Swamplot Archives by Category: Commercial Real Estate

Friday, November 6, 2009

It Didn’t Take, This Broken Wing: What the Developer of Wilshire Village Had in Mind for Bellaire

Lauren Meyers, archivist of would-be Houston, digs up an earlier plan for a building at 4500 Bissonnet, on the corner of Mulberry St. in Bellaire. That’s the vacant property long in the possession of legendarily delinquent Wilshire Village landlord Jay H. Cohen, where Matt Dilick, the man who now apparently controls it, is planning to build a 2ish-story stucco mild-West meets retail-Tuscan strip center and sell off the rest of the land.

Back in 1946, Cohen’s father, who had developed the Wilshire Village Apartments on West Alabama and Dunlavy 6 years earlier, planned a 122-home subdivision on the 30-acre strip between Avenue A (now Newcastle St.) and Mulberry St. with a partner. And at the southern end of the property, facing Richmond Rd. (now Bissonnet St.), a sweeping, low-slung modern structure spanning Howard St.: the Mulberry Manor Community Center, designed by Houston architects Lloyd & Morgan.

Meyers quotes a Houston Chronicle report from September 1, 1946:

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Tuesday, November 3, 2009

On Bissonnet near Newcastle: More Pieces of the Wilshire Village Package

Let’s see . . . there was today’s planned foreclosure auction for Wilshire Village. What else does Matt Dilick of Commerce Equities have going on?

Swamplot’s neighborhood correspondent for Bellaire reports on Commerce Equities’ proposed development on one portion of a couple of long-vacant tracts at the northeast corner of Bissonnet and Newcastle:

The plots of land at 4400 and 4500 Bissonnet, between Newcastle and the Centerpoint service center, are being cut up and sold. . . .

Evidence of surveying and subdivision in recent weeks has recently given way to signboards indicating that the north third of the open land at 4500 Bissonnet will be cut up into six residential lots while the two-thirds fronting Bissonnet is reserved for commercial. The next block over, across Howard Street, commercial space is being developed to open before April of 2010. According to flyers on broker David Nettles’s website, approximately 62% of the 20,000-some-odd square feet of office space is still available.

But the two parcels — totaling almost 4 acres — have more of a connection to Wilshire Village than just the involvement of Dilick.

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Friday, September 18, 2009

All Those New Energy Corridor Office Buildings

   

“Among projects slated to begin construction soon are the 477,000-square-foot Energy Tower III from Mac Haik Realty Ltd. on the Katy Freeway, the 170,000-square-foot Enclave Corporate Center and the 230,000-square-foot Energy Crossing II, developed by Phoenix-based Opus West Corp. on the Katy Freeway. Currently, 13 new office buildings are being constructed in the Energy Corridor, according to the Energy Corridor Management District. Major developments coming online in the near future include the 300,000-square-foot Three Eldridge Place at 737 North Eldridge Parkway being developed by Dallas-based Behringer Harvard; the 447,000-square-foot Energy Tower II, which is expected to be completed this fall and will be occupied primarily by Technip; and Eldridge Oaks I, a 350,000-square-foot building at 1080 Eldridge Parkway being developed by Transwestern. In all, the market will gain an estimated 1.25 million square feet of new space, of which about 33 percent is pre-leased. Class A vacancy is expected to increase by about 50 percent this year, its highest rate in five years, according to market experts.” [Houston Business Journal]

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Wednesday, September 16, 2009

Comment of the Day: Wilshire Village Logic

   

“I am really amazed at this debate. The principle is very simple. The land is too valuable for the revenue generating capacity of existing structures. You can’t rent those spaces for enough money, no matter how you remodel. This is definately a high density project and could be high-rise site in a better market, where are you going to find north of 7 acres in an area like this? The Fiesta across the street is in the Cohen family, so that could be in play. The Cohen family is surrounded by real estate guys. The real shame here, is that you have complicated personalities that probably prevented any new construction during a time in which it would have been viable, so now they are trying to market a property in a climate that almost no one can get financing that would make a deal work. A new project would have provided comfortable living space in a convenient and desirable location, with maybe even a mixed use component. You tear down 40+ year old properties, that have a great deal of deferred maintanence, for marketing purposes, and now they can showcase those beautiful magnolia trees, which I hope they can preserve as many as possible, but it has to make economic sense. I am sure that if someone will make a fair market value offer, and they are a credible buyer, they would sell. Death to rumors. The dirt could be as much as $100 a foot, if you turned back the clock 2 years. It is special so may still demand it.” [Alexander, commenting on All Cleaned Up and Ready for Sale: What Can We Get for Wilshire Village?]

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Tuesday, September 15, 2009

In and Around the New North Montrose Whole Foods

A few details on that new Whole Foods Market planned for the corner of West Dallas and Waugh, just south of the now AIG-sign-free America Tower: Finger Companies, the owners of the land, says the new store will be 40,000 sq. ft. — slightly smaller than reported when the company first announced the project more than a year ago. Also: The store will have “a variety of eco-conscious elements and tons of inviting space for neighbors to congregate.”

