfe & Co.’s annual retail survey, submarkets near State Highway 99/Grand Parkway have the most to-be-delivered retail projects. These submarkets include Stafford’s neighbor to the southwest, Sugar Land.
