THE RING OF CHEVRON 
Today’s the day Chevron is expected to close on the purchase of the 50-story former Enron headquarters building it’s already leasing at 1400 Smith St. downtown, which the oil company is buying from Brookfield Office Properties for an estimated $380 million. Already in Chevron’s hands: the second, César Pelli-designed Enron building at 1500 Louisiana, the parking lot and small building across the street from it. The company still plans to buy the lot down the street at 1600 Louisiana at the end of this year, once the YMCA finishes tearing down its building there. [Houston Chronicle; previously on Swamplot] Photo: Jonathan McIntosh [license]
Sign up for the Newsletter
Commercial Real Estate
LOOK OUT FOR SPROUTS 
Next little grocery chain likely to show up in Houston: Sprouts Farmers Market, out of Arizona. Page Partners managing principal Ed Page tells Nancy Sarnoff he’s “actively negotiating on some sites right now†for the fast-growing retailer to set up shop. Where? He wouldn’t say. But in Southern California, Sprouts took over a couple of former Circuit City stores, without even pulling the plug. Sprouts recently merged with a similar health-oriented chain — founded in San Diego by the same family — Henry’s Farmers Market. [Prime Property] Photo of Sprouts in Culver City: Retail Remix
GULF FREEWAY OUTLET MALL SITE: UP FOR GRABS? 
A possible complication in those plans to put a new 95-store outlet mall between the Big League Dreams sports complex and the Bay Colony shopping center west of the Gulf Freeway in League City: The Galveston County Daily News‘s Laura Elder reports that the 35 acres of land Tanger Factory Outlet Centers was hoping to purchase out of bankruptcy for $8.7 million will be going up for auction instead in just 10 days. A bankruptcy court ordered the sale last week. Tanger announced the project in January, just days after the Simon Property Group announced its plans to build another outlet center, the 100-store Galveston Premium Outlets, just 4 miles to the south, in Texas City. [Laura Elder’s Buzz Blog; previously on Swamplot] Rendering: Tanger Outlets
The longtime owners of the now-shuttered original Otto’s Bar B Que and Hamburgers on Memorial Dr. filed suit on Tuesday against their former broker, Cushman & Wakefield executive director David Cook, claiming that he failed to let them know about several offers to buy their property. As a result, the lawsuit claims, the owners ended up selling their real-estate holdings for — and settling into retirement with — only a third of the money they might have otherwise received. Marcus and June Sofka originally listed their restaurant at 5502 Memorial Dr. and some adjacent property with Cook in August 2007. Two months later, according to the suit, the Ponderosa Land Development Co. submitted a written offer for the land to Cook for $105 a sq. ft. But the Sofkas claim they didn’t hear about that offer until much later. Why wouldn’t Cook have given them such good news?
