COMMENT OF THE DAY: THE INVENTION OF FEEDER FOOD “On another note, I would like to find out precisely who was responsible for making the philosophical decision to attach feeder roads to freeways in Texas in the first place, way back in the 50’s. Feeder Roads turned out to be an aesthetic disaster, helped kill off many local business districts, and led to the proliferation of countless mediocre restaurant chains.” [Mies, commenting on Comment of the Day: That’s Why They Call Them Feeder Roads]
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Tag: Commercial Real Estate
COMMENT OF THE DAY: CHIN UP, WEINGARTEN! “I don’t totally understand Weingarten’s defensiveness here. After all, they totally earned the wrath of people in the community who would like to see older, architecturally significant buildings preserved in some fashion when they tore down the north side of the shopping center at Shepherd and Gray. They made a calculation then that peoples’ upset feelings would not outweigh the financial benefit. Given this, why do they care what people think now? Did the negative publicity before actually hurt them in any material way? (I’ve made a point of not shopping at the new B&N even though I am a compulsive book-buyer, but I have no illusions that me and people like me have any impact on their bottom line.)” [RWB, commenting on Weingarten Exec Blames Those Alabama Theater Demolition Drawings on Staples]
Today’s Houston Business Journal features a rather surprising statement from a Weingarten Realty executive about the company’s recent plans for the vacant Alabama Theater. Late last month you’ll remember, Swamplot broke the story that a local construction company was obtaining bids from subcontractors for an extensive interior demolition of the vacant 1939 Art Deco movie theater at 2922 South Shepherd Dr. — using drawings prepared for Weingarten Realty by a local architecture firm.
Since that time, representatives of Weingarten, a publicly traded REIT, have been pushing back on the story to local reporters with a series of carefully worded statements. One such statement, delivered to both Swamplot and its readers the same day the story broke, by a spokesperson under contract to Weingarten, was typical: Weingarten, Swamplot was told, “can’t verify the authenticity of the drawings you posted on your blog one way or the other.”
Aw, shucks. And yet — if this statement in today’s HBJ is to be believed — it appears they certainly could have verified them:
Patti Bender, executive vice president with Weingarten, says the preliminary design that recently hit the streets was part of a site pricing analysis conducted by Staples.
Oh . . . does that mean Weingarten had no part in producing those drawings that showed exactly how the theater was to be gutted and its sloping floor encased in concrete? It was all Staples’s doing? Of course, those of you who have been following the story here on Swamplot realize there are just a couple problems with that statement:
In a letter published in today’s Chronicle, the PR director for Staples goes beyond her previous “we do not have a lease” statement and says the national office-supply chain is done with the idea of putting one of its stores in the vacant former Alabama Theater on South Shepherd at West Alabama — for now, at least:
. . . we are not currently considering a store at this site. We typically don’t comment about sites unless and until leases are signed, but we understand that this property represents a unique situation of local concern.
So what prompted theater owner Weingarten Realty to have a local architecture firm draw up plans for a complete interior scraping of the 1939 Art Deco theater — and arrange for at least one local construction firm solicit demolition bids based on it?
There’s a new sign up across the street from the Jack in the Box at the corner of West Dallas and Waugh, announcing the new Whole Foods Market. And an employee of the building’s architect, Beckham Design Group of Austin, confirms that the project was recently put out to bid to general contractors.
How big will it be? Another source indicates the new store is now scheduled to be approximately 48,000 sq. ft. — including a mezzanine. That’s up a bit from what we’d last heard: that the market would be 40,000 sq. ft. and include “eco-conscious elements and tons of inviting space for neighbors to congregate.” Whole Foods Market signed a 25-year lease for the land with The Finger Companies back in 2008.
