Major multifamily developer under contract to buy land in the Galleria area

Nov 30, 2015, 8:38am CST

Hanover Post Oak, located at 1750 Sky Lark Lane in the Galleria area, is Hanover’s newest luxury apartment tower.

Paul Takahashi Reporter- Houston Business Journal

The Hanover Co. is under contract to buy land in the Galleria area, possibly for a new luxury apartment project.

The Houston-based multifamily developer plans to purchase a parcel of land just south of its Hanover Post Oak luxury apartment tower off South Post Oak Lane. The deal is expected to close by mid-January.

Hanover declined to comment about its plans for the land at this time. However, Ed Wulfe — the developer of the nearby BLVD Place luxury retail center — told the Houston Business Journal that “there will probably be another high-rise apartment built on the land next to the Hanover tower.” Wulfe plans to kick off the third phase of BLVD Place’s development next year.

Hanover, which has a track record for developing high-end apartment projects, seems poised to return to Houston’s multifamily market despite the oil slump.

In January, Hanover began pulling back from developing new projects in Houston. At the time, the national developer had plans to purchase land in Upper Kirby to build a 30-story, 300-unit luxury apartment tower. However, amid the downturn in Houston’s energy sector, Hanover’s capital partners pulled their support, leaving the company scrambling to find new investors. The drop in oil prices has claimed dozens of proposed apartment projects in Houston