When last we visited the lonely blue-glass office building next to the former site of the River Oaks Hospital, just west of Greenway Plaza, the brand-new structure had only a single tenant — a doctor. That was more than 2 and a half years ago. But Cushman & Wakefield’s latest flyer for River Oaks Plaza at 4140 Southwest Fwy. (it’s been on the market ever since) lists the 5-story, 105,000-sq.-ft. building as “fully leased.” Was there a huge influx of tenants in the meantime? Not exactly, though a second doctor’s office did move into the building a bit later. In fact, both offices are leaving the building. That’s so the Art Institute of Houston can move in, beginning in July. The institute and its 2,300 students will relocate from this somewhat less see-through 6-story building at 1900 Yorktown, in the Galleria area:
COMMENT OF THE DAY: CONTEMPLATING THE MYSTERIES OF MEYER PARK “[I] drive by meyerpark twice a day going to and from work and i have no idea of exactly what the heck is going on in that massive construction site. In this day and age you would think the developer would have a website, a billboard, a flyer or something that provides the general public with more information about what’s going on. They’[ve] completely demolished several of the buildings but they left the tower in place. That leads me to believe they are going to some how use it as part of the new design. In addition to the Luby’s we need another restaurant like a Cheddar’s with Good food for a low price. I just think this area has so much potential for growth and [its] location is ideal.” [Joe_lsu, commenting on The New Smash Hits at the Meyer Park AMC 16 Theater]
COMMENT OF THE DAY: MYSTERY NEIGHBOR FOR THE MEYER PARK WALMART? “Well it looks like just about all of the vacant spots in that complex have been demolished. i know the Luby’s is moving and Kohl’s is moving in. there has to be something else planned to go in there. it’s too big of an area for just those two businesses. i’ve tried to call the management company but they’ve been tight lipped. you’d think they’d want to advertise and drum up as much business as possible in that spot. hope it doesn’t mean something craptastic is moving in. . . .” [Matthew, commenting on The New Smash Hits at the Meyer Park AMC 16 Theater]
Kroger has bought 8.5 acres of former industrial land on Studemont, just south of I-10, the Chronicle‘s Purva Patel reports. The land, which was once part of Houston’s Sixth Ward, sits just north of Arne’s Warehouse and Party Store and across the street from Grocers Supply. Kroger closed on the larger portion — a 7.2-acre cleared parcel at 1400 Studewood, listed for sale at $15.7 million — just last week. A spokesperson for the grocery chain wasn’t ready to announce a new store on the site, but did say the company had already taken possession of 1.3 acres just to the south, at 1200 Givens St. If Kroger does build a new supermarket there, the parking lot would have 450 ft. of frontage on Studemont; other industrial properties, many of them accessed from Summer St., would still be sandwiched between it and the Sawyer Heights Target.
Just as Swamplot was reporting on the leaked site plan showing that a new full-size Walmart SuperCenter is being planned off the Gulf Fwy. at South Wayside Dr., Councilmember James Rodriguez comes back from a meeting with the company waving a slightly different site plan. And look, this one shows the proposed East End store between Idylwood and the freeway has already slimmed down by 58,000 sq. ft.! Does that qualify as a rollback? Plus: This plan (shown above, again rotated to fit Swamplot’s format) features 13 more parking spaces! Meanwhile, Walmart spokesperson Kellie Duhr tells the Chronicle the new store would be “about 150,000 sq. ft.” and feature a full grocery. That number jibes with the plan above. Also included this time, at no additional charge: an extra Tire and Lube Express next to the Garden Center on the south side. One curious detail, though: Both this plan and the one featured in Swamplot’s story on Monday are labeled with the same date.
What’s going into the lot at the corner of Maxwell Rd. and the I-45 feeder next to the driveway at the southwest corner of the site, labeled “Outlot 1” on both plans? A source tells Swamplot it’s being eyed for a gas station from Walmart sidekick Murphy Oil.
- Wal-Mart eyes East End
- Previously on Swamplot: Surprise! Walmart Buying Land Next to Idylwood for Houston’s First Inner-Loop SuperCenter
Plan: Doucet and Associates
The first-ever inside-The-Loop Walmart SuperCenter will be built near the corner of South Wayside Dr. and the Gulf Freeway, a source tells Swamplot. The 28-acre site sits between Idylwood and I-45; according to a preliminary site plan currently making the rounds in that neighborhood, the store’s main entrance will be from Wayside, which also serves as the freeway entrance to a few other eastside neighborhoods, including Country Club Place and Forest Park.
According to Swamplot’s source, a real-estate entity connected to Walmart has an 8-month option to buy the property, home to 6 vacant warehouse buildings that once served as a distribution center for Oshman’s — as well as the former corporate offices of the defunct sporting goods company. Walmart has been completing its analysis of the property and is less than 30 days away from completing the land purchase, for a price of $35 a sq. ft., the source says.
