Item 2. Properties
Item 2. Properties
Our corporate headquarters are located in The Woodlands, Texas. We also maintain offices at certain of our properties nationwide, including Honolulu, Hawai‘i; New York, New York; Columbia, Maryland; Las Vegas, Nevada; and Scottsdale, Arizona. We believe our present facilities are sufficient to support our operations.
OPERATING ASSETS
In our Operating Assets segment, we own a variety of asset types including approximately 8.8 million square feet of retail and office properties, 5,587 wholly and partially owned multi-family units, and wholly and partially owned other properties and investments. Our assets in this segment are primarily located in and around Houston, Texas (The Woodlands and Bridgeland); Columbia, Maryland (Columbia); Las Vegas, Nevada (Summerlin); and Honolulu, Hawai‘i (Ward Village).
The following table summarizes certain metrics of our office assets within our Operating Assets segment as of December 31, 2023:
Office Assets Rentable Square Feet % Leased Annualized
Base Rent
(thousands)
(a) Annualized
Base Rent Per
Square Foot
(a) Effective
Annual Rent
(thousands)
(b) Effective
Annual Rent per
Square Foot
(b) Year Built /
Acquired / Redeveloped
The Woodlands
Creekside Park Medical Plaza (c) 32,689 —% $— $— $— $— 2022
One Hughes Landing 200,639 65% 3,436 27.03 5,165 40.63 2013
Two Hughes Landing 197,950 87% 4,353 25.15 6,714 38.80 2014
Three Hughes Landing 321,649 96% 7,702 28.43 11,670 43.08 2016
1725 Hughes Landing Boulevard 339,608 58% 4,815 24.55 7,051 35.95 2015
1735 Hughes Landing Boulevard 318,237 100% 8,202 25.77 12,607 39.62 2015
2201 Lake Woodlands Drive 22,259 100% 470 21.13 878 39.45 2011
Lakefront North 258,058 98% 7,069 28.00 11,356 44.97 2018
8770 New Trails (d) 180,000 100% — — — — 2020
9303 New Trails 98,283 42% 874 21.20 1,454 35.27 2011
3831 Technology Forest Drive 97,360 100% 2,444 25.10 3,710 38.10 2014
3 Waterway Square 227,617 91% 5,085 27.47 7,833 42.32 2013
4 Waterway Square 217,952 90% 4,867 26.93 7,524 41.64 2011
The Woodlands Towers at The Waterway (e) 1,395,599 96% 37,388 30.47 56,297 45.88 2019
1400 Woodloch Forest 94,276 84% 2,493 31.98 2,691 34.51 2011
4,002,176
Columbia
Merriweather Row (f) 925,584 79% 18,336 26.37 18,893 27.17 2012 / 2014
Columbia Office Properties 67,066 83% 1,319 23.77 1,602 28.85 2004 / 2007
One Mall North 99,806 49% 1,444 29.49 1,594 32.56 2016
One Merriweather 209,959 100% 8,222 39.16 8,583 40.88 2017
Two Merriweather 124,639 94% 4,000 36.88 4,168 38.43 2017
6100 Merriweather 326,237 98% 8,182 36.19 8,432 37.30 2019
1,753,291
Summerlin
Aristocrat (d) 181,534 100% — — — — 2018
1700 Pavilion 265,898 90% 4,648 35.46 4,648 35.46 2022
One Summerlin 207,292 87% 7,694 43.24 7,953 44.70 2015
Two Summerlin 147,139 100% 5,542 37.67 5,940 40.37 2018
801,863
Total 6,557,330
(a) Annualized Base Rent is calculated as the monthly Base Minimum Rent for the property for December 31, 2023, multiplied by 12. Annualized Base Rent Per Square Foot is the Annualized Base Rent for the property at December 31, 2023, divided by the average occupied square feet.
(b) Effective Annual Rent includes base minimum rent and common area maintenance recovery revenue. Effective Annual Rent Per Square Foot is the Effective Annual Rent divided by the average occupied square feet.
