DevelopmentX

Does anyone know if Uchiko pull out of this project? Drove by this afternoon and see the For Lease signs Affixed to the rounded showcase restaurant apace along Post Oak. Hope this hasn’t fallen through- maybe just a poorly placed leasing sign for the office space. ?????

Apologize in advance for misspelling as I was typing quickly in between conference calls lol.

Additionally: I am interested to see the new Zadok Jewelers flagship boutique (2 stories, 20,000 sq. ft.) off Post Oak. They hired Michael Hsu to design a beautiful small luxury mixed used development and their boutique will be designed to feature watch and jewelry boutiques for individual luxury brands- similar to what you might see in Zurich or the Middle East. This will put pressure on the fine jewelry departments at Neiman Marcus (which is seriously struggling financially), Saks, Deutsch, Lewis and others. 

One final point: I believe the addition of luxury and/or boutique hotels near mixed used developments is important. ROD has forthcoming Equinox Hotel as well as at least one additional hotel nearby. Highland Village might be working on a new RH flagship with a hotel component similar to what they've done in NY and Dallas. The twin Westin Hotels were a big part of the appeal for international visitors over the years. People and to stay at certain hotels over and over and explore that neighborhood. I wish ROD had gotten the Ritz Carlton deal done prior to opening because it would have added another 250 people a day of a certain demographic to its restaurant and retail landscape.

Am I the only frustrated by some of the land deals that adversely affect some of these impressive new developments?

1) Asia Society- Yosio Taniguchi had to change the entire orientation of his first ground-up structure in the US due to the fact that the house adjacent wouldn't sell and then they went ahead and sold after the museum was completed.

2) Rice Village- This old house owned by Allied Home Health wouldn't initially sell in Rice Village which is why Randall Davis couldn't initially build-out the corner in his failed development that eventually became Hanover's..

3) Beck's Prime- first of all - greta burger but dumpy outdated restaurant building. They have help up the site lines for this beautiful development by not selling the land. Honestly, these real estate problems leaves so many of these developments looking hodge podge.

Does anyone have the name of any high-end retailers and/or restaurants slated to open in this development other than the aforementioned Pinstripes bowling/restaurant concept on the 2nd floor? The spaces have great street visibility however I have heard from several high-end furniture showrooms that contacted the leasing people that they don't return phone calls which is very odd.??????

Two months ago, I met two chefs from India while eating with my son at Shake Shack and they told me they were in town to take in the local dining scene in preparation for opening a fine dining Indian restaurant called The Spice Market (no relation to the Jean Georges Vongerichten restaurant in Meat Packing District tin NYC) that was opening near Nobu and Fig & Olive. I was surprised that Galleria marketing has not announced. If the deal wasn't signed- why would they fly the chefs over to tour Houston food scene??? They had been to the new Kiran etc... They said the company has other restaurants in India but I believe the ownership was from Nigeria.

I spoke with someone very close to the project and they gave me the following details on the sale of 6 acres to Apache:

All areas to the left of Blvd. Place Ln. (which runs through the center of the property) with the exception of Building #6 (which is where RDG, Philippe & Hermes are now located) have been sold to Apache.

This means that Buildings #4, #5 and the South Garage as illustrated in the renderings on the Blvd. Place website are no longer a part of Ed Wulfe's project.

What this means? Hermes which had signed a lease for a 2 story flagship location in the Northeast Corner of Building #4 facing Post Oak Blvd. has lost their long planned space. There is no word on what this means for the French luxury boutique which has flourished during the recession.

Additionally, other retailers "penciled in" for Building #5 were rumored to have been a new 20,000-25,000 sq. ft. Bloomingdale's location.

It makes one wonder how cohesive the development will be with Building #6 off on its own next to the Apache office tower.

As for the rest of the development, Hanover is breaking ground on a nice high-rise rental building and of course, the Whole Foods location will break ground late summer/early fall 2012 which a planned opening of February 2014.

The sale of the southern side of the development to Apache allows Wulfe to break ground on buildings #1,#1N, #1W, #2 & #3. Unfortunately, the only leases of note in the new buildings are:

Pinkberry

Ocean Prime seafood

an Aveda salon

These developments really leave me wishing that Houston could shed it's 1985 "Boom to Bust" reputation and attract the type of deep-pocketed investors who have the national and international reputation to secure a mix of "high end" and destination retail.

One has to wonder why the local leasing team has been unable to secure any high-profile leases after marketing the project for almost 6 years.

It's a shame as a prime parcel of land like this only comes into play once in a generation.

