07/13/09 11:29am

Hidden upstairs in that new double-decker strip center on the south side of 59 between the Kirby CVS and the feeder-road Chick-Fil-A, nestled between a hair salon and a spa, is a brand-new recital hall, outfitted with a 7-foot-5 Hamburg Steinway Model C grand piano and room for up to 100 fans of fine classical music. Leave the curtains on the back wall open, and performers can appreciate a sweeping view of the freeway traffic as they play.

The hall is inside the brand-new Dowling Music, a gifts-and-sheet-music store run by concert pianist Richard Dowling, who recently returned to his hometown and bought the Houston branch of Pender’s Music (which Pender’s had bought from the local Wadler-Kaplan Music Shop in 2000).

The strip center and its neighbors were built on the former Kirby Dr. site of Westheimer Transfer & Storage, which former Rockets star Hakeem Olajuwon bought in 2002. Olajuwon demolished the building and flipped the land, parceling it out in pieces to suburban-style developers.

Dowling, who performs about 60 concerts a year around the world, can’t have expected much walk-in business from visitors patronizing other establishments in the strip center. Downstairs from his store is the Methodist Breast Imaging Center; an Israeli martial arts studio, a weight-loss clinic, a GolfTEC indoor golf clinic, and the Pasha Snoring & Sinus Center round out the second floor. But Dowling tells the West University Examiner‘s Steve Mark that traffic has doubled since he moved the store from its Portwest Dr. location:

CONTINUE READING THIS STORY

07/08/09 5:55pm

That plan by the owners of Otto’s Bar B Q and Hamburgers on Memorial Dr. to shut down the restaurant, sell the land, and retire on the proceeds didn’t end up going so well after all, the Houston Business Journal‘s Allison Wollam notices. The 58-year-old restaurant

was slated to be demolished to make way for the sale of the high-profile Memorial Drive land, but the restaurant has now fully reopened after the owners were unable to find a buyer for the property. The hamburger side of the two-sided restaurant has remained in business, but the portion selling barbecue closed for a time. A sign on the door says the barbecue side of the restaurant celebrated a grand reopening on April 15.

But word of the reopening seems to be spreading slowly. The once-bustling parking lot of the restaurant, for example, was only sparsely populated during lunchtime on a day earlier [last] week.

The owners, June and Marcus Sofka, were told they might be able to get as much as $150 a square foot for their property when they listed it with Cushman & Wakefield at the end of 2007. But a real estate broker tells Wollam the 1.3-acre Otto’s property at 5502 Memorial Dr. and the 17,000-sq.-ft. shopping center the couple owns next door might be worth a little less than half of that today.

Photo: Flickr users Bob & Lorraine Kelly

06/26/09 1:25pm

CLEANING UP AFTER THE WESTHEIMER PARK APARTMENTS “Austin-based Falcon Southwest expects the demolition to be complete by July on the 185-unit complex at 9235 Westheimer, between Fondren and Gessner. Phil Capron, president of Falcon Southwest, says the property was under contract late last year to an apartment developer who wanted to build a five-story complex on the 4.8-acre site. The developer, whom he won’t name, could not get financing because of market conditions. Falcon Southwest will plant grass on the site before relisting it because “it will show better totally clean,” Capron says. He hopes to sell the tract for $30 to $35 per square foot, which would put the price between $6.3 million and $7.4 million. Falcon Southwest also owns the next door Westheimer Terrace Apartments, which are not for sale now, but Capron says will be at some time in the future.” [Houston Business Journal; previously on Swamplot]