(c) Creekside Park Medical Plaza was placed in service during the fourth quarter of 2022 and had no executed leases. Subsequent to year end, the Company completed the sale of this property for $14.0 million. As such, Annualized Base Rent and Effective Annual Rent are not applicable.
(d) These properties are build-to-suit projects entirely leased by a single tenant. Therefore, the Annualized Base Rent and Effective Annual Rent details have been excluded for competitive reasons.
(e) The Woodlands Towers at the Waterway includes 1201 Lake Robbins and 9950 Woodloch Forest.
(f) In 2023, the Company rebranded Merriweather Row (formerly 10 - 70 Columbia Corporate Center).
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The following table summarizes certain metrics of our retail properties within the Operating Assets segment as of December 31, 2023, and does not include any retail square footage in our multi-family assets:
Retail Properties Rentable Square Feet % Leased Annualized
Base Rent
(thousands)
(a) Annualized
Base Rent Per
Square Foot
(a) Year Built / Acquired / Redeveloped
The Woodlands
Creekside Park West 72,976 97% $1,954 $29.70 2019
Hughes Landing Retail 125,709 100% 4,035 36.23 2015
1701 Lake Robbins 12,376 100% 533 43.05 2014
20/25 Waterway Avenue 51,543 100% 1,544 38.41 2011
Waterway Square Retail 21,513 100% 849 39.55 2011
284,117
Bridgeland
Lakeland Village Center at Bridgeland 67,947 92% 1,845 33.01 2016
Columbia
Color Burst Park Retail (b)(c) 12,410 100% — — 2020
Rouse Building (b) 89,199 100% 2,778 31.15 2014
101,609
Summerlin
Downtown Summerlin (d) 803,145 96% 24,329 31.85 2014 / 2015
Ward Village
Ward Village Retail - Pending Redevelopment 356,724 91% 7,848 24.06 2002
Ward Village Retail - New or Renovated 500,015 94% 21,310 45.25 2012 - 2023
856,739
Total 2,113,557
(a) Annualized Base Rent is calculated as the monthly Base Minimum Rent for the property for December 31, 2023, multiplied by 12. Annualized Base Rent Per Square Foot is the Annualized Base Rent for the property at December 31, 2023, divided by the average occupied square feet.
(b) In 2023, the Company rebranded Color Burst Park Retail (formerly Merriweather District Area 3 Retail) and Rouse Building (formerly Columbia Regional Building).
(c) Color Burst Park Retail is comprised of two buildings and each is entirely leased by a single tenant. Therefore, the Annualized Base Rent and Effective Annual Rent details have been excluded for competitive reasons.
(d) Excludes 381,767 square feet of anchors and 39,700 square feet of additional office space above our retail space.
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The following tables summarize certain metrics of our multi-family Operating Assets as of December 31, 2023:
Multi-family Assets
Ownership % Units Retail Square Feet % Units Leased Average Monthly Rate Average Monthly Rate Per Square Foot Year Built / Acquired / Redeveloped
The Woodlands
Creekside Park 100% 292 — 95% $1,806 $1.84 2018
Creekside Park The Grove 100% 360 — 95% 1,806 1.84 2021
Millennium Six Pines 100% 314 — 93% 2,030 2.11 2016
Millennium Waterway 100% 393 — 97% 1,767 1.96 2012
One Lakes Edge 100% 390 22,971 95% 2,267 2.29 2015
Two Lakes Edge 100% 386 11,415 94% 2,861 2.87 2020
The Lane at Waterway 100% 163 — 94% 2,597 2.36 2020
Bridgeland
Lakeside Row 100% 312 — 96% 1,869 1.90 2019
Starling at Bridgeland 100% 358 — 94% 2,001 2.05 2022
Wingspan (a) 100% 263 — 15% 2,511 2.01 2023
Columbia
Juniper 100% 382 55,677 96% 2,206 2.47 2020
Marlow 100% 472 32,607 57% 2,078 2.66 2022
The Metropolitan 50% 380 13,591 95% 2,319 2.45 2015
TEN.m.flats 50% 437 28,026 97% 2,232 2.51 2018
Summerlin
Constellation 100% 124 — 87% 2,564 2.29 2017
Tanager 100% 267 — 96% 2,474 2.54 2019
Tanager Echo 100% 294 — 21% 2,652 3.03 2023
Total 5,587 164,287
(a) Wingspan, our first single-family rental community in Bridgeland, welcomed its first residents in October 2023. As of December 31, 2023, 28% of the property has been placed in service, with an additional 35% being placed in service in January 2024. The remaining 37% is expected to be placed in service in the second quarter of 2024.