I'm pleased about the Whole Foods location, however at 48,500 sq. feet it now has the footprint of many of the suburban locations that the chain is building.

Where of where is Gerald Hines and his vision and international reputation when we need him?

Oh, that's right. He's developing a large commercial warehouse project near IAH. Things have changed so much.

Development X

I'm sorry, but I believe I have to reassess your ability to judge people since if you do not like people's opinions their intelligence becomes suspect.

I have a great amount of respect for people with differing political opinions on here, and respect what they have to say on a variety of subjects. I may not agree with them, but rarely would I question their intelligence solely based on political affiliation. Now, I may question it on other factors (hell, I even question my own) in their arguments/discussions, but not political persuasions.....except maybe for the flat earth society, the 911 conspiracy theorists, and certain varieties of the Tinfoil hat club.

Let's take it to another topic thread and keep this one on topic.

Mods?

Ricco-

On one point, I will agree with you. Let's keep the political posturing off the HAIF site.

In response to your comment that you would rarely question one's intelligence based upon a political opinion, let's look at the facts.

The Niche said:

Vote for John McCain. You don't have to like him, respect him, or really have any expectation that he's going to be a good president (I certainly don't). The important thing is that he isn't a classist scumbag. He is not Barack Obama. And that is sufficient.

Anyone who would admittedly cast a vote for President of the United States for someone that they "don't like, don't respect and doesn't have any expectation that he's going to be a good president" is not exercising his/her intelligence.

Anyone who defends The Niche's own words as representative of intelligent thinking is simply wrong.

Finally, I ask any posters readying to attack me as partisan to please stop- take a breath.

Don't accuse someone who considers the right to vote a privilege.

A privilege that should not be taken likely.

Don't accuse me as someone who wants to judge someone for having a different opinion.

I love the fact that people have different, informed opinions.

I welcome an intelligent discourse on a wide range of issues (including politics), however I do ask that it take place in the appropriate forum (in this case a political forum).

At the very least, I ask The Niche to come up with a more compelling, intelligent reason for soliciting a vote for McCain.

If other posters would like to discuss the current presidential election and how it might affect foreign investment in planned Houston real estate projects, I think this might be worthy of a separate thread. As someone who travels the world extensively for business, I can report back that financiers in major capitals around the world (Dubai, London, Moscow, Singapore, Hong Kong) are anxiously awaiting results from the coming election prior to committing funding for pending development opportunities. Given the worsening financing outlook in the US, I can assure you that these major international development companies are indeed seeking major CHANGE.

As I said earlier, my post was motivated by my personal disappointment in seeing this political comment cluttering up our site devoted to architecture. I had much higher expectations based upon The Niche's previous postings.

Moving forward, let's get back to discussing architecture and development in Houston- a passion of this poster.

I'd be satisfied if they just told us to get back on topic and then sent us all PMs telling us how immature we are, like usual. Or move it to the Personality Test thread that I'd set up a ways back.

I have always enjoyed reading The Niche's posts as they usually contain fairly accurate information and informed analysis related to Houston's real estate development community. Therefore, I was quite surprised to see the addition of his Vote for McCain/Palin banner and additional text added to the footer of his recent posts.

Sir, you are entitled to your own political views (although I believe they have no legitimate reason for being posted on the HAIF website unless one is discussing a candidate's specific plans for Houston Architecture and Development- which I don't think we've heard from any political candidate other than Councilman Peter Brown ), however, if your compelling reasons for supporting your candidate are limited to the following pathetic endorsement:

"You don't have to like him, respect him, or really have any expectation that he's going to be a good president (I certainly don't)."

then it brings your overall intelligence or judgment on other matters into question. Not liking the personality or impressive academic record of one candidate is surely no reason to encourage others to vote for a candidate who you "don't like, don't respect and don't believe he's going to be a good president".

Personally, I am very disappointed to have read these comments on HAIF. If you want to vote for McCain- please do it. Even talk about it on your own webpage or on a political blog. Just keep your illogical, unimpressive political analysis off our Architecture Forum.

Sunday's Houston Chronicle has a story focused on the success of Discovery Green. They mention that the development of the 22 -story Embassy Suites is on hold as the developers look for new financing due to the credit crunch.

Development X

Does anyone have access to renderings of the Whole Foods/Finger Cos. development announced by Nancy Sarnoff this afternoon?

www.chron.com/disp/story.mpl/headline/biz/5776413.html

I'm very interested to know if it is mixed use in its site planning or only in its tenant mix?

More on the rumors of Whole Foods abandoning Ed Wulfe's BLVD Place. Evidently, retailers across the street are telling people that Whole Foods has pulled out of the deal. If true, then this is a major blow for Ed Wulfe. Without Whole Foods, he has no new retail anchors on which to pull in all the high-end retailers needed to lease out the square footage.

