Core, LEED Silver, Luxury Apartment Community for Sale in Houston

Monday, August 22, 2016

Update:  This property is no longer on the market. To view HFF's current real estate investment sales listings, please click here.

HFF, on behalf of the owner, is marketing for sale WaterWall Place, a flagship, LEED Silver, luxury multi-housing community recently developed by Hines, one of the world’s leading real estate organizations. This core, generational trophy asset is located at 2801 WaterWall Drive on one of the best urban spaces in Houston, an incomparable location with undeniable permanency.

No other multi-housing community in Houston offers more than 2.6 million square feet of Class A office space and 2.4 million square feet of retail amenities mere footsteps from the front door. Residents have an urban gem of a greenspace; the eponymously-named Gerald D. Hines Waterwall Park; the iconic Williams Tower, home of the Hines world headquarters; and The Galleria, an international shopping destination and the fourth largest shopping center in the nation, as their neighbors. WaterWall Place is unlike any other multi-housing asset in Houston; the apartment property for sale has a dynamic, 24/7 live-work-play location that cannot be duplicated. It is meticulously designed to capture and retain an affluent, renter-by-choice tenancy, deliver above market returns and sustained, long-term value appreciation.

Beyond its standing as one of the most walkable urban apartment communities in Houston, WaterWall Place further reflects the Hines commitment to quality  and attention-to-detail, which is evident in both its structure and finishes. It’s seven-level, load bearing metal stud structure ensures enhanced sustainability, durability and structural performance. The steel and concrete construction, a rarity in Houston, also provides a sound barrier between city noises and residences. Thoughtful design elements abound throughout WaterWall Place including a façade clad in cast stone and rose-colored brick to complement the color palette of the adjacent Waterwall and a curved wall in the main lobby to mimic it on an intimate scale, as the tiles give a visual effect of water flow. Residents enjoy luxury at every turn, from complimentary car service and service runners to the opulent Sky Lounge, postcard views of the Houston skyline and the Gerald D. Hines Waterwall Park.

“WaterWall Place is a very special project for us,” said Gerald D. Hines, founder and chairman of Hines. “It was the anchor project for our new multifamily platform; so we worked hard to make it timeless and appealing to discerning renters. Its privileged location overlooking a city park and in proximity to the Galleria sets it apart as a singular investment in our hometown of Houston.”

WaterWall Place Investment Highlights

  • Houston’s Most Walkable Urban Community:  WaterWall Place has a Walk Score® of 87, one of Houston’s highest in the multi-housing sector. It is higher than the submarket Walk Score of 63 and substantially higher than the citywide score of 44. More than the official “Very Walkable” definition bestowed by Walk Score, WaterWall Place’s location is a walker’s paradise and has a unique sense of place incomparable to any location or community in Houston. WaterWall Place has the exclusive distinction of being able to call Houston’s most recognizable landmarks, Gerald D. Hines Waterwall Park, its front garden and the Galleria, Houston’s iconic luxury retail complex, its backyard. Residents are only a few steps away from the more than 2.4 million square feet of high-end shopping, exquisite dining and a variety of entertainment options offered by the Galleria, as well as 2.6 million square feet in iconic Houston office developments, including Williams Tower and Lakes on Post Oak.
  • Houston’s Most Successful Live-Work-Play Environment:  The Galleria/Uptown district is Houston’s premier area of urban sophistication, international style and cosmopolitan energy. It is an unrivaled mixed-use destination with 500 densely-populated acres of prime real estate in central Houston. Galleria/Uptown is the city’s preeminent, upscale shopping district, its biggest hotel district, one of the largest business districts in the nation and a world-renowned tourist destination. The business district is ranked 15th in the U.S. in terms of office space, comparable in size to the downtowns of Pittsburgh and Denver. More than 200,000 international business professionals, fashionistas, city dwellers and tourists from around the globe converge in the area daily, and more than 30 million visitors come to the area annually.
  • One of the Wealthiest Zip Codes in America:  As one of Houston’s most coveted addresses and in one of the nation’s wealthiest zip codes (77056), the Galleria/Uptown district is a top-performing housing submarket in continual demand with limited sites for new development and above market fundamentals. Single-family housing in the Galleria/Uptown district is unattainable for most renters. Nearby residential neighborhoods, amongst Houston’s most affluent, have average home values above $1 million. Luxury condominiums, the most expensive in the city, sell out quickly, with sales prices beginning around $540 per square foot, or $600,000 per unit.
  • Best-in-Class Performance and Recognition:  A testament to its incomparable location, quality and amenities, WaterWall Place attracts and retains key, premium renter-by-choice demographics with ease. Its online reputation is sterling and unprecedented, ranking above 4.5 (out of 5 stars) on all the popular sites for renters today. Its initial lease-up yielded an above market rate of 82 pieces of traffic and 28 gross leases per month (23 net). There were 44 leases signed before the first unit was even delivered. Since its stabilization last year, WaterWall Place has averaged 93.5 percent occupancy. More impressively, the community has a 71 percent renewal rate this year.

“Our office is thrilled at the opportunity to work on such a special project and for a client like Hines,” said HFF Senior Managing Director Todd Marix. “The marketplace has not been offered an opportunity to acquire a property of the caliber of WaterWall Place in some time. We expect to see some strong interest from institutional capital that has been waiting for just the right opportunity. WaterWall Place meets or exceeds all the criteria for a true core, generational asset in quality and location.”

WaterWall Place is a core, luxury apartment community for sale in Houston’s affluent Galleria/Uptown district that benefits from its walkable, 24/7 live-work-play location. For more information on this commercial property for sale or other Houston-area properties, please contact Todd Marix, Matt Kafka or Chris Curry in HFF’s Houston office.

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