LANDMARK FOR SALE 
Dallas Mavericks owner and billionaire Mark Cuban, whose company 2929 Entertainment has owned Landmark Theatres since 2003, is putting the arthouse cinema chain up for sale by auction — along with its sister independent-film distribution company, Magnolia Pictures. Landmark operates 55 cinemas with 245 screens in 21 cities. In Houston, Landmark leases the art deco 1939-vintage River Oaks Theatre at 2009 West Gray — from Weingarten Realty. Offers are expected to come in as early as next week, but Cuban tells Bloomberg News he is only “testing the waters . . . We won’t sell unless the offer is very, very compelling.†[Art Attack] Photo: Flickr user Loren-zo
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Tag: Weingarten Realty
“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
Having achieved the title of “Houston’s last remaining brewpub,” Rice Village’s Two Rows is now scheduled to close at the beginning of next month. General partner Rusty Loeffler tells the Chronicle‘s Ronnie Crocker (and a tipster tells us) that Weingarten Realty was asking far more than the company was willing to spend to sign a new long-term lease for the 10,000-sq.-ft. upstairs space in the Village Arcade on University at Morningside. Now ready to move into half of that space: Jason’s Deli. Loeffler says his restaurant “may look at other locations in Houston” that’ll have room for the company’s brewing equipment.
Got a question about something going on in your neighborhood you’d like Swamplot to answer? Sorry, we can’t help you. But if you ask real nice and include a photo or 2 with your request, maybe the Swamplot Street Sleuths can! Who are they? Other readers, just like you, ready to demonstrate their mad skillz in hunting down stuff like this:
- Houston Heights: Is the Kroger on 20th St. at Yale poised to take over the space next door Walgreens is vacating? Walgreens has a new building across the street under construction. Longtime reader kjb434 sees signs of redevelopment in the Weingarten-owned Heights Plaza Shopping Center the drug store chain is leaving behind: “I don’t have hard evidence, but I hear just as much from some friends in commercial real estate and from workers at the Kroger on 11th st. From what I gather, it’ll be a Signature Kroger and the Marketplace version that is currently at 11th.”
We’ll post any more reader questions we get on Tuesday. Send us what you’ve got before then!
Photo of Kroger, 239 W. 20th St.: Swamplot inbox
Got an answer to this reader question? Or just want to be a sleuth for Swamplot? Here’s your chance! Add your report in a comment, or send a note to our tipline.
- Houston Heights: Just one lead this time, but it should be easy enough for some of you to follow up on: Now that Walgreens is busy getting ready to snuggle up to CVS with its new standalone site going up across the street, what’s going to happen to Weingarten’s Heights Plaza Shopping Center at West 20th and Yale? A reader passes on a rumor heard from an employee at Kroger: that the grocery store is going to take over the entire shopping strip — including the soon-to-be-former Walgreens and at least some of the smaller shops facing Yale. The tip arrives with this request, which we pass off to you: “Can you do some more research on that and confirm?”
Photo of Kroger, 239 W. 20th St.: Swamplot inbox
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?
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]
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:
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?
