Another Local Developer Bets on Vertical Luxury in Houston

Another Houston builder is wading deeper into the luxury condo game.

Houston-based Black Stone Builders is planning a midrise condominium in Montrose, aiming to tap into growing buyer demand for high-end condos in the city’s most walkable neighborhood, the Houston Business Journal reported.

The seven-story project at 1401 Waugh Drive will feature five full-floor units each spanning 2,800 square feet with prices starting at $1.5 million, Black Stone president Shahem Barazi told the outlet. A sixth floor will serve as a shared amenity space, while one floor will house mechanical systems.

Barazi said he hopes to start construction within three months, depending on permitting, and he expects construction to take about nine months.

The building, tentatively named “The Alexander,” is being designed by Design Group USA, with Interfield Group overseeing engineering. Black Stone, which is unrelated to Blackstone Group, will serve as its own general contractor.

Each unit will include a primary suite, guest room and an office with en-suite bathrooms, open-concept living spaces and a private balcony with a gas grill. Barazi said the $500 to $600 per square foot price point is competitive with the $600 to $950 range seen at nearby condo high-rises.

Barazi has already fielded interest from investors, including international buyers, he said.

The project adds to a wave of high-end condo development in Houston, historically a tough sell in a city defined by sprawl and single-family homes. But that’s beginning to shift.

In River Oaks, nearly all 23 units at Randall Davis Company’s London House were pre-sold by March, with prices between $1.5 million and $3.8 million. The 12-story building is part of a broader uptick in high-end condo construction, including projects like The Chaucer in Rice Village and the forthcoming St. Regis Residences in Upper Kirby.

Black Stone, which has built homes in River Oaks, Memorial and Tanglewood, the Montrose move signals confidence that Houston’s condo market is maturing. The project joins a trend of developers hoping to bank on vertical luxury.

— Judah Duke