06/25/09 3:55pm

COMMENT OF THE DAY: BOOKSTOP FULL STOP “A few comments from a reliable source who actually knows a few things about River Oaks SC and Alabama Theater. 1. Barnes and Noble owns Bookstop. They are closing it to move to the new location at ROSC. 2. Weingarten has no intent of demolishing the Alabama Theater. They have been marketing the space for re-use. They intend to restore the facade when a new tenant signs on. 3. The new portion of ROSC was designed by Altoon + Porter (of the Fashion Show flying saucer mall in Vegas fame) out of Los Angeles. Weingarten did not want the usual EIFS crap that the Houston architects do. 4. Weingarten’s long term interest in ROSC is to achieve the highest and best use for this property. They want to bring a higher density to the center that they feel is appropriate for its location. 5. Before the crash last fall they were working on a plan to improve the walk-a-bility of the ROSC through landscaping and art. I believe the project is on hold right now. Its interesting how everyone is in favor of density (less driving and more walking) except when it affects something in your backyard. If you don’t like the scale of the building or the lack of protection of historic structures in the city, call the mayor and the planning department. Disclosure: I do not work for Weingarten and don’t always agree with their decisions, but thought that this info would be useful. Flame on everyone!” [mt, commenting on Coming Soon to the River Oaks Shopping Center]

06/25/09 12:36pm

Armed with a camera, two enterprising Swamplot readers set out to document the retail carnage along South Shepherd, between 59 and the Shepherd Curve:

The sheer number of businesses that have disappeared along Shepherd in 4 months has been stupefying. This is with a large, new, empty Weingarten development at one end …and the chronically empty Shepherd Plaza at the other. Hell, we have gone from 4 Starbucks to 3!!

That’s a 25 percent reduction in mocha lattes alone. How about in some of the other sectors?

Granted, there have been some new businesses, a Hallmark store, a dance studio, and something seems to have filled the lingerie place at Welch and Shepherd, but the vacancy rate now stands at 22%!!! We counted 172 retail “units” and found 37 of them to be empty. As recently as February, I remember only about a dozen vacancies.

What are the sights?

CONTINUE READING THIS STORY

06/24/09 1:52pm

Writing in the River Oaks Examiner, Cynthia Lescalleet has a few updates on the River Oaks Shopping Center. Here’s what Swamplot has pieced together:

What else?

CONTINUE READING THIS STORY

05/20/09 2:23pm



The Lone Star
College System’s $42.2 million purchase price for that chunk of the former Compaq campus it closed on last month turns out to be $100 million less than the amount it had offered to Hewlett-Packard for the property a year earlier, reports Wall Street Journal reporter Maura Webber Sadovi. A few more tidbits from her report on the second-largest office purchase in the U.S. so far this year (The auction of Boston’s 1.8 million-sq.-ft. Hancock Tower for $660 million in March was the biggest):

The $35-a-square-foot price Lone Star paid was below the $57 average paid for the few suburban Houston office properties sold in the first quarter of 2009 and a deep discount to the $145 per-square-foot suburban average in the year-earlier first quarter, according to Real Capital Analytics, a New York-based real-estate-research firm.

Expect to see administrators of the Lone Star College System (known until recently as the North Harris Montgomery Community College System) lounging around in some of the executive furniture HP threw into the deal at the last minute as well. How did they strike this bargain?

CONTINUE READING THIS STORY

05/08/09 10:05am

What’s a struggling mall to do these days? How about turning off the air conditioning . . . and hosting a comic-book convention! Robert W. Boyd reports from the scene:

Despite a great location [on Highway 6 between Westheimer and Richmond] and not bad interior, West Oaks Mall is plagued with vacancies. And unlike malls like Memorial City Mall, West Oaks is not able to hide the gaps. . . .

West Oaks needed to occupy its empty stores (even if temporarily), or at least cover them up. And it needed to get people in the mall who could at least potentially patronize the remaining stores. So that’s where Comicpalooza came in.

CONTINUE READING THIS STORY

05/01/09 11:33am

HEWLETT PACKARD GOES TO SCHOOL The purchase by the Lone Star College System (formerly the North Harris Montgomery Community College System) of the “core” of the former HP, former Compaq Computer campus at 249 and Louetta is now a done deal, chancellor Richard Carpenter reports: “The purchase includes approximately 1.2 million square feet of buildings as well as parking garages and other support infrastructure. This facility will serve multiple purposes for our system as we continue to grow and expand; however the center piece of the campus will be a new University Center to serve north Harris County that is expected to include at least eight university partners. In addition to the University Center, the campus will also house an instructional satellite center, Corporate College conference and training facilities, LSCS office space, as well as room for new program development and expansion.” [Swamplot inbox; previously on Swamplot]

