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July 13, 2023

Ali Choudhri Wants To Reinvent His Houston Office Buildings. He Has To Hold Onto Them First

Just Announced: Montgomery County State Of The Market Sept. 21

Ali Choudhri doesn’t flinch as the man standing behind his desk chair jabs needles into his scalp, ears and neck. Doing acupuncture in his office at 2425 West Loop S. in Houston is a common practice for him.

Minutes before, Choudhri was moving swiftly through the 11 floors of the 283K SF building, visiting with tenants and describing what renowned architect I.M. Pei had in mind when he designed it in the early 1980s. Choudhri texted the acupuncturist to meet him on the way back up to his office; the practice opens the third eye, he says. 

While he confidently fields calls and explains his future plans for the building and what he’s done to transform it already, you wouldn’t know that days earlier, the LLC that owns 2425 filed for Chapter 11 bankruptcy. Or that the National Bank of Kuwait has filed notices twice this year to bring the building to a foreclosure auction.

Ali Choudhri Wants To Reinvent His Houston Office Buildings. He Has To Hold Onto Them First

But a foreclosure auction hasn’t happened, and Choudhri is focused on revitalizing the building, not losing it. Unlike owners of some other Houston office properties, Choudhri doesn’t plan to hand in the keys.“We’ve carried the building since Covid and have significantly leased up the building,” he told Bisnow in an interview…

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$465M Loan On Greenway Plaza Defaults, ‘Nowhere Close To Being Resolved’

The joint venture that owns Greenway Plaza, a 4.5M SF office complex in Houston, is no longer able to perform under the forbearance agreement it reached last year after its $465M loan reached maturity default, according to Trepp.

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Multifamily Rents Are Starting To Fall Across Texas

Apartment rents are expected to drop across Texas’ major metros through the balance of 2023 as the delivery of new units runs way ahead of demand.

Of the 113 major Texas submarkets analyzed by RealPage, 1 in 5 are experiencing rent cuts. With the exception of Austin, negative growth hasn't yet materialized at the metro level, but that will likely change as positive numbers seen in the first half of 2022 move outside of annualized calculations.

“About 80% of Texas submarkets are still experiencing positive year-over-year rent growth,” RealPage Senior Director and real estate economist Carl Whitaker said during a Tuesday webinar. “That may not be true by the time we get to September.”

Multifamily Rents Are Starting To Fall Across Texas

After a strong start to 2022, economic turmoil caused rents to come down about 10 basis points in the third and fourth quarters, which wasn’t a huge decline but was enough to kill momentum heading into 2023, RealPage Manager of Client Success and Market Analytics Dustin Weaver said.“You have a…

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More Multifamily Owners Are Discovering One Of The ‘Best-Kept Secrets’ Of U.S. Housing Policy

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Robin Valentine struggled financially for years as she lived in subsidized housing in Boston's Dorchester neighborhood with three children she raised on her own.

Despite having a stable job working for the University of Massachusetts Boston for nearly two decades, she found it hard to keep up with bills and debt payments. That all changed after she was introduced to a little-known federal program that would ultimately help her save tens of thousands of dollars and get out of subsidized housing.

“I didn’t want to be on Section 8 forever,” Valentine said. “It felt good to save money and have control.” In her first five-year period in the Family Self-Sufficiency program, she saved $11K that she used to pay off her student loan debt and other bills. She then re-enrolled and…

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