A Houston developer is planning a nearly 500-unit district in downtown Houston offering housing priced for low- and moderate-income residents — a unique offering for an area with some of highest rents in the region.

 

Urban Genesis plans to open three midrise apartment complexes this year in a project dubbed the Warehouse District, set to rise on former warehouse sites north of Buffalo Bayou, just south of Interstate 10, on McKee and Nance streets.

 

A wave of new apartments boosted downtown’s residential population to 11,000 in recent years, according to the economic development group Downtown Houston, though most of the new housing caters to affluent renters.

 

“With 25% of our employment base working in the service industry and similar jobs, providing housing for them is an essential ingredient of a healthy downtown economy,” said Kris Larson, CEO of Downtown Houston.

 

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Within Warehouse District, about half of the units will be reserved for people making $33,570 to $59,680 annually, with rents restricted to $1,119 to $1,492 monthly, according to Urban Genesis.

 

The other half of the units will not be rent-restricted, but Urban Genesis said it was attempting to keep rents reasonably affordable for essential workers.

 

Rents for market-rate units in Warehouse District range from $1,400 for a 613-square-foot unit to $2,000 for an 868-square-foot unit, before leasing specials and discounts. The average asking rent for a new Class A apartment downtown is $2,178 monthly, making downtown the most expensive apartment submarket in the metro, according to MRI Software.