A Swamplot reader sends photos of a few trees recently marked for chopping on the Richmond Ave esplanade across from 11 and 9 Greenway Plaza, between Timmons Ln. and Edloe St. Pictured at top are the western 2 of the 3 trees total that now stand with white death warrants tacked to their trunks.
The third — shown below — sits closer to Edloe:
What’s going on at Greenway Plaza besides the coming Lifetime Fitness and the patio addition west of Edloe? A new covered walkway now traverses the complex’s Fountain Green — linking buildings 9 and 11 to each other at ground level. The path divides the quadrant into 2 separate lawns: one to the north where the fountain pictured at top bubbles up behind the row of flags that line Richmond. The other, to the south, is a smaller strip along City Club Dr.
A rendering of the renovated plaza from its then-owner Parkway (which was bought by the Canada Pension Plan Investment Board last year) shows the full partition:
HOW A CANADIAN PENSION FUND FOUND ITS WAY TO SWALLOWING A BUNCH OF HOUSTON OFFICE BUILDINGS 
Ralph Bivins explains how it came to pass that the Canada Pension Plan Investment Board, with its now-completed purchase of REIT Parkway, became the owner of 8.7 million sq. ft. of office space in Houston, including Greenway Plaza, CityWest Place, San Felipe Plaza, the Phoenix Tower, and Post Oak Central: “At one time Cousins and Parkway were separate companies with sizable holdings in Houston. The Houston office market tanked when oil fell from a high of $107 a barrel in June 2014 to less than $30 a barrel in early 2016. Houston energy firms laid off thousands of employees and vacated huge chunks of office space. Publicly traded firms with significant portfolios of Houston office space were under pressure. Security analysts criticized them. So Cousins and Parkway merged, all of the Houston properties were stripped out and placed into a new company, Parkway Inc. Now, the oil markets have stabilized. Houston’s office market is still soft and vacancies are high, but it appears to be on the road to recovery.” [Realty News Report] Photo of Greenway Plaza: Brent Oldbury, via Swamplot Flickr pool
Workers last week removed a few trees in the way of a new partition of Fountain Green, the plaza that stretches between Buildings 9 and 11 in Greenway Plaza just west of Edloe. Included in the scheme: A new separate lawn space on the green’s southern end, separated from the fountain by a covered walkway stretching between the 2 buildings; a separate canopy structure on the new lawn’s east side; and a new patio just behind that and in front of Building 9 — where a new restaurant designed by Austin architect Michael Hsu is planned. The aerial and ground-level views above shows the path being cleared for the walkway. Looking onto the green from the south across City Club Dr. is the former Houston City Club building, currently on its way to being refurbished for its new life as a location of Lifetime Fitness.
Renderings of the space shown by Greenway Plaza owner Parkway in March of this year, before it was announced that the Houston REIT was being bought by the Canada Pension Plan Investment Board, show the general contours of the plan:
The Houston City Club, best known to passersby as that parking-garage-like building tucked deep in Greenway Plaza across Norfolk St. from Lakewood Church — and to members and guests as perhaps the best indoor tennis venue in the city — will be shutting down forever on June 12th. On the sorta-main-entrance side off City Club Dr. between Edloe and Timmons, the athletic club and event venue has this classic view onto the Greenway Plaza plaza between office buildings Greenway 9 and 11:
A reader sends this fresh snap of the in-progress tower towering at 3773 Richmond Ave, where a glass skin is now growing on the northern facade. Those top stories now getting glassed in will be occupied by out-of-the-region Regions Bank; the compound will be named Regions Financial Center to match.
The 11-story office tower just west of Timmons Ln. has been working on looming dramatically over next-door single-story hand carwash Soap since December of 2014, and is expected to wrap up some time next quarter. In the meanwhile, here’s a video tour of what the whole thing could look like — including a cameo appearance by a Jenni’s Noodle Shop in a ground-floor retail spot (around 30 seconds in):
FOOD TRUCK GOING FOOD COURT 
Next venue for the 2-truck Chinese-food-about-town hotspot known as the Rice Box? A non-mobile location in the food court at 5 E. Greenway Plaza, Alison Cook reports: “[Owner John] Peterson has signed on Jim Herd’s Collaborative Projects to design a Rice Box Greenway prototype that will set it apart from its more conventional neighbors. Under a crimson sea of 80 Chinese lanterns (one of the visual totems on the original Rice Box truck), informal barstool seating will range across a counter overlooking oscillating video panels and a custom tea bar. The menu will appear on its own video screen. Red roof tiles from China have been ordered to construct an awning over the counter. ‘It’s one step closer to the White Dragon Noodle Bar,‘ jokes Peterson, referring to the Blade Runner food stand that was his visual inspiration for the Rice Box truck. (All he and Herd need to do is rig some kind of periodic rain showers.)” [Food Chronicles] Photo: The Rice Box
This was the scene yesterday on the southeast corner of Richmond Ave and Cummins St. near Greenway Plaza, where the Redstone Companies and Hansen Partners are planning to build a new 11-story office building and 5-level parking garage with — if a Planning Dept. staff report describing the project is correct — an attached 5-story retail center. The development received planning commission approval last week for a reduced setback along the 2 streets that meets with planned but not-yet-approved standards for transit corridors; if Metro’s stalled University Line ever gets built, it’ll make its get-off-of-Richmond turn at this same corner. Accordingly, in documents submitted to the city, the developers appear to be holding out the undescribed retail portion for some later date: [Only] “the office building and related parking garage to be built on this site are nearing the time that a building permit will be required,” the variance application reads.