04/20/09 1:14pm

COMMENT OF THE DAY: WILSHIRE VILLAGE PAYMENT DUE “I forgot to mention that with regard to the loan Dilick took out to pay for taxes on the property four years ago, sources have reported that the bank set a deadline of early April 2009 for him to take steps toward paying back that loan. In demolishing the apartments and selling the land, Dilick would be able to pay back the loan and make a profit as well. . . . As to the comment, ‘This is private property. The owner should be able to do with it as he sees fit,’ the problem is that Jay Cohen, who inherited the property from his parents, still holds 80 percent ownership. Sadly, he was duped or forced by circumstance into signing over managing control to Dilick. . . .” [dredger, commenting on Comment of the Day: Grand Unified Wilshire Village Conspiracy Theory]

04/10/09 2:01pm

COMPAQ TO HP TO COLLEGE The Lone Star College System — formerly known as North Harris Montgomery Community College System — appears to be the mystery buyer for those 8 empty office buildings in the former Hewlett-Packard, former-Compaq campus at 249 and Louetta. Or at least a few of them: “The property would be used for educational purposes, but the size of the acquisition is still being determined, said Steve Lestarjette, associate vice chancellor of public affairs for Lone Star College. HP declined comment Thursday.” [Houston Chronicle]

04/01/09 3:31pm

ANOTHER BUYER FOR HP PARTS Somebody’s interested in those 8 empty office buildings on the former Compaq Computer campus off 249 and Louetta: “A little more than a year after Hewlett-Packard Co. put its 103-acre office campus on the sales block, the computer company is working with a buyer to finalize a sales agreement. Sources involved with the deal tell GlobeSt.com that following months of negotiations, the 2-million-square-foot office campus could be under contract within the next few weeks to a local buyer.” [Globe St.]

03/20/09 4:40pm

COMMENT OF THE DAY: FORMER WEST OAKS MALL OWNER TO RETIRE IN NEW HOME [Edward H. Okun] has been in jail since he was arrested by the Feds March 17, 2008. This week he was convicted in a Richmond, Va. Federal Court of 23 counts of conspiracy to commit wire fraud, money laundering, bulk cash smuggling and perjury the maximum sentence for which is 400 years so ‘Fast Eddie’ will die in a federal prison. All those charges related to his having ‘borrowed’ $126 million in 1031 exchange funds he was holding in escrow for 350 clients across the country. His cohorts and co-conspirators had previously pleaded guilty 10 years (Lara Coleman) and 5 years (David Field and Richard Simring) — all former employees (CCO, CFO and Counsel to) IPofA, Okun’s supposed real estate investment company. His defense tried to describe him as a business man with a plan that failed. West Oaks Mall would be just one example of Okun’s brilliant investment acumen. More indictments likely to follow.” [E. H. Callanan, commenting on JCPenney at West Oaks Mall: To the Bank]

03/19/09 4:07pm

TAKING A BITE OUT OF WHOLE FOODS That new Whole Foods Market coming to Post Oak Blvd. in the Galleria may not end up being quite the giant originally envisioned, says Nancy Sarnoff: “Developer Ed Wulfe, who’s building the BLVD Place mixed-use project where the Whole Foods will go, recently said the parties are working on amending the lease to reduce the size of the store, originally planned for 80,000 square feet. Put in context, the Kirby Whole Foods is about 40,000 square feet and Central Market is about 75,000 square feet. An 80,000-square-foot store would have been on par with the company’s flagship market in Austin, where customers can eat at mini-restaurants, chose from hundreds of varieties of beer, cheeses and a seafood counter that smokes, slices and fries to order. In a related move, Whole Foods recently announced that it was keeping its store on Woodway and Voss open. The plan was to close it when the Post Oak store opened. [Houston Chronicle; previously in Swamplot]

03/17/09 4:05pm

COMMENT OF THE DAY: WHITE OAK DECO STRIP “Per HAIF, the tower rendering on this sign has been replaced by a rendering of a renovated version of the current retail center.” [ArlingtonSt, commenting on White Oak Tower: It Was All Just a Bad Drawing]