| by Kenneth Chase | 4 comments

Houston Real Estate Market Analysis Tour


[Dave] Is that where turducken comes from? [Matt] It is, actually. [Dave] It’s 9AM. 6 o’clock flight. Got a lot of caffeine in me, feeling
better now. We’re in an area called East Houston right now. We believe East
Houston is the next area of growth. We’re going to start here, and then right after
East Houston we’re gonna check out an area called The Heights which is just
northwest of downtown. Later on today we’re gonna drive right past the
Galleria, another very mature market in Houston, and we’re gonna end up in an
Energy Corridor. We believe it’s an area that’s going to grow very rapidly. We
really feel like Houston is set to snap back and we want to be an investor in
this area. We own here now. We have people covering it on a daily basis, and we want to add to our portfolio so that’s what we’re here to do today. I’m gonna bring in my
colleague Matt Ozee who runs our Houston operation, and our Texas operation in
fact, and he’s going to take you through some of these sub markets and why we’re
excited about them. Bring it on in Matt. [Matt] Hey Dave. [Dave] How you doing my friend? [Matt] Good to have you here. [Dave] So Matt, describe where we are right now. [Matt] Yeah,
Dave we’re just east of CBD Houston. One mile directly from the
heart and center of it. In East Houston is really divided by two
neighborhoods, or defined by two neighborhoods, so on the north side of
East Houston its East End and that’s where we are today. On the south side
it’s called EaDo today. Both are markets that we like, both are in East
Houston, both are in the path of growth. But the site that we have right here is on the north end and why we like it as you can see, being close to downtown
looking backwards – great views of downtown. The Houston skyline at night lit
up. it’s beautiful. So that’s kind of where we are, and some of the drivers
that have moved East Houston just in general is originally that MLS
soccer stadium built. That’s on the south side more in EaDo.
On the north side now the Midway Companies which is a prolific
developer out of Houston, they have a 150 acre mixed-use site just north of us
that is going to be full mix of retail, residential, green spaces, walkability… and we’re gonna get the benefit of that
site being this close – less than a half a mile, but also not being in the
construction of that over the next couple years. [Dave] And they’re already breaking ground
over there. [Matt] They are. [Dave] We’re standing on a site in a qualified Opportunity Zone as
well. To be clear there’s 8700 qualified Opportunity Zones across the country. We
only look for development sites in the ten cities we cover, we don’t want to be
what we call “out of town stupid” meaning we don’t really understand what’s going
on. That doesn’t happen. We have people that live in the region and work in the
region. [Matt] Three or four years ago when I started looking at East Houston as an
opportunity to invest I didn’t know what a qualified Opportunity Zone was. [Dave] It didn’t exist. [Matt] Didn’t exist. And so we were already seeing the transitioning
happening over here into the path of growth. And with our normal
equity buckets, or normal investment vehicles we were out chasing
opportunities here to take advantage of people wanting to be in this area. And so as a part of getting in the path of growth, that’s something that
we’ve always done. Fast forward to today qualified Opportunity Zones
were created and it just so happens to overlay and intersect with our
business plan and targeted sub markets. [Dave] This is an interesting site and
we’re super excited about the deal. That said, it’s not fully approved until we
get through this process and we’ll ultimately make that decision at
that point. [Dave] All right Matt, we’re heading north. We’ve now left East Houston. Where are we heading? [Matt] Yeah, we’re
heading to The Heights, so we just exited and now we’re on Heights Boulevard. The
Heights was an old historic neighborhood that kind of went through its ups and
downs and then about 10 years ago it really started transforming again where
people started coming in buying these smaller older homes fixing them up. To where it is today in the last few years of adding great
brand new restaurants, and re-purposing gas stations into… [Dave] What
in the….? I just got attacked by the rental car. [Matt] I hope that doesn’t come out of my deposit. You know, 10 years ago these homes were
$200,000-300,000. Today those homes are… …the land is worth more than that.
The lot prices alone, an average lot is half a million
bucks and people are ripping those homes down and building multi-million
dollar homes now here. So it’s a huge transition of where it’s been, and
you can just look: it still has the charm of an old neighborhood with sprinkled in
brand-new development. [Dave] You know the last time we were down here we went to this
awesome sandwich place. [Matt] Yes, Carter and Cooley, it’s like a
staple in Heights [Dave] They had literally 15 different sandwiches I wanted [Matt] They had 15 that you wanted and there was a hundred to choose from. [Dave]
Maybe I’ll get more than one… [Matt] I think three. [Matt] So Dave what did you think about that lunch?
[Dave] You’ve got to remember I woke up at 4 so it’s really like 4PM you know
on a relative basis I knocked down probably two lunches at
that point. [Matt] We’re heading west now on I-10 towards the Energy Corridor right
now to go take a look at a couple of opportunities. The funny thing about
Energy Corridor is although it is dominated by energy and energy related
businesses there still is other presence here. For example the Texas
Medical Center’s West Campus is actually right intertwined with Energy
Corridor, so it’s come a long way from where Houston used to be. [Dave] Terrific and
the reason we like the Energy Corridor, Historically, it does correlate with the price of oil and it is a little bit more volatile, but right now
we feel like it’s coming off the bottom of three or four years of very
low rent growth. Oil stabilized, we actually feel like it’s probably a good
time to be buying. [Matt] Now we’re about to go take a look at a couple live ones that
were chasing as we speak. [Dave] Terrific. We’re signing off from Houston. We
spent a lot of time in East Houston checking out our qualified Opportunity Zone developments. Talked about the catalysts there. Then we had a great
drive through of The Heights, got to know that neighborhood again. We’re tracking
that market, but it’s it’s probably a little bit high cost in terms of what
we’re willing to pay for properties right now. From there we went on, drove
through, and then on to the Energy Corridor, so we’ve had certainly a full
day and Matt thanks for hosting [Matt] You bet. [Dave] Appreciate it. [Matt] Good to see you as always. [Dave] We’ll see you again soon.

4 Comments

Jacob Garcia Realtor

May 5, 2019, 5:49 pm Reply

Great video! I look forward to more content. Just subscribed!

Kamil Patel

May 5, 2019, 9:38 pm Reply

LOL if they ask about the rearview mirror you got proof. Great video guys. I'm from Houston. Feel free to contact me if you need any Houstonians to guide you.

Origin Investments

Jun 6, 2019, 6:32 pm Reply

For more tours with Dave and Matt, join the newsletter here: http://bit.ly/2GlDg8T

dood poop

Jul 7, 2019, 9:25 am Reply

I got an offer for a promotion, but have to move out of DFW to Houston for it; The housing value projections seem to be better in DFW. Was getting my buying shoes on, but looks like i'd have to wait prices back down if I'm planting myself in Houston.

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