Here’s an aerial view of the site the Finger Companies sent out last year:
COMMENT OF THE DAY: STILL WAITING FOR PARK 8 TO ARRIVE IN THE LAND OF OZ 
“Do you have any update on this project? I’m very curious to find out more about the status and what the projected outcome will be for the many buyers of this condo that is 3 years behind schedule.” [Caroling, commenting on Park 8 Chinatown Condo Project: Parked?] Rendering: Marketing Park8
A spokesperson for Buffalo Grille parking-lot tenant H-E-B confirms that the popular West U brunch-and-lunch spot will be moving from its current location on Bissonnet at Buffalo Speedway after its lease expires next year, “to a new location yet to be determined.” But one possible new location for the Buffalo Grille — a portion of the former JMH Market on Rice Blvd. — was just snapped up by the owners of Thompson + Hansen Nursery and Tiny Boxwood’s. The Buffalo Grille’s John McAleer tells the West University Examiner
“Right now…pickings are very slim. Any vacant space in the West U area, or the closest you can get to it, we’re looking at it. We have a year left, and we’re looking at that perfect location to find.”
How awkward: McAleer’s parents, Mac and Betty McAleer, “are part of the management team that owns the land on which the Buffalo Grille and H-E-B are situated,” the Examiner‘s Charlotte Aguilar and Steve Mark explain. And Molina’s Restaurant — displaced from the shopping center a few years ago when H-E-B redeveloped it — is still looking for its own replacement West U location.
COMMENT OF THE DAY: STAPLES “NOT INVOLVED” IN THE ALABAMA THEATER “After writing to Staples PR this is their canned response: ‘While there has been speculation about Staples in connection with the historic Alabama Theater, we do not have a lease agreement at this location. Staples will continue to be a good neighbor that supports the communities where its customers and associates live and work as the company continues expanding in the Houston region. The rumors, however, have sparked a larger debate about the location. Therefore, we recommend that concerned citizens direct their letters and suggestions to Weingarten Realty as we are not involved in this development. Many thanks, Amy Shanler, PR Director'” [Andrea, commenting on Weingarten Realty: We Won’t Demolish the Interior of the Alabama Theater Until a Lease Is Signed]
The new owners of the Alamo Drafthouse Cinema franchises in Katy and at the West Oaks Mall tell the Chronicle‘s Nancy Sarnoff they’ve begun new talks with Weingarten Realty about turning the former Alabama Theater into the first Inside-the-Loop location for the dinner-drinks-and-movie chain.
Triple Tap Ventures partner Neil Michaelsen tells Sarnoff his group had held discussions with Weingarten about the former Alabama Bookstop location at 2922 South Shepherd more than 6 months ago — but “couldn’t come to an agreement” about leasing the space. Triple Tap announced its purchase of the two Houston Alamo Drafthouse locations — and plans to construct new cinema locations in Amarillo, Corpus Christi, Lubbock, the Midland-Odessa area, San Marcos, and Houston — just last October.
Sarnoff explains that the Alabama Theater building isn’t exactly Triple Tap’s ideal location:
COMMENT OF THE DAY: WHAT MAKES THE ALABAMA THEATER SO EASY TO LEASE “Sigh. I’ve been told in the past that Weingarten would like to have a restaurant in this location, but with a rent that is probably in the low-mid 30’s/sf, that puts the monthly rent at around $35,000 a month, which is out of the price range of many retailers and restaurateurs. Also, 14,000 sf would be a huge restaurant. One of the other little discussed obstacles in this building is the balcony, and the low headroom that it provides at the lobby entrance. Most of the building is concrete but I’ve been told that the balcony is in fact a steel structure. I would not be surprised if the balcony does not survive. Regarding the sloped floor, it is extremely difficult to rent sloping space like that in the age of ADA. Bookstop was constructed prior (1984) to the implementation of ADA. . . .” [mt, commenting on Weingarten Realty: We Won’t Demolish the Interior of the Alabama Theater Until a Lease Is Signed]
How cheaply did the Ponderosa Land Development Co. pick up the 1.3 acres of land under Otto’s Bar B Que on Memorial Dr.?
“I won’t be able to ride off into the sunset with what I’m getting,†Otto’s co-owner June Sofka tells Jennifer Dawson of the Houston Business Journal. And that’s our only clue. Well, that and the fact that the shopping-center developers still had enough money left over to buy the property next door.
A new 2-story building on the 1.8-acre site between Asbury and Reinicke, on the southern border of Rice Military, is being designed by Kirksey.
The portion with Memorial frontage that will also be torn down to make way for the new project is owned by two sisters, one of whom is Wanda Greb. Their property contains Bibas Greek Pizza, M-T Nails, Memorial Barber Shop, Rich Cleaners and the hamburger restaurant segment of Otto’s, which is leased by the Sofkas.