The Finger Companies says the Whole Foods will be built “in conjunction with the developer’s proposed new luxury apartment project.” That project, also announced in the spring of 2008, was slated for the eastern portion of the site, closer to Montrose Blvd.

Image: The Finger Companies

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Monday, August 17, 2009

Out of the Lead but Into the Fire: Bruce Elementary School Burns

The old Bruce Elementary School on Bringhurst St. in the Fifth Ward — featured on Swamplot just last week and apparently just about ready to go up for sale — went up in flames last Friday night, reports our neighborhood correspondent. A story featured on Abc13 news says the building did suffer major damage from the flames, and makes it sound as if arson is suspected. Did any of the asbestos do its job?

Photo of former Bruce Elementary School, 713 Bringhurst St.: Vaughn Mueller

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Alabama Bookstop Theater: The Balcony Is Closed for This Performance

You were maybe planning to stop by the Bookstop in the old Alabama Theater on Shepherd for one last browse before the store closes on September 15th? Do a little clearance-sale shopping, grab a coffee up on the balcony and look out over that live-on-stage magazine stand?

It may be a little too late for that now. On the Houston Press Twitter feed this weekend, Katharine Shilcutt reported that the upper levels of the store are already cleared and closed . . . for good.

Photo: Houston Press

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Tuesday, August 11, 2009

Okun Gets 100 Years; How Many for the West Oaks Mall?

High-stakes real estate swindler Edward H. Okun was sentenced last week in a Virginia courtroom to 100 years in prison for absconding with about $126 million in funds entrusted to his qualified intermediary company by 1031 exchange investors. Meanwhile, back on the corner of Westheimer and Highway 6, one of his former properties went up for sale.

Okun’s Investment Properties of America bought the West Oaks Mall for $110 million in 2005. The sellers of the bankrupt property might expect to get $20 million for the million-sq.-ft. mall today, reports Globe St.’s Amy Wolff Sorter:

The mall’s anchors include Dillard’s and Macy’s, which own their own space, and Sears, which is on a lease. [Holliday Fenoglio Fowler's Robert] Williamson says the Sears lease is up in 2010, but negotiations are underway to keep the retailer in place.

When Okun bought the mall from Somera Capital and CoastWood Capital a little less than four years ago, the asset was 95% leased, and sported $10 million worth of exterior and interior improvements. IPA had even larger plans for even more renovations on the 33-acre site, Williamson says.

Less than a year later, the owner was able to secure $86 million of permanent financing for the mall. Yet by late 2007, IPA had filed for bankruptcy protection to stave off foreclosure. Okun’s troubles and a failing economy dropped the mall’s occupancy to a little less than 70%.

How’s the mall looking these days?

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Monday, August 10, 2009

The Fifth Ward’s Old Bruce Elementary School: Lead Scraped and Ready!

Swamplot’s new “Bottom” of the Fifth Ward correspondent Vaughn Mueller reports from the site of the old Bruce Elementary School, where a sign indicates the property is for sale. A source tells Swamplot that a few details need to be worked out before it’s “officially” on the market, but an HISD web page provides some information about the property.

The school, which was closed at the end of the spring 2007 semester, sits along Cage and Bringhurst on the I-10 feeder road, and comprises a little more than 2 blocks. Mueller reports that the new Bruce Elementary (built by a 2002 HISD bond) less than a mile away on Jensen opened its doors in the fall of 2007.

Why the move?

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Friday, August 7, 2009

Houston’s Commercial Foreclosure Boom

   

The far greater numbers of residential foreclosures — currently spiking now that moratoriums have been lifted — may be sucking up the attention. But there’s plenty of excitement in Houston commercial foreclosures too, the Foreclosure Information & Listing Service reports: “The number of commercial properties posted for foreclosure in Harris County in the past three months is up 84 percent over the same time last year. Records show 335 commercial properties were posted for foreclosure in Harris County in May, June and July compared to 182 during the same months in 2008. Just over 20 percent of the commercial properties posted for foreclosure from May through July 2009 actually passed through the foreclosure process by going back to the lender or getting purchased at public foreclosure auction by a third-party buyer. During the same time period last year, only 15 percent of the properties were foreclosed. Ralph Murdock, president of Foreclosure Information, says most postings don’t result in foreclosures, but a significant increase in the number of postings shows that more property owners are having problems.” [Houston Business Journal]

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Thursday, August 6, 2009

Alabama Bookstop Stop Date: September 15th

That summer clearance sale that’s been going on at the Bookstop in the Alabama Theater Shopping Center on South Shepherd is uh, final. The store will be closing for good on September 15th. The new Barnes & Noble in the River Oaks Shopping Center on West Gray will be opening the next day (a bit sooner than was announced earlier), but no unsold books from the Bookstop location will be making the trip north.

