TRAMMELL CROW, 1914-2009 Real estate developer Trammell Crow, the founder of Trammell Crow Company (now a part of CB Richard Ellis), died yesterday in Tyler at the age of 94. “He relied on hundreds of young leasing agents to fill the buildings, and those who proved themselves talented and hardworking became partners. This approach marked the evolution of Crow’s then-unusual methods of working in the real estate industry. As he brought in new people to work on residential and commercial projects, he gave them an equity stake in the business. Crow explained that he believed the projects would thrive if the people managing them were partners rather than employees. He said people worked harder when they had a stake in the company. Biographer Robert Sobel said Crow had another reason for using the partnership strategy: By offering equity instead of pay, he conserved his capital for putting up buildings.” [Associated Press]
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Commercial Real Estate
There was no showdown over the River Oaks Shopping Center variance request at yesterday’s Planning Commission hearing. In talks prior to the meeting, Weingarten Realty used its mad skillz to assuage the most vocal neighbors with a few minor changes to the patio-topped porte-cochere facing Shepherd Drive — already under construction — that violated the setback:
. . . reduce the size of the balcony seating and enclose the seating area. That will result in a 30-inch encroachment into the area of the 25-foot setback.
Lower the 10-inch signage on the west side of the building facing Shepherd Drive.
Will remove external LED lights on the west side of the building and turn off flashing security box lights inside the parking garage.
Variance . . . granted! The screencapture above shows the revised, enclosed balcony shown at the hearing, which will be a part of Tony and Jeff Vallone’s new Il Tavolo restaurant and wine bar.
Weingarten knows how to keep more than just a noisy upstairs wine-bar quiet, notes abc13’s Miya Shay:
POST OAK LANE PARK DOLLAR TIMELINE: ALL THE OFFERS AND COUNTERS Following up on the overview of the controversy he and Carolyn Feibel published last week, Bradley Olsen provides this updated summary of all the offers made for James and Jock Collins’s 7,230-sq.-ft. property at the the corner of San Felipe and Post Oak Ln., adjacent to Boulevard Place: “In April 2002, the Uptown Development Authority offers the Collins brothers $289,000 for their property to widen San Felipe and for other purposes (they bought it for $363,750 in 1982). They declined. In February 2004, Uptown offers the Collins brothers $398,035 for their property. They declined. Wulfe & Co. begins negotiations with the brothers to buy the property in 2004. In early 2006 (one side says March, the other says May), Wulfe and Co. offered the Collins brothers $1.985 million, which included a $1.46 million cash offer plus financing of $525,000 over five years. The brothers declined that offer, both sides confirm. The brothers counter-offer by asking for $1.7 million in cash, according to Cary Gray, their attorney. In June 2006, Wulfe and Co. responded with a $1.46 million cash offer, which they withdraw in July, according to both sides. In October 2006, the city notifies the Collins brothers of its intent to seize the land through eminent domain powers. Before filing its eminent domain lawsuit, the city gives the brothers a final offer in May 2007 of $433,800. They declined. In February 2008, a panel of special commissioners appointed in Harris County Civil Court voted to award the Collins brothers $723,000. They declined. The legal proceedings between the city and the brothers are still ongoing and are in the discovery phase.” [Houston Chronicle]
Here’s something we can all feel tingly and nostalgic about: Developer Bobby Orr’s Heights-ish fantasy — of brand-new old-timey storefronts facing long streetside parking lots off Yale St. and Heights Blvd. just south of I-10 — is dead. The Chronicle‘s Nancy Sarnoff drops news of the demise of the Heights Village dream as an aside to her update on the stalled-out High Street development.
The entire 4.9-acre property, across Heights Blvd. from the ArtCar Museum, is back on the market, at $75 a square foot.
Sadly, Cushman & Wakefield’s listing for the property doesn’t include any misty watercolors to memorialize what might have been. But Swamplot remembers! Here’s a brief trip down invented-memory lane . . . in 3 quick images:
Problems getting credit have stalled or dashed hopes for many Houston developments, leaving vacant sites, ratty construction fences, and more than a few misleading “coming soon” signs touting unachievable goals. Off Westheimer just west of Mid Lane, though, we’ll have a much bigger and longer-lasting reminder of changed fortunes to look at, for a good long while: The steel frame of the first building in Trademark Property’s High Street project.
Work has stopped.
What happened?
Weingarten had no problem tearing down the first part of the River Oaks Shopping Center last year. But when it decided to replace the historic curved building at the northeast corner of West Gray and Shepherd with the semi-curved, semi-modern confection shown here, did the company go too far?
According to the GHPA, Weingarten is now seeking a variance to allow it to keep changes it made to the approved plans for the building — which have already been built. From a website referred to in a GHPA email:
The restaurant’s balcony facing Shepherd encroaches into the mandatory setback, violating Houston City Setback Requirements. Once the City was notified of the encroachment, construction of the encroaching porch was stopped—temporarily. . . . Weingarten Realty has requested that the Planning Commission grant a variance to permit this encroaching porch. Without objections from concerned citizens like you, the City will likely grant the variance request.