The following tables summarize certain metrics of our other Operating Assets as of December 31, 2023:
Other Assets
Ownership % Asset Type Size % Leased Year Built / Acquired / Redeveloped
The Woodlands
Hughes Landing Daycare 100% Daycare 10,000 sq ft 100% 2019
Houston Ground Leases 100% Ground lease N/A N/A Various
Stewart Title of Montgomery County, TX 50% Title Company N/A N/A —
Woodlands Sarofim 20% Industrial 129,790 sq ft 84% late 1980's
The Woodlands Warehouse 100% Warehouse 125,801 sq ft 100% 2019
Summerlin
Hockey Ground Lease 100% Ground lease N/A N/A 2017
Las Vegas Aviators 100% Minor League Baseball Team N/A N/A 2017
Las Vegas Ballpark 100% Ballpark N/A N/A 2019
Summerlin Hospital Medical Center 5% Hospital N/A N/A 1997
Ward Village
Kewalo Basin Harbor 100% Marina 55 acres N/A 2019
Other
Parking Garages (a) 100% Garage 9,184 spaces N/A Various
(a) Includes parking garages in The Woodlands, Columbia, and Ward Village.
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The following table summarizes our Operating Assets segment lease expirations:
$ in thousands
Year Number of Expiring Leases (a) Total Square Feet Expiring Total Annualized Base Rent Expiring % of Total Annual Gross Rent Expiring
2024 96 519,920 $ 20,616 5.3 %
2025 161 928,431 43,664 11.3 %
2026 109 553,655 23,463 6.1 %
2027 77 902,884 38,148 9.9 %
2028 71 583,446 28,340 7.3 %
2029 76 599,875 29,196 7.6 %
2030 37 613,838 31,556 8.2 %
2031 37 381,187 20,275 5.3 %
2032 30 1,143,715 61,314 15.9 %
2033 37 595,768 31,770 8.2 %
2034+ 86 1,228,659 57,272 14.9 %
Total 817 8,051,378 $ 385,614 100.0 %
(a) Excludes leases with an initial term of 12 months or less.
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MASTER PLANNED COMMUNITIES
Our MPCs are located in and around Houston, Texas; Las Vegas, Nevada; and Phoenix, Arizona and are summarized in the following table as of December 31, 2023:
Total Gross Approx. No. Remaining Saleable Acres Average Price Per Acre (thousands) (b) Projected Community Sell-Out Date Projected Cash Margin (c)
Community Location Acres (a) Residents Residential Commercial Residential Commercial Residential Commercial Residential
Bridgeland Cypress, TX 11,506 23,000 1,671 1,055 $501 $752 2035 2046 78%
Summerlin Las Vegas, NV 22,500 127,000 2,462 551 1,309 1,176 2043 2039 80%
Teravalis Phoenix, AZ 33,810 — 15,804 10,531 751 206 2086 2086 39%
The Woodlands (d) The Woodlands, TX 28,545 123,000 35 725 1,923 950 2026 2034 97%
The Woodlands Hills Conroe, TX 2,055 2,700 691 167 346 532 2030 2033 89%
Total 98,416 275,700 20,663 13,029
Floreo (e) Phoenix, AZ 3,029 — 861 457 779 151 2032 2035 53%
(a) Encompasses all of the land located within the borders of the master planned community, including parcels already sold, saleable parcels, and non-saleable areas such as roads, parks and recreation areas, conservation areas, and parcels acquired during the year.
(b) Average Price Per Acre is the uninflated weighted-average land value per acre, which reflects current market values being attained by the Company on current projects or at new projects based on third-party market data.