Ponderosa intends to scrape the entire site and develop a 22,000-square-foot center with retail, restaurant and possibly some boutique office space. The project is expected to cost $6 million to $8 million, not including the land cost.
But wait, maybe not all of those businesses are disappearing from that location!
What’s the latest on those plans to demolish the interior of the Alabama Theater at West Alabama and Shepherd — you know, the plans already put out to bid to subcontractors but that owner Weingarten Realty can’t quite seem to verify are its own?
A spokesperson under contract to Weingarten tells Swamplot that the company won’t act on them before a lease agreement with a new tenant is signed:
I now have the okay to post based on your last blog entry to reassure your readers that WRI has no intention undertaking any pre-buildout of the interior prior to any lease agreement. And, there is no agreement currently and no buildout plan.
“Buildout,” of course, is the correct term for the interior demolition here. Because the demolition plans out to bid show that Weingarten intends to permanently encase the theater’s extensive sloped floor in concrete, like this:
COMMENT OF THE DAY: WE ARE ALL WEINGARTEN LEASING AGENTS NOW “. . . I’m not [against] historic preservation, but I find [it] silly and immature for people to attack Weingarten. If anybody could approach them with an idea or a plan to keep the theatre and turn it into a money making investment for any kind of use, I’m sure they’ll listen. If Weingarten could get a tenant without any changes to the space, wouldn’t you think they’ll go for that[?] They save a lot of money in that situation. They most likely looked into the gutting of the place since there isn’t much option for them. Saving a place purely on moral grounds that it is the right thing to do isn’t enough. It’s a place to start, but it’s a lot more that has to happen after that. In the end, a philanthropist or investor or a group of a combination of the two is needed. This group can either buy it out or develop a plan that Weingarten could get their rent and the place be saved. . . .” [kjb434, commenting on Weingarten Plans an Alabama Theater Demolition. Is Staples Moving In?]
Last night, a spokesperson under contract to Weingarten Realty writing on behalf of the company reported to Swamplot and its readers that the shopping-center owner “can’t verify the authenticity of the drawings” we reported on yesterday.
The drawings referred to are bid documents that Heights Venture Architects prepared for Weingarten detailing an extensive interior demolition of the 70-year-old Art Deco Alabama Theater at South Shepherd and West Alabama — more commonly known until its closing last September as the Alabama Bookstop bookstore.
Well, gee. Today, “an official” of Weingarten’s architecture firm isn’t having such a hard time with the verification process:
An official at Heights Venture Architects told CultureMap this morning that the company did submit plans detailing a near total interior demolition of the Alabama at the specific request of Weingarten (the company that owns the vacant building).
The official at Heights asked not to be named and said he had no speaking authority, but confirmed that the company had been asked to submit the plans, which Swamplot first published.
What a fun game! Now that this round is over, let’s jump to the next one: Okay, so maybe Weingarten did ask its architects to prepare demolition drawings. Maybe Weingarten is exploring all its options! Just pricing a complete demo for . . . say, comparison.
Here’s the same Weingarten spokesperson feeding this ruse:
COMMENT OF THE DAY: BREAKING IN THE NEXT GENERATION OF HOUSTON REAL ESTATE GO-GETTERS “Back when I worked [in] real estate, being a visionary was something of a liability. I’ve been laughed at in my face before by coworkers because I pitched an idea that was outside of the box. I made a couple of investments that were . . . driven by creativity, interest, passion, vision, legacy, AND also by ego. And on paper, they also made sense financially, but they turned out to be money pits. I really believed in them at the time and made an honest-to-goodness effort. But now I’m broke (and feel broken), am doing temp work for the Census, have no other prospects, and am looking at military options. The only redeeming quality about these investments is that they’d be so difficult to sell at this point that the bank doesn’t seem to want them back. If I invest again in real estate, it will be a much more boring endeavor, a commoditized investment following a traditional set of strategies. I’d want for a contractor to be able to show up at the job site, glance at the plans, and know EXACTLY what to do because they’ve done it a hundred times before. ‘Build me a rectangular prism.'” [TheNiche, commenting on Weingarten Plans an Alabama Theater Demolition. Is Staples Moving In?]