HOUSTON – (By Cynthia Lescalleet) – A thriving urban core requires development that respects and complements the traditional, diverse neighborhoods that surround it, said Mark Falcone, founder and CEO of Continuum Partners, based in Denver.
As the keynote speaker at the Urban Land Institute’s Urban Marketplace 2017, held April 13 at the Marriott Marquis Houston, Falcone addressed the dynamics and challenges that cities face as new development pipelines help revive them — and bring new problems in their wake.
Falcone, a fourth-generation developer, describes his projects as “human habitats” as well as solid business ventures. Over two decades, Continuum Partners has earned industry recognition for a string of successful developments, most notably the nationally acclaimed Denver Union Station Transportation Center. The renovated historic Union Station now serves as the nexus for commuter rail lines and is surrounded by significant mixed-use development led by Falcone’s firm and its partners.
According to Falcone, demographic shifts are a key force shaping urban change, and it’s not only millennials driving transformation. Many families with young children—whose activities require convenient access to schools, practices and entertainment—are redefining how they use urban space. Their parents, often eager to stay nearby, are returning to or discovering downtown living and amenities as well.
“We’re beginning to see signs of a new group of stresses,” Falcone told the ULI audience.
He identified geographic displacement as a major and accelerating concern. Neighborhoods that once attracted artists and other creatives—whom Falcone likened to canaries in a coal mine—often become desirable, raise local property values, and then change character. Those early contributors to a neighborhood’s vitality can be pushed out as investment and development follow.
“As our cities change, adapt and evolve, we have to become better at human ecology,” Falcone said. City builders and developers need to anticipate displacement and act to ensure urban centers remain places of opportunity for all residents.
Falcone emphasized his commitment to sustainable development patterns, while also identifying himself as a capitalist who sees affordable housing as essential to a healthy, resilient city.
Another challenge he outlined is the shrinking supply of easily developable sites in urban areas. Concurrently, many new projects target a narrow, high-income demographic — the most highly paid and productive segments of the population — which can reinforce inequities and limit a neighborhood’s social mix.
Falcone urged that projects be evaluated not only on financial returns, but also on the value they add to the existing urban fabric — how they enhance community, diversity, and long-term sustainability — rather than simply maximizing unit counts or square footage.
With capital shaping these development patterns, Falcone argued the industry must find ways to balance social impact with economic return. That may require innovative financing approaches and broader access to investors, rather than relying solely on large institutional capital sources he called “capital traffickers.”
Ultimately, he said, development should aim to create a healthy, dynamic urban environment that supports a diverse population and a range of activities across time.
After studying the Houston market, Falcone praised the city’s substantial investment in infrastructure and architecture. He expects technology to further strengthen connections between Houston’s major centers — downtown, the Texas Medical Center, Greenway Plaza and Uptown — enhancing mobility and integration over time.
Another highlight of the ULI event was a panel discussion entitled: “The 24-Hour Downtown: When Do We Get There?”
Panel moderator Minnette Boesel, owner of Minnette Boesel Properties, noted that downtown Houston has come a long way from the days when the city center shut down at 6:00 pm. Thousands of new residential units have been added, creating more continuous activity.
Peter McStravick, chief development officer at Houston First, highlighted the eastern edge of downtown as a dramatic example of transformation. “The east side of downtown was dead,” he said, referring to the period when the George R. Brown Convention Center initially stood in isolation. Over time, the addition of anchors such as Minute Maid Park, the Hilton Americas and Discovery Green activated the area and increased density.
Thousands of residential units have been completed in downtown Houston in recent years, and several thousand more are currently under construction, contributing to a more lively, round-the-clock urban core.
Mark Cover, CEO of the Southwest Region for Hines, said housing is central to creating a 24-hour downtown and a complete urban community. Hines is nearing completion of the 32-story Aris on Market Square, a 278-unit rental building located on a block bounded by Prairie, Preston, Main and Travis streets.
Michael Smith, president of Charlotte Center City Partners in North Carolina, described a similar surge in downtown Charlotte, where some 4,000 apartment units are under construction and another 5,000 are planned. Smith cautioned that an overreliance on multifamily development could lead to an imbalance, and downtowns may need a broader mix of uses to remain vibrant.
April 13, 2017 Realty News Report Copyright 2017