(c) Projected cash gross margin represents the net cash margin expected to be received in the future and includes all future projected revenues less all remaining future projected cash development costs. The projected cash gross margin does not include remaining historical development costs incurred to date. Gross margin for each MPC may vary from period to period based on the locations of the land sold and the related costs associated with developing the land sold.
(d) The Woodlands residential land development is nearing completion.
(e) The Company owns a 50% interest in this unconsolidated venture, however the data above is presented at 100%. See below for additional detail.
The Summit
Within our Summerlin MPC, an exclusive luxury community named The Summit is being developed and managed through a joint venture with Discovery Land Company (Discovery), a leading developer of luxury communities and private clubs. The original 555-acre community is nearing completion and consists of approximately 270 homes including 32 condominiums. In 2022, the Company contributed an additional 54 acres to The Summit adjacent to the existing Summit community to develop approximately 28 custom home sites. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2 - Investments in Unconsolidated Ventures in the Notes to Consolidated Financial Statements under Item 8 of this Form 10-K for further details.
Floreo
Floreo, the first village to be developed in our Teravalis MPC, will be developed and managed through a 50% joint venture. The 3,029-acre village is located in the greater Phoenix, Arizona area and is expected to consist of approximately 5,000 residential lots, commercial sites, as well as a planned business park. The first Floreo land sales were contracted as of December 31, 2023, and are expected to close in the first quarter of 2024. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2 - Investments in Unconsolidated Ventures in the Notes to Consolidated Financial Statements under Item 8 of this Form 10-K for further details .
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SEAPORT
The Seaport, located on the East River in Lower Manhattan, encompasses several city blocks (inclusive of Historic Area/Uplands, Pier 17, Tin Building, and the 250 Water Street development) and totals approximately 472,000 square feet of innovative culinary, entertainment, and cultural experiences.
The following table summarizes certain metrics of the Seaport as of December 31, 2023:
$ in thousands Landlord Operations (a) Landlord Operations - Multi-family (b) Managed Businesses (c) Tin Building (d) Events and Sponsorships (e) Total
Rentable Square Feet / Units
Total square feet / units 342,674 13,000 / 21 51,458 53,783 24,577
Leased square feet / units (f) 201,223 — / 21 45,846 53,783 24,577
% Leased (f) 59% —% / 100% 89% 100% 100%
Development
Development costs incurred (g) $ 567,414 $ — $ — $ 201,579 $ — $ 768,993
(a) Landlord Operations represents physical real estate in the Historic District and Pier 17 developed and owned by HHH and leased to third parties.
(b) Landlord Operations - Multi-family represents 85 South Street which includes base-level retail in addition to residential units.
(c) Managed Businesses represents retail and food and beverage businesses in the Historic District and Pier 17 that HHH owns, either wholly or through joint ventures, and operates, including through license and management agreements.
(d) The Company owns 100% of the Tin Building and leases 100% of the space to the Tin Building by Jean-Georges joint venture, in which the Company has an equity ownership interest.
(e) Events and Sponsorships includes private events, catering, sponsorships, concert series, and other rooftop activities.
(f) The square footage and percent leased for Landlord Operations includes agreements with terms of less than one year.
(g) Development costs incurred are shown net of insurance proceeds of approximately $64.7 million and excludes any impact related to the Seaport impairment recognized in 2023. Refer to Note 4 - Impairment in the Notes to Consolidated Financial Statements under Item 8 of this Form 10-K for additional detail.
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STRATEGIC DEVELOPMENTS
We continue to plan, develop, and hold or seek development rights for unique properties primarily in Ward Village, The Woodlands, Bridgeland, Summerlin, Columbia, and Teravalis. We continue to execute our strategic plans for developing several of these assets with construction either actively underway or pending. Strategic Developments are transferred into our Operating Assets segment when the asset is placed in service.