Houston’s City Council voted 13-2 yesterday to sell the former Compaq Center to the nation’s largest megachurch for a grand total of $7.5 million dollars. Sure, that’s considerably less than the $22.6 million the city would have received for a 30-year extension of Lakewood Church’s current lease on what used to be homecourt of the Houston Rockets. But the city wouldn’t see the beginning of that income stream for 24 years, and it might be a full 54 years before the city could get the building and those 7 acres of Greenway Plaza land back — presuming either is worth anything at all by then. And really, who’s even going to want to be around this city in 2064?
That $7.5 million isn’t exactly chump change, either. If each of the church’s approximately 43,500 weekly visitors throws a dollar into one of those collection buckets, it’ll take them all of 3 and a half years just to pay the darn thing off!
But did the city even have a choice in the matter?
From the Twitter feed of KHOU reporter Alex Sanz, Swamplot hears news that Houston’s city council has postponed a vote on a proposal to sell the former Compaq Center at 3700 Southwest Fwy. in Greenway Plaza to Lakewood Church, for an-appraised-but way-below-assessed-value price of $7.5 million. As Swamplot explained yesterday, the church has more than 20 years left on a prepaid lease for the property and an option to extend the lease for an additional 30 years after that for a little more than $22 million — both of which significantly affect the present value of the property to the city.
Is the postponement of the sale a setback for Lakewood? Why should it be!? Followers of church pastor Joel Osteen, who’s now written 3 books filled with real-estate investment advice, know that he advocates patience — especially in complicated sale or purchase situations. Why wouldn’t he want councilmembers to feel entirely comfortable with the decision they come to?
Here’s how Osteen explains it in a relevant passage from his latest book, It’s Your Time:
You might be thinking, “How can I buy me some prime Greenway Plaza real estate from the city for, say $12.50 a square foot?” If, as expected, city council approves the sale in tomorrow’s meeting, that’s the amount Lakewood Church will pay for the Southwest Freeway building it’s currently leasing.
Lakewood took out a 30-year lease on the property — which formerly served as home court for the Houston Rockets, first as the Houston Summit, and later as the Compaq Center — in 2001. Lakewood prepaid the entire $11.8 million lease amount, then spent more than $80 million to turn the former basketball arena into a proper TV-worthy megachurch. But the key to Lakewood’s current real estate good fortune is the lease extension it negotiated: an option to extend the lease for an additional 30 years for $22.6 million.
Since the city likely won’t receive any income (or tax revenue) from the property until the year 2061, city real estate managers think selling the 606,000-sq.-ft. property on more than 7 acres at 3700 Southwest Fwy. to the church is a good idea. The price? A value only net-present-value adherents, real-estate appraisers, and the Lakewood faithful could love: $7.5 million.
Feeling a little inspired by the church’s ability to swing such a deal? It is yet another testament to the remarkable real-estate skills of Houston’s leading property-investment guru, Lakewood Church pastor Joel Osteen. In this passage from his latest book, It’s Your Time, Osteen virtually screams, “GET IN FIRST, BUY LATER”:
City officials are discussing a possible sale of the former basketball stadium now occupied by the nation’s largest megachurch, reports the Chronicle‘s Nancy Sarnoff. When Lakewood Church took over the Compaq Center (formerly the Houston Summit) from the city in 2001, the institution prepayed the entire $12 million rent amount of the 30-year lease, and spent considerably more than that on renovations. The city won’t see any more income from the property for 22 years. According to the agreement, Lakewood has the option of extending its lease for a second 30-year period, for $22.6 million.
How much could the city get for the little church by the Southwest Freeway?
What do all these Houston office towers have in common?
That’s right — they’re all part of the vast Crescent Real Estate Equities empire, which at the peak of the market 2 years ago comprised 54 properties in all, stretching from Texas to the California coast. That’s when Morgan Stanley snatched up the whole thing for a mere $6.5 billion, thanks in part to a little $2 billion loan from Barclays Capital.
Today, Morgan Stanley announced it is giving up on the whole thing. Back to the bank all those properties go. All of them. (Okay, minus a few that were jettisoned along the way.)