Isn’t Walmart already planning its first Inner-Loop store on the other side of Downtown — just south of the Heights? Yes, but that store won’t be a SuperCenter. The Idylwood store is expected to measure approximately 210,000 sq. ft. — almost 60,000 sq. ft. larger than the planned Washington Heights District location. The site plan of the Idylwood store, which is not final (and which we’ve rotated to fit below), shows an asphalt parking lot with 722 spaces, plus a garden center on the store’s south side:
The HBJ’s Jennifer Dawson picks up an interesting detail about Springwoods Village, the mysterious eco-themed community being planned by a mysterious company for 1,800 mostly forested acres just south of the Woodlands, at the intersection of I-45, the Hardy Toll Road, and (someday) the Grand Parkway. Coventry Development, still won’t talk about the project’s connection to the rumored but not-yet-announced corporate campus ExxonMobil appears to be building next door, which is expected to consolidate most employees currently based in Houston and Fairfax, Virginia. But it sure looks like Coventry is banking on something big close by: Development director Keith Simon tells Dawson that
Coventry will develop commercial parcels in Springwoods before the residential acreage. The company’s strategy is to build commercial first to create tax value that will funnel money through the tax district to fund infrastructure.
Building standalone office parks and strip centers in the middle of a forest is, of course, a time-honored Houston development tradition. More often these days though, the sprawling houses go in first. But if the major centralized campus of the second-largest publicly traded company in the world is going to bring in thousands of workers nearby pretty soon anyway, yeah — what’s the point?
DOWN IN THE DYNAMO DISTRICT, FEELING THE LAND RUSH What’s happening to land values around the East Downtown site of Dynamo Stadium at Texas and Dowling? “Dave Cook with Cushman & Wakefield of Texas Inc. said he has six properties listed for sale in the area with an asking price of $50 per square foot, or nearly $2.2 million per acre. ‘That’s what the value will be when the soccer stadium is an actual reality,’ he said. Cook said property sold for $30 to $35 per square foot before the stadium site was acquired. An investor signed a contract last week, Cook added, to buy an 11,000-square-foot building on a one-acre tract at 2020 McKinney that’s leased to the City of Houston for parking administrative offices. The asking price was $2.2 million. ‘We got very close to that,’ said Cook, who would not reveal the actual sales price.” [Houston Business Journal]
“Dear Swamplot, Have I missed the story or has anyone else noticed that Barnes & Noble across from Galleria has closed and is being gutted?” Signs were posted at the Centre at Post Oak Shopping Center store as far back as September; the bookstore’s lease came up at the end of the year. Last we heard, Weingarten was still looking for a replacement.
Photo: Aaron Carpenter
Just days after Simon Property Group announced it would build a new 100-store Galveston Premium Outlets shopping center in Texas City, Tanger Factory Outlet Centers is ready to talk about the outlet mall it’s been planning for a 35-acre site just 4 miles to the north, in League City. Tanger’s 300,743-sq.-ft. mall, which the company says is in the “predevelopment phase,” would sit just north of the Bay Colony shopping center and just south of the Big League Dreams sports complex. And like the Simon Mall, it’ll be right near a Walmart too — the Supercenter across I-45 at FM 646.
If both malls sign up enough tenants to get built along the I-45 feeder road, it’ll help adjust the impression that huge swathes of undeveloped land remain between Houston and Galveston — at least for drivers headed south. The Chronicle‘s Purva Patel also reports on a third new mall being discussed for the area — from Taubman, but that company hasn’t announced its plans.
- 95-store outlet mall planned for League City [Galveston County Daily News]
- Developer may build outlet center in League City [Houston Chronicle]
- Previously on Swamplot: The Galveston Outlet Mall Coming to Texas City
Rendering: Tanger Outlets
COMMENT OF THE DAY: THE WAY IT WORKS IN HIGHLAND VILLAGE “. . . Not that it matters, but everyone in this story probably has a lot of money (or is about to go bust – you never know).” [andso, commenting on Tootsies Beats Back the Landlord: The Sale Must Go On!]