Tag: Leasing

Commercial Real Estate
04/05/10 11:17am

H-E-B Announces That the Buffalo Grille Is Moving — Somewhere

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Leasing, Openings and Closings, Parking, Restaurants, Retail, Shopping Centers, Strip Centers, West University
21 Comments

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.

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Comments
04/02/10 2:30pm

Comment of the Day: Staples “Not Involved” in the Alabama Theater

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Commercial Real Estate, Historic Preservation, Leasing, Quicklink, Shopping Centers, Strip Centers, Upper Kirby
1 Comment

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]

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Buying and Selling
04/01/10 10:23am

Real Estate Works In Mysterious Ways: Houston Agrees To Sell Lakewood Church to Lakewood Church

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Financing, Greenway Plaza, Leasing, Religious Facilities, Religious Institutions
21 Comments

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?

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Commercial Real Estate
03/31/10 4:19pm

Alamo Drafthouse to Weingarten: Why Gut the Alabama Theater When We Can Just Chop It in Half?

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Demolitions, Historic Preservation, Leasing, Renovations, Retail, Shopping Centers, Strip Centers, Upper Kirby
16 Comments

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:

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Adaptive Reuse
03/26/10 2:03pm

Comment of the Day: What Makes the Alabama Theater So Easy To Lease

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Comments, Commercial Real Estate, Demolitions, Historic Preservation, Leasing, Quicklink, Renovations, Retail, Shopping Centers, Strip Centers, Upper Kirby
8 Comments

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]

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Commercial Real Estate
03/25/10 4:34pm

Weingarten Realty: We Won’t Demolish the Interior of the Alabama Theater Until a Lease Is Signed

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Demolitions, Historic Preservation, Houston Architects, Leasing, Renovations, Retail, Shopping Centers, Strip Centers, Upper Kirby
10 Comments

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:

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Comments
03/25/10 3:00pm

Comment of the Day: We Are All Weingarten Leasing Agents Now

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Commercial Real Estate, Financing, Historic Preservation, Leasing, Quicklink, Real Estate Investing, Retail, Shopping Centers, Strip Centers, Upper Kirby
1 Comment

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?]

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Apartments
03/25/10 2:15pm

Live! Nude! Somewhere on the Roof!

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Attractions, Leasing, Real Estate Marketing, Upper Kirby
10 Comments

Is it sweeps week already? Or did the La Maison at River Oaks just step up its marketing game? 11 News reporter Courtney Zubowski corrals the KHOU newschopper to provide some “over the top” coverage of that clothing-optional sundeck on the roof of the French Quarter-themed apartment complex at 2727 Revere St., south of Westheimer. Alas, no one is taking advantage of the facility when she shows up, and judging from the aerial shots used in the report, neither camera operator nor editor seem to know exactly where the thing is.

A Swamplot reader throws out some more theories:

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Commercial Real Estate
03/24/10 3:56pm

Chasing Down Weingarten’s Mysterious “Alternatives” to Demolishing the Alabama Theater

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Historic Preservation, Houston Architects, Leasing, Openings and Closings, Renovations, Retail, Shopping Centers, Strip Centers, Upper Kirby
13 Comments

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:

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Buildings for Sale
03/24/10 10:43am

More Real Estate Wisdom from Joel Osteen: Let Them Get Comfortable with the Transaction, and Show Them My Smiling Face

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Buying and Selling, Greenway Plaza, Land for Sale, Leasing, Real Estate Investing, Religious Facilities
21 Comments

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:

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Commercial Real Estate
03/23/10 3:16pm

Weingarten’s Alabama Theater Plan: Speculative Demolition for Fun and Profit

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Historic Preservation, Houston Architects, Leasing, Openings and Closings, Renovations, Retail, Shopping Centers, Strip Centers, Upper Kirby
18 Comments

Weingarten Realty’s director of investor relations Kristin Gandy tells the Chronicle‘s Nancy Sarnoff that the owners of the vacant Alabama Theater building in the Alabama Shepherd Shopping Center at the corner of South Shepherd and West Alabama do not have a deal for the space with any new tenant, including Staples. Swamplot reported earlier this morning that a local construction firm is soliciting bids from subcontractors for an extensive interior demolition of the 1939 Art Deco theater, which from the early eighties until late last year was the home of the Alabama Bookstop bookstore. Drawings detailing the demolition were prepared for Weingarten by Heights Venture Architects, and the bid documents included floor plans for a prototype Staples office-supply store.

Gandy tells Sarnoff

Weingarten has not signed a lease nor has any lease under (letter of intent) with any particular tenant at this time. We have several tenants that are reviewing, but we don’t have a definitive agreement in place.

