HOUSTON – (By Ralph Bivins, Realty News Report) – What was once an ambitious vision now lies idle. The parcel of prairie will soon be offered for sale.
The plan belonged to retired Admiral William T. McRaven, the celebrated war hero who served as chancellor of the University of Texas System.
McRaven envisioned converting roughly 300 acres about a mile south of Loop 610 into a data science institute that would harness the expertise of the nearby Texas Medical Center, local universities and Houston’s corporate sector.
He committed fully to the idea. Around two years ago, the University of Texas paid $215 million for the land near Buffalo Speedway and West Bellfort, close to Willowbend Boulevard.
However, the proposal met strong resistance. Opposition from the University of Houston and from legislators in Austin challenged McRaven’s ambitious plan. Ultimately, he was unable to overcome the political and institutional pushback.
McRaven, 62, recently announced he will step down as chancellor at the end of the spring semester.
Under the direction of UT regent Jeff Hildebrand, founder of Houston-based Hilcorp Energy, the university will soon market the property. Requests for proposals are being prepared for prospective buyers.
Although the site sits barely three miles from Rice University and the Texas Medical Center, many view the tract as industrial. Some real estate professionals predict the eventual sale price could be less than half of the $215 million the university paid.
If the acreage is divided into smaller lots, top parcels might command up to about $20 per square foot — possibly. Other portions could trade for under $10 per square foot.
Still, the location offers appeal.
“What makes it attractive is that it’s a large assemblage of land near the Inner Loop. That makes it a rarity,” says land broker Reed Vestal of Lee & Associates.
The property’s value was publicly diminished by one of the project’s opponents, State Sen. John Whitmire. When UT announced a year ago that it was abandoning the plan, Whitmire told the Houston Chronicle: “Next time, don’t waste $200 million on a dump.”
Remarks like that have tangible consequences for the perceived value of state-owned land.
The envisioned University of Texas project, which could have reached as much as 1 million square feet, had the potential to be a major economic driver for Houston. It might have revitalized large tracts just south of Loop 610 that have been overlooked for years. The site sits due south of West University Place, one of Houston’s wealthiest neighborhoods. A UT data institute could have produced thousands of jobs and significant advances in data science.
Leaders at the University of Houston, feeling threatened by the plan, organized opposition and prevailed. That outcome is a setback for the city’s broader development interests.
What might have become a transformative project for Houston is now off the table.
Its failure can be traced to competing institutional interests.
March 5, 2018 Realty News Report Copyright 2018
Commentary by Ralph Bivins, editor of Texas-based Realty News Report.