That restaurant is Jeff and Tony Vallone’s planned new Il Tavolo. After the jump, a portion of the Greater Houston Preservation Alliance’s message:
EMPTY SONOMA SITE UPDATE One possible future for the site of the shelved Sonoma development in the Rice Village: nothing — for a long time. “The 2400 block of Bolsover could remain undeveloped and in the possession of Lamesa Properties another seven-and-half years, according to the terms of the ordinance approving the street’s abandonment. A spokesman for the city said Monday in addition to the five years the agreement allowed for the completion of the retail-residential project and some traffic-related construction, an additional three-year extension can be granted at the ‘sole discretion’ of the director of Public Works. Under the terms of the sale of the street, the additional time could be allowed ‘for extenuating circumstances,’ city spokesman Alvin Wright said.” [West University Examiner]
HOUSTON’S LONELY STRIP CENTERS
Has the nail-salon bubble finally burst? Retail space in so many area strip centers lies vacant: “In the Houston area, much of the problem lies in strip centers built during the recent commercial real estate boom when inexperienced developers were throwing up small centers in areas close to new residential growth. In the third quarter, Houston-area strip centers recorded the lowest occupancy of all retail property types at 80.4 percent, according to the Colliers report. Some of these buildings went up away from highly coveted traffic corners, and before any tenants were signed — a risky proposition should something go wrong.” [Houston Chronicle]
What effects have difficulties with bank financing stemming from the global financial crisis had on some of those big new developments planned for Houston? The Houston Business Journal‘s Jennifer Dawson weighs in with a “Where Are They Now?” roundup:
- Regent Square: That big design change meant a year’s delay; the first parts of the 24-acre Inner Loop development are now scheduled to start construction in the second quarter of 2009. A marketing center will open at 1203 Dunlavy next month, but have some more official kickoff in February.
- Sonoma: “Called off — for now,” but you already knew that. According to Dawson, it wasn’t so much the banks but the developer that grew skittish: CONTINUE READING THIS STORY
The River Oaks version of Michael Reed’s Examiner story about Sonoma’s failed financing efforts quoted here yesterday has an additional Walgreens update appended. The halt in plans for developing the Sonoma won’t change anything:
Meanwhile, Walgreens spokesman Robert Elfinger said Monday the Rice Village store will close Dec. 31 as planned and will not be relocated.
- Sonoma and its off-again financing [River Oaks Examiner]
- Sonoma Developers: We Were So Close, Really! [Swamplot]
Photo of demolition on Bolsover St. last year: Jackson Myers
Sonoma’s would-be developers try to explain to West U Examiner reporter Michael Reed why the Rice Village retail-and-condo project was put “on hold” only a few weeks after the sales team sent out an email to prospective buyers claiming it had received financing:
Julie [Tysor], president of the Appelt Companies, said in an e-mail response to Examiner questions about the financing, “We had secured a substantial majority of the financing for the south building through the cooperation of some local lenders who have also supported this project since its inception.â€
She said a number of factors contributed to the financing falling through, “not the least of which is historical world economic crisis that is unprecedented…â€
So what’s going to happen to the site — which includes that block of Bolsover St. purchased from the city — now?
COSTCO SIDEWALK MAZE: BETTER FOR THE TREES Lee McGuire gets to the bottom of the wacky sidewalk screwup at Trammell Crow’s Greenway Commons, on the corner of Weslayan and Richmond: “It turns out the city actually required the new sidewalk to run right through the utility poles to save a row of trees. The developer said the project meets federal guidelines — except perhaps the blocked handicap ramp. The final inspection won’t take place until the shopping center is finished. If it’s in violation, the developer promises to fix it.” [11 News, via BlogHouston; previously]
Last month, a Sonoma sales rep told the West U Examiner that the project had secured financing — which turned out to be condo-sales-speak for “Maybe if people think we’re definitely going ahead we can still sell units and somehow find a way out of this mess.” Now Nancy Sarnoff reports in the Chronicle that the developer of the condos-and-retail complex slated for what used to be Bolsover St. in the Rice Village has told her that the project “is being put on hold ‘for the short term.’” This appears to be developer-speak for “We’re toast.”
Was the problem just “economic uncertainties and tumultuous credit markets”? After developer Lamesa Corp. and partner Randall Davis pulled their switcheroo, deciding to start with the project’s second phase because they couldn’t get the more grandiose first phase financed,
they went back to the market and were negotiating for a $70 million loan with 40 percent equity to build the smaller second phase of 85 units.
At that point they had nearly 70 buyers who had put down deposits. More than half were interested in the second building.
Translation: Almost half their buyers bailed.
There’s good news for the trashed 2-block section of the Village Sonoma leaves behind, though:
Yesterday’s City Council vote wasn’t even close — which means that Houston will no longer allow “attention-getting devices” on commercial property, effective January 1st of 2010. The ban excludes fake quoins, oversized Alamo-shaped parapets, and strip-mall turrets, but it pointedly includes the inflatable menageries that are so much simpler to put up and take down.
Houston sure knows how to destroy its architectural history! In honor of the passing of this singular era, which exhibited such a flowering of the local decorative arts — and in advance of the less-than-spectacular demolitions that are soon to follow, Swamplot presents this short photo salute to Houston’s soon-to-be lost commercial landscape:
The wise folks behind Greenway Commons — the new shopping center replacing the old HISD headquarters building at the corner of Richmond and Weslayan — have apparently taken some extra-special steps to make sure the new development (which includes a brand-new Costco) is super-friendly to pedestrian visitors!
Making everything welcoming to people arriving on foot makes sense — the project had been criticized for exhibiting suburban-style development patterns in a location that some dreamers had imagined would be a street-fronting mixed-use center. It’s already a busy corner, and Metro’s new University Line will have a stop only a short walk away.
But “easy to access” can also mean “boring.” So it’s comforting to see these pictures of the project’s street edge sent in by a reader, which show a gentle, fun infrastructure-themed obstacle course taking shape along the new Weslayan and Richmond sidewalks in front of Trammell Crow’s grand development:
