COMMENT OF THE DAY: THE RENTS ARE TOO DAMN HIGH “Finally some progressive thinking from a Houston property owner. Houston is filled with vacant junk space left over from failed retail projects priced at ridiculous, speculative prices. The kind of development necessary to pay the outrageous rent asked by property managers and owners for dilapidated spaces just isn’t supported by the market here. There are only so many Applebees etc. that can be crammed into a given area. I’ve never figured out why keeping a space vacant is better than reducing the rent and making it accessable to artists, creatives, and small business owners. If things go well for them the neighborhood becomes more viable and lively, crime goes down, rent goes up and it’s on to the next neighborhood. It’s a win for everyone.” [JE, commenting on New Arts Complex Planned for Abandoned JCPenney at West Oaks Mall]
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Commercial Real Estate
If, as rumored, Skanska USA Commercial Development is the buyer of this sprawling former ARCO building at 15375 Memorial Dr. west of Eldridge, the Swedish construction giant will soon be the owner of a small one-of-each collection of Houston office types: The Houston Club building Downtown, the 20-story tower Kirksey designed for the company that just began construction on the Galleria side of the West Loop, and this 21-acre Energy Corridor campus. According to reports, the company is likely to tear down both the Memorial Dr. building and the one Downtown and build office buildings on each site from scratch.
- Houston office developers rev up Energy Corridor projects [Houston Business Journal]
- Previously on Swamplot: First Sign of Skanska: Where the New Spec Office Tower Near the Galleria Will Go, Skanska Helping Houston Club to Early Exit, Will Skanska Knock Down the Houston Club?, Skanska Post Oak Tower: We Don’t Need a Bank To Build This
Photo: Silberman Properties
COMMENT OF THE DAY: FEEDING THE WEST OAKS MALL JCPENNEY ARTS BEHEMOTH 
“At 100,000 square feet, it is more than twice as big as all the alternative/artist-run spaces currently in existence in Houston combined. If it can actually be filled with stuff and events in a compelling, convincing way, it moves the center of gravity for Houston art to the west purely by virtue of its size. The more I think about it, the challenge will be figuring out ways to effectively use that space. Usually the issue for an art exhibit is a lack of space — a show at, say, Labotanica can feel uncomfortably cramped. For a curator or artist, this space presents the precise opposite problem. A good model in this regard might be Mass MOCA, the enormous museum in North Adams, MA. Filling the cavernous old factory buildings required big, bold artworks. Are there Houston artists who could step up to this challenge? I’d say yes — for example, Sharon Engelstein’s inflatables.” [Robert Boyd, commenting on New Arts Complex Planned for Abandoned JCPenney at West Oaks Mall] Photo: Sharsten Plenge
How did an artist out of L.A. convince the owners of Houston’s West Oaks Mall to turn the vacant building of former mall anchor JCPenney into a 100,000-sq.-ft. department-store-sized arts complex? Well, it helps that the building — at the northern crotch of the West Houston mall — has been sitting vacant for 8 years and has received no major retail anchor interest in the 2 years Pacific Retail Capital Partners has owned the property. It also helps that the artist, Sharsten Plenge, is a Pacific Retail employee — and that her father is the firm’s managing principal. But Plenge tells Swamplot the company is behind her novel rehab concept, which is currently her main focus at work.
The Heights Life passes on drawings and details of the new Kroger grocery store and gas station planned for the former industrial property between Arne’s Warehouse and Party Store and I-10 at 1400 Studemont St. — from notes taken by a Super Neighborhood 22 representative who met with Kroger reps and council member Ed Gonzalez. Though at a planned 79,087 sq. ft. the store would be about 10,000 sq. ft. smaller than the recently renovated Heights store on 11th St. and Shepherd, it’ll look quite similar. The most interesting part of the site plan is the proposed connection of Hicks St., which turns off of Studemont south of the new store, to Summer St., which dead-ends into a parking lot currently filled with the heads of ex-Presidents, just south of the Sawyer Heights Target:
According to an unattributed report published today on Culturemap, beer-and-movie pioneer Alamo Drafthouse plans to open its second third Houston-area location at 2500 Summer St. off Sawyer in the First Ward, in David Adickes’s former SculpturWorx compound. But a spokesperson for the movie theater’s owners would neither confirm nor deny the plans either to Culturemap or the Chronicle. And Phil Arnett — who with partner L.E. “ Chap” Chapman announced plans last year to buy and redevelop the 3-building, 3-acre compound and convert portions of it into commercial space — tells Swamplot there’s “nothing definitive” about any Alamo Drafthouse plans. Representatives of Triple Tap Ventures, the theater’s parent company, did look at the space, but nothing’s come of it yet, Arnett says.
What large-scale construction project is that about to go up on the north side of the Katy Freeway opposite the 35-story spike-headed Memorial Hermann Tower, a reader wants to know. A sign for MetroNational contractor Anslow Bryant recently went up on the Gessner Rd. site, which was until last year the home of the Gessner Place Shopping Center and Korean grocery store Komart. “It appears that a portion of it (the immediate corner) has been fenced off & the construction signs have gone up,” asks the reader, who also sent in these photos. “My guess is whatever goes here will be vertical.”
A bit east of the tower, and on the opposite side of I-10, Anslow Bryant is currently constructing a 14-story tower for future MetroNational tenant Nexen Petroleum.
- Previously on Swamplot: Nexen Plan at Memorial City: Office Building Now, Strip Centers and More Later, The Cranes Come to Bunker Hill, Swamplot Street Sleuths: Komart’s Best Products, Swamplot Street Sleuths: From the Ruins of Komart Marketplace, There Will Be No Tours of the Death Star, and Other Details About the Hospital in the Belly of the Memorial Hermann Tower
Photos: Swamplot inbox
The new owners of the Heights building at the corner of 19th St. and Ashland that for 61 years housed the Harold’s in the Heights men’s clothing store have wasted no time in advertising the modern structure for lease or “redevelopment.” The Chronicle‘s David Kaplan reports that a partnership led by local development firm Braun Enterprises bought the property from the family of Harold Wiesenthal last week; a flyer for the 13,600-sq.-ft. property, which comes with a parking lot in back, hawks restaurant or retail space in chunks as small as 1,750 sq. ft. The glass-front building includes a 3,000-sq.-ft. second-story office space. Harold’s closed its doors for good in August.
- Harold’s, “modern landmark†on 19th Street, finds buyer [Prime Property]
- Harolds in the Heights [Braun Enterprises]
- Previously on Swamplot: Harold’s in the Heights Is Closing Down
Photo: Braun Enterprises
Changes to the exterior of the Alabama Theater proposed by Weingarten Realty to accommodate grocery store Trader Joe’s debut appearance in Houston were approved today by the city’s Archeological and Historical Commission. Because it’s a designated city landmark, the commission’s approval is required for changes to the building’s facades (though an alternate wait-90-days-and-you-can-do-whatever-you-want option is also available). Trader Joe’s or Weingarten’s plans to restore, alter, or strip the innards of the Art Deco building at 2922 S. Shepherd Dr., though, won’t require any commission approvals — only construction or demo permits.
Yes, Trader Joe’s wants to open what would likely be its first-ever Houston store at the long-vacant Alabama Theater at 2922 S. Shepherd Dr. — the vacant retail space last used as the home of the Alabama Bookstop. Nancy Sarnoff digs up the proposal for exterior alterations to the designated city landmark sent to the archeological and historical commission by shopping-center owner Weingarten Realty; the changes have already been approved by city staff. Included in the plans: Two big store signs on top of the marquee facing Shepherd . . . and a brand-new turret at the back entrance.
Development firm Read King is “gearing up to break ground on” a mixed-use project at the southwest corner of Shepherd and West Alabama, across the street from the shopping center that houses the vacant Alabama Theater. Real Estate Bisnow‘s Catie Brubaker says preleasing has already begun for 30,000 sq. ft. of “high-end” retail; the development would also include 250 luxury apartments. The targeted opening date is in the middle of 2013, so it shouldn’t much matter that the design “is still in flux,” right? The placeholder rendering appears to show 5 stories of apartments perched above 2 retail floors.
THE TOP-SECRET REAL ESTATE DEVELOPMENTS POSSIBLY COMING TO A LOCATION NEAR YOU So sorry, but we can’t tell you about Project Crawfish, Project Cabot, Project Computer Virus, Project Delta, Project Goldbeam, Project Race Car, or Project Texas H2O. They’re all hush-hush, you know. But Gil Staley of the Woodlands-area Economic Development Partnership says together they “represent 1,568 jobs and $335 million in capital investment” — the kinds of projects states and cities dig up tours, videos, and tax incentives for. Reporter Jennifer Dawson can, however, reveal the company behind the formerly mysterious Project 21, whose previously unidentified planners were snooping around Cedar Crossing in Baytown last year to see if the industrial park might work for an unspecified $200 million facility. Project 21 turned out to be a project of Mitsubishi Electric Power Products, but they ended up building the thing in Memphis instead. [Houston BizBlog; previously on Swamplot]
A TRADER JOE’S IN THE ALABAMA THEATER? 
3 months ago, Trader Joe’s announced plans to build 10 stores in Texas. But where? A little bird tells Nancy Sarnoff that the California-born grocer is exploring the possibility of taking the vacant Bookstop space in the former Alabama Theater on South Shepherd Dr. No official comment from Weingarten Realty or Trader Joe’s, but Sarnoff notes the theater space’s listed 14,000-or-so sq. ft. is right in the target range for a Trader Joe’s store. The space has been vacant for almost 2 years. [Prime Property; previously on Swamplot] Photo: Chris Adams
Whatever happened to that Park 8 condo tower, hospital, and strip-mall development planned for Beltway 8 next to Arthur Storey Park, just south of Bellaire Blvd.? The Chronicle‘s Purva Patel surveys the wreckage of the self-styled “Land of Oz”: The highrise project has long been in bankruptcy, the contractor and lender are battling over ownership of the land in court, and 2 different groups of investors and condo buyers are suing developer David Wu for their investment losses (totaling more than $2 million), alleging he has or had no intention or ability to complete the project, and that he misled them about funding and leasing commitments. Neither Wu nor his attorney would respond to the reporter’s questions.
COMMENT OF THE DAY: WHAT HAPPENED AT 301 STUDEWOOD 
“Tried to get Parks Board to purchase for years but they wouldnt go above $200k. They upped their offer to $600k in September of 2010, while property was under contract with restaurant group out of Austin which has 12 operating establishments in Texas.
Up against about the 8th round of foreclosure with a hard money lender who wasnt satisfied with his usurious rates of 21%+ per annum over three years and under pressure, lender ended up taking the property — taking a parks board offer and walking away with another $60k+ on top. Restaurant group pissed, owner still picking up pieces/dealing with lawsuits that should have been avoided. Restaurant group needed 30 more days, Parks would have taken 60. Lender would give no more time for either.
Should have filed for bankruptcy to stall the foreclosure and let deal transact but family was on last leg….after paying about $60-75k over 9 months to avoid repeated postings for foreclosure, as well as the ridiculous interest rates over the previous two years.
Lender also decided against paying the commission he promised for bringing the Parks Board deal. Real swell guy.
My apologies for the eyesore signs, maybe I will go reface them and at least get free advertising out of the deal.
Parks Board has no plans yet but turned down two offers in January from a Developer with backing out of the Mayors office. Demonstration housing. First offer they turned down was $800k, not sure about second offer but I can confirm it was turned down as well.
In regards to Parks, I had made some traction with GHORBA for an off-road bike park like they have in Austin, The topography, etc. would be rather perfect for that. Not sure where everyone is on the deal but I dont believe it is Parks highest priority at the moment. I will check in with everyone and let you know.” [JE, commenting on This is Woods. Park Is Not Available Right Now. May I Help You?] Photo: LoopNet