The following table summarizes our Strategic Developments projects under construction as of December 31, 2023:
$ in thousands Asset Type Location Size (a) Total Estimated Cost (b) Estimated Completion Estimated Stabilization Date
Strategic Developments Under Construction
Columbia
10285 Lakefront Medical Office (c) Office Columbia, MD 86,000 sq ft $49,930 Q2 2024 2027
Summerlin
Meridian (c) Office Las Vegas, NV 147,000 sq ft 55,459 Q1 2024 2027
Summerlin Grocery Anchored Center Retail Las Vegas, NV 67,000 sq ft 46,372 Q3 2024 2027
The Woodlands
1 Riva Row Multi-Family The Woodlands, TX 268 units 155,997 2025 2028
Ward Village
Under Construction
The Park Ward Village Condominium Honolulu, HI 545 units / 26,800 sq ft 605,150 2026 N/A
Ulana Ward Village Condominium Honolulu, HI 696 units / 32,100 sq ft 402,914 2025 N/A
Victoria Place Condominium Honolulu, HI 349 units 511,343 Q4 2024 N/A
Completed and Sold Out
‘A‘ali‘i Condominium Honolulu, HI 750 units / 11,175 sq ft 394,908 Completed N/A
Ae‘o Condominium Honolulu, HI 465 units / 70,800 sq ft 430,737 Completed N/A
Anaha Condominium Honolulu, HI 317 units / 16,048 sq ft 403,974 Completed N/A
Ke Kilohana Condominium Honolulu, HI 423 units / 28,386 sq ft 218,406 Completed N/A
Kō'ula Condominium Honolulu, HI 565 units / 36,995 sq ft 487,039 Completed N/A
Waiea Condominium Honolulu, HI 177 units / 7,716 sq ft 624,254 Completed N/A
(a) For condominium units and multi-family assets, square feet represents ground floor retail space whereas units represents residential units for sale or rent.
(b) As of December 31, 2023, total estimated cost remaining to be spent on these properties was $1.3 billion, of which $207.5 million is expected to be funded by HHH with the remaining cost to be funded with existing debt.
(c) In 2023, the Company rebranded 10285 Lakefront Medical Office (formerly South Lake Medical Office Building) and Meridian (formerly Summerlin South Office).
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The following table summarizes future Strategic Developments projects as of December 31, 2023:
$ in thousands Location Size
Future Strategic Developments Rights or Pending Construction
Columbia
Lakefront District (a) Columbia, MD 1,914,000 sq ft
Bridgeland
Village Green at Bridgeland Central (b) Houston, TX 28,000 sq ft
Summerlin
80% Interest in Fashion Show Air Rights Las Vegas, NV —
The Woodlands
Grogan's Mill Village Center (c) The Woodlands, TX 79,000 sq ft
2000 Woodlands Parkway (d) The Woodlands, TX 7,900 sq ft
Ward Village
Kalae Honolulu, HI 329 units / 2,000 sq ft
Other
West End Alexandria (e) Alexandria, VA 41 acres
Commercial Land
The Woodlands
The Woodlands Commercial Land (f) The Woodlands, TX 13 acres
Columbia
Columbia Commercial Land (f)(g) Columbia, MD 96 acres
Merriweather District (f) Columbia, MD 15 acres
Ward Village
Ward Commercial Land (f) Honolulu, HI 10 acres
(a) Represents remaining square footage approved for new mixed-use development in the Lakefront District which will include office, retail, and residential assets.
(b) This development will be anchored by 110,000 square feet of grocery space currently being constructed by H-E-B under a ground lease. The additional 28,000 square feet of retail space shown above will be constructed by HHH. The Company closed on the related construction loan in December 2023, and expects to begin construction in early 2024.
(c) Grogan’s Mill Village Center was acquired in 2023 and is being held in the Strategic Developments segment for planned redevelopment.
(d) 2000 Woodlands Parkway was transferred to Strategic Developments in the fourth quarter of 2023 and is currently pending redevelopment.
(e) Represents acreage owned through a joint venture.
(f) Represents land acquired or transferred to the Strategic Developments segment for future development, excluding acreage related to assets that are now in service in our Operating Assets segment or related to completed or under construction condominium towers.
(g) Columbia MPC land development is complete and the sale of remaining land or development of additional commercial assets will occur as the market dictates. As such, the remaining Columbia MPC land was transferred to the Strategic Developments segment in the first quarter of 2023.
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OTHER INFORMATION
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