So what happens to the Alabama Theater after then?

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Monday, July 13, 2009

The Finest Strip-Center Recital Hall in Houston

Hidden upstairs in that new double-decker strip center on the south side of 59 between the Kirby CVS and the feeder-road Chick-Fil-A, nestled between a hair salon and a spa, is a brand-new recital hall, outfitted with a 7-foot-5 Hamburg Steinway Model C grand piano and room for up to 100 fans of fine classical music. Leave the curtains on the back wall open, and performers can appreciate a sweeping view of the freeway traffic as they play.

The hall is inside the brand-new Dowling Music, a gifts-and-sheet-music store run by concert pianist Richard Dowling, who recently returned to his hometown and bought the Houston branch of Pender’s Music (which Pender’s had bought from the local Wadler-Kaplan Music Shop in 2000).

The strip center and its neighbors were built on the former Kirby Dr. site of Westheimer Transfer & Storage, which former Rockets star Hakeem Olajuwon bought in 2002. Olajuwon demolished the building and flipped the land, parceling it out in pieces to suburban-style developers.

Dowling, who performs about 60 concerts a year around the world, can’t have expected much walk-in business from visitors patronizing other establishments in the strip center. Downstairs from his store is the Methodist Breast Imaging Center; an Israeli martial arts studio, a weight-loss clinic, a GolfTEC indoor golf clinic, and the Pasha Snoring & Sinus Center round out the second floor. But Dowling tells the West University Examiner’s Steve Mark that traffic has doubled since he moved the store from its Portwest Dr. location:

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Wednesday, July 8, 2009

Just Couldn’t Say Goodbye: Otto’s, Back from the Edge of the Market

That plan by the owners of Otto’s Bar B Q and Hamburgers on Memorial Dr. to shut down the restaurant, sell the land, and retire on the proceeds didn’t end up going so well after all, the Houston Business Journal’s Allison Wollam notices. The 58-year-old restaurant

was slated to be demolished to make way for the sale of the high-profile Memorial Drive land, but the restaurant has now fully reopened after the owners were unable to find a buyer for the property. The hamburger side of the two-sided restaurant has remained in business, but the portion selling barbecue closed for a time. A sign on the door says the barbecue side of the restaurant celebrated a grand reopening on April 15.

But word of the reopening seems to be spreading slowly. The once-bustling parking lot of the restaurant, for example, was only sparsely populated during lunchtime on a day earlier [last] week.

The owners, June and Marcus Sofka, were told they might be able to get as much as $150 a square foot for their property when they listed it with Cushman & Wakefield at the end of 2007. But a real estate broker tells Wollam the 1.3-acre Otto’s property at 5502 Memorial Dr. and the 17,000-sq.-ft. shopping center the couple owns next door might be worth a little less than half of that today.

Photo: Flickr users Bob & Lorraine Kelly

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Friday, June 26, 2009

Cleaning Up After the Westheimer Park Apartments

   

“Austin-based Falcon Southwest expects the demolition to be complete by July on the 185-unit complex at 9235 Westheimer, between Fondren and Gessner. Phil Capron, president of Falcon Southwest, says the property was under contract late last year to an apartment developer who wanted to build a five-story complex on the 4.8-acre site. The developer, whom he won’t name, could not get financing because of market conditions. Falcon Southwest will plant grass on the site before relisting it because “it will show better totally clean,” Capron says. He hopes to sell the tract for $30 to $35 per square foot, which would put the price between $6.3 million and $7.4 million. Falcon Southwest also owns the next door Westheimer Terrace Apartments, which are not for sale now, but Capron says will be at some time in the future.” [Houston Business Journal; previously on Swamplot]

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Thursday, June 25, 2009

Comment of the Day: Bookstop Full Stop

   

“A few comments from a reliable source who actually knows a few things about River Oaks SC and Alabama Theater.
1. Barnes and Noble owns Bookstop. They are closing it to move to the new location at ROSC.

2. Weingarten has no intent of demolishing the Alabama Theater. They have been marketing the space for re-use. They intend to restore the facade when a new tenant signs on.

3. The new portion of ROSC was designed by Altoon + Porter (of the Fashion Show flying saucer mall in Vegas fame) out of Los Angeles. Weingarten did not want the usual EIFS crap that the Houston architects do.

4. Weingarten’s long term interest in ROSC is to achieve the highest and best use for this property. They want to bring a higher density to the center that they feel is appropriate for its location.

5. Before the crash last fall they were working on a plan to improve the walk-a-bility of the ROSC through landscaping and art. I believe the project is on hold right now. Its interesting how everyone is in favor of density (less driving and more walking) except when it affects something in your backyard. If you don’t like the scale of the building or the lack of protection of historic structures in the city, call the mayor and the planning department. Disclosure: I do not work for Weingarten and don’t always agree with their decisions, but thought that this info would be useful. Flame on everyone!” [mt, commenting on Coming Soon to the River Oaks Shopping Center]

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