Are GROCER-ANCHORED DEVELOPMENTS The ULTIMATE MULTIFAMILY AMENITY?

ZIEGLER COOPER

Essay 20.2

ARE GROCER-ANCHORED DEVELOPMENTS THE ULTIMATE MULTIFAMILY AMENITY? Buffalo Heights – A Midway Development

Client – BKF Memorial

Is H-E-B helping this development during this economic downturn?

The St. Andrie is the multifamily component of ZCA’s mixed-use design for the first phase of BKR Memorial’s Buffalo Heights, developed by Midway Companies. The St. Andrie opened in November, 2019 along with the H-E-B grocery, and One Buffalo Heights creative office space. Grocery-anchored mixed-use development is the lifestyle that renters are looking for.

Between March 11, 2020 and April 9, 2020 – the first full month of stay-athome from the COVID-19 pandemic – the 4 and 5 Star apartments located in the Houston Heights submarket showed a -3.73% negative effective rent growth, according to an article published by CoStar on April 13, 2020.

However, during the same period, the St. Andrie enjoyed a positive 2.2% rent growth in effective rent.

Houston Multifamily Rent Change

We theorize that there are

(March 11- April 9)

-5% -4% -3% -2% -1%

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1%

2%

Buffalo Heights Phase 1, Ho Developed by Midway Compan

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St. Andrie Medical Center / West University Baytown Brookhollow / Inwood Galleria / Uptown Southeast Montgomery County Pearland Outlying Montgomery County

1. Location – The St. Andrie is situated in a prime location at the corner of Washington and Waugh in Houston’s highly desirable Heights district.

South Galveston County Spring Branch Southwest Houston Downtown Houston Heights North Galveston County East End Houston -5% -4% -3% -2% -1%

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Source: CoStar as of April 13, 2020 2

2.

Th mi ZC pu thi co dy de co

ouston, Texas nies

re three factors contributing to these striking rent data for the St. Andrie

. Mixed-use Rent Premium – he benefit gained from walkable, ixed-use design, as described in earlier CA publications, and as studied and ublished by The Brookings Institution. In is case, ZCA skillfully wove together three omplimentary uses into a beautiful and ynamic grocery-anchored mixed-use evelopment to answer the desire for a onvenient urban lifestyle.

H-E-B Interior Design by Selser Schaefer Architects

3. Grocery-Store Effect – The St. Andrie apartments sit atop a 96,000-square-foot grocery store – the first of its kind for Texas’ most popular and successful grocer, H-E-B. In May 2019 NKF published “The Grocery Store Effect,” as part of their Knowledge Leadership Series. The piece studied a phenomenon whereby new grocery stores impact multifamily rents in the Washington Metro Area. Groceryanchored apartments gained as much as a 23% effective rent premium.

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ABOUT THE AUTHOR: Scott Ziegler, AIA

“This is the lifestyle trend that renters are looking for to become less auto centric.”

Axel Weisheit, AIA Buffalo Heights – Senior Project Designer Associate Principal | Urban Residential Studio

As Founding Principal of the firm and leader of the Urban Architecture Studio, Scott’s design experience reflects his belief that inspirational architecture enriches people’s lives, uplifts the human spirit, and provides a constant vision of excellence.

As Residential Practice Area Leader, Scott plays an active role in shaping the urban landscape through his published writings in professional journals on the subjects of sustainable urban growth strategies and highdensity mixed-use developments.

Ziegler Cooper Architects 700 Louisiana, Ste 350 Houston, TX 77002 t: 713.374.0000 www.zieglercooper.com

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H-E-B Interior Design by Selser Schaefer Architects