Weingarten may not have an agreement in place, but the publicly traded company certainly has demolition plans in place, already labeled as issued for permitting. Which means either

  • Weingarten is conducting extensive pricing research for a number of options for the space in a rather peculiar manner (the ready-for-permit bid documents do not ask bidders to price any alternative to demolition); or
  • (far more likely) Weingarten is gambling that demolishing the interior of Alabama Theater will help it to attract a very particular type of tenant to the unique Inner Loop property.

How much does Weingarten want to demo?

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Buildings for Sale
03/23/10 11:47am

Real Estate Lessons from Joel Osteen and Lakewood Church: It Is Better To Lease, Then To Buy

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Greenway Plaza, Land for Sale, Leasing, Real Estate Investing, Religious Facilities
18 Comments

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”:

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Commercial Real Estate
03/23/10 8:15am

Weingarten Plans an Alabama Theater Demolition. Is Staples Moving In?

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Historic Preservation, Leasing, Openings and Closings, Retail, Shopping Centers, Strip Centers, Upper Kirby
78 Comments

It looks like the former Alabama Theater — known since the early eighties as the Alabama Bookstop, and since last fall as that big vacant space for lease in Weingarten Realty’s Alabama Shepherd Shopping Center — is about to be gutted. A local construction company is currently taking bids from subcontractors for a rather complete interior demolition. The plans, prepared by Heights Venture Architects, show major alterations to the floor, walls, and ceilings.

The theater’s original sloped floor will be buried under a new concrete slab; wood floors inserted during the 1983 bookstore conversion will be removed. For now, the balcony will remain.

Here’s a little before and after to demonstrate:

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Commercial Real Estate
02/24/10 9:14am

The Coming Migration of the Buffalo Grille?

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Leasing, Parking, Quicklink, Restaurants, Retail, Shopping Centers, Strip Centers, West University
No Comments

THE COMING MIGRATION OF THE BUFFALO GRILLE? Is the Buffalo Grille, left as the lone strip-center survivor at the corner of Bissonnet and Buffalo Speedway after the recent invasion of the new H-E-B Buffalo Market, looking to shuffle off to a new location? An H-E-B representative did tell the West U city council the restaurant would stay where it’s been for the last 26 years — but that was last May. More recently, restaurant co-owner John McAleer says H-E-B managers have “expressed concerns” about there not being enough parking for the grocery store. So he’s looking into a possible new location for the West U breakfast joint — namely, a portion of the former JMH Market less than a mile to the southwest, at the corner of Edloe and Rice Blvd. “McAleer said the restaurant has not received official word from the grocery store about what will happen in April 2011 when its lease expires. There’s still the chance that The Buffalo Grille will stay put, but the family is exploring all its options . . . ‘They’re worried some of our customers are taking their spots, and their customers are going over to Kroger, which is obviously their biggest competitor,’ he said.” [Instant News West U; previously on Swamplot]

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Apartments
02/22/10 4:49pm

Matthew Dilick: Wilshire Village Residents Were Just “Squatters”

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Foreclosures, Lancaster Place, Leasing, Neighborhood Disputes
15 Comments

Did Matthew Dilick, managing partner of the partnership that owns the 7.68-acre site of the former Wilshire Village Apartments, really refer to the long-term tenants of the long-neglected property at the corner of West Alabama and Dunlavy — many of whom had lived in their apartments and paid rent for decades before they were evicted last year — as “squatters”?

In a February 1st affidavit he provided to the 133rd District Court in hopes it might help forestall Wedge Real Estate Finance from foreclosing on the property, Dilick states that “the Plaintiff [Alabama & Dunlavy Ltd., of which Dilick is the general partner] expended considerable time and expense in evicting squatters on the Property.” This just a page or so after declaring his qualifications: “The Plaintiff and/or limited partners of the Plaintiff have owned this Property for over 50 years.”

Gosh, maybe there’s a bit of confusion here? Maybe the “squatters” Dilick is referring to weren’t the actual long-term rent-paying Wilshire Village residents, but some other people he found hiding out in the complex who didn’t have authorization to be there from “the Plaintiff and/or limited partners of the Plaintiff”?

Uh . . . no. By “squatters,” Dilick clearly means Wilshire Village’s long-term residents. The ones he sent eviction notices to; the ones he addressed as “reported occupants” in the release forms he asked them to sign. Otherwise, why should it have taken “considerable time and expense” for Dilick to evict them? How about just . . . “shoo!”?

Neatly left out of the affidavit: The apparent ongoing conflicts Dilick had with Jay Cohen, the sole owner of the property for the bulk of those 50 years. Until they were evicted, the tenants paid their rent to him every month. What’s Cohen’s role?

A person familiar with the situation writes in:

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