The B/S/H/ Experience & Design Center was the hottest ticket in Texas last Thursday. Real estate industry VIPs from across The Lone Star State gathered to hear a sizzling standing room only fireside chat between hospitality magnate and Rockets owner Tilman Fertitta and TRD Founder & Publisher Amir Korangy. Then, TRD Texas Bureau Chief Jess Hardin hosted a wide-ranging panel discussion covering the ins and outs of Houston’s triumphant luxury development sector.
Fertitta talked about his recent acquisition of Keens Steakhouse, how the country’s diversity of local labor markets affects his business strategy, and why real estate fundamentals continue to drive his decision-making to this day.
“You’re always very location driven,” said Fertitta when asked how he chooses where to lease space for his restaurants. “Don’t go to the street behind because the rent is 50% less.”
The Texan billionaire became “The World’s Richest Restauranteur” by treating the hospitality game as an extension of the real estate business.
“I did not overpay for Keens because I bought the real estate,” he told Korangy of his recent $30 million purchase of the historic Manhattan steakhouse. “The one thing that you know is the price of real estate can always go up. The restaurant might not, but the real estate will.”
Of course, it’s not all gravy for the Landry’s owner. When Korangy pointed out that Fertitta is the largest buyer of prime beef in the country, the restauranteur bemoaned that the marbled meat is “the most expensive, inflated item out there right now.”
“It was a very down to earth talk,” said attendee Marcello A. Lucchetta, VP of Sales in the Americas for Luxury Living Group. “He’s a successful guy, it was inspiring to hear from him.”
Next up, a panel of local real estate pros talked about the industry’s response to Houstonian’s insatiable demand for luxury resi.
“Developers have to adapt to what Texans are interested in,” said Catherine Lee, President of New Development in Texas for Douglas Elliman. “Houstonians love outdoor space, right? We love our animals. We love our dogs. So condominium design has really evolved over time.”
One guiding factor for Houston luxury resi is the wide open spaces available to builders, giving designers a lot of freedom when drawing up plans. “You can design different rooms for whatever your needs are, because you have so much land, ”said Nina Magon, Founder & Principal at Nina Magon Studio.
On the development side, Texas presents some unique hurdles compared with other hot luxury markets. “It’s always been a challenge to develop condominiums here,” explained Roberto Contreras IV, Co-President of DC Partners, who noted that state law prevents developers from using pre-sale deposits to finance construction. “It’s a higher risk profile.”
The talks were followed by lively discussions and networking fueled by canapés and cocktails amid the vignette displays showing off the latest cutting-edge offerings from Bosch, Thermador, and Gaggenau. Ari Rastegar, CEO of Rastegar Property Company, was among the notable attendees seen mingling by the mezcal bar.
If you missed this event, don’t worry! B/S/H/ and The Real Deal will host another captivating event in Beverly Hills on February 4th. Find more B/S/H/ coverage here.