If all of these rumors are true, then this might explain why the Ritz Carlton deal has still not been publically announced- 4-5 months after Wulfe suggested it would be disclosed.

The schematics of Whole Foods are no longer on Wulfe's website.

Hoping that someone can verify these rumors. For my part, I hope this is not true. I was the most vocal supporter of 2727 Kirby when naysayers insisted that the "plug had been pulled on the project" and look at it now.

I'd like everyone to check in with their contacts and clarify this issue ASAP.

Thanks

This development is going to be totally massive if the Ritz specs are correct... which is exciting... but I'm with the other posters on the traffic issue though. I just don't see how this area can accommodate all the increased traffic that is on the way, it already is a total cluster ****.

And add a rail line chopping up intersections... Sheesh.

DEVELOPMENT X heard a rumor earlier today that Whole Foods is exiting the BLVD. Place project. I, for one, hope this isn't true. As a strong advocate for this project, I think Ed Wulfe needs to announce the Ritz Carlton project ASAP as well as a new timetable for the Hanover apartment tower. Ed- please tell us that Whole Foods is not leaving- in fact, I keep hoping to hear that they will increase the size of the flagship from 78,000 sq. ft. to 89,000 sq. ft.

Also, aggressively sign a mix of exclusive, destination, high-traffic retailers like: H&M, Tootsies, Ralph Lauren Flagship (I've heard they are looking at sites in Highland Village)- maybe you should offer them a high-profile, architecturally interesting space to drive traffic; Barneys New York Flagship (I've heard they are scouting locations as well); maybe an upscale cinema similar to the Arc Light or the Bridge Cinema de Luxe from Los Angeles- with bar/lounges included in the theatres.

Think Big but start making announcements before the rumors drive potential deals to other multi-use projects coming on line in 2009-2010.

Tootsie's is about to announce that they are vacating Highland Village and opening a new, amazing expanded 2 level store in BLVD. Place.

Unless the billboards are located INSIDE their areas, I think that's a really bad idea. A lot of people who are for zoning and for the overall beautification of the city are VERY anti-billboard. I know if I lived in an area with unwanted billboard clutter, I'd be angry with the rich folks who spent money to advertise their plight in my neighborhood. It also seems to be hypocritical to use billboard advertising when some of their first public arguments have centered around shadow casting, structural height, and protection of "beautiful" areas.

I agree with KinkaidAlum- I think the homeowners should think long and hard before launching a billboard campaign against the developer. I personally have fought against billboards for years and coupled with the ruling this week about Houston's sign ordinance- I think they run the risk of clouding their intent and drawing others into the squabble. That being said, I storngly oppose the location of this new tower.

San Antonio is still tops in Texas when it comes to tourism.

Dallas' tourism numbers are traditionally commiserate with Houston with the exception possibly being when they include Arlington (Six Flags Over Texas) in the Dallas-Fort Worth Metro data. That being said, the Houston metro area includes Galveston which has been experiencing record growth.

Houston and Dallas are corporate travel destinations tied to the fortunes of the energy and finance industries, respectively.

Although both make claims of being first tier convention cities, the facts show that Chicago, Orlando and Las Vegas are far ahead. I do believe that Houston will have the edge over Dallas in the next 10 years as Discovery Green and Houston Pavilions have a Chicago-esque feel about themselves. From a tourism perspective, the Houston metro area numbers will greatly benefit from the booming local cruise industry.

High Rise potential:

Houston's international population is significantly larger than Dallas' international population. International buyers often prefer the security afforded by highrise living- especially when it comes to second homes.

Turnburry, the proposed Ritz Carlton Residences, and 2727 Kirby will all have greater impact in the national real estate community than either The Cosmopolitan or The Titan. Randall Davis' most impactful development will prove to be Sonoma. (for a number of reasons to be discussed later.)

The facts speak for themselves. Houston deserves the attention of the major residential development companies working on innovative projects in other markets. (Atlantic Station in Atlanta, City Centre in Las Vegas, Victory Park in Dallas).

My gut tells me that Houston is still plagued by the negative history of the energy "bust" of the early 80's.

Hines is the only local firm that has the potential to simultaneuously change the course of local development while garnering the attention of other more interesting property developers.

If they throw their hat into the game, then all bets are off. (Financing the Manhattan and the Empire don't count.)

Let's just hope they don't need to go into partnership with a Quiznos or a Whataburger franchisee in order to make the numbers work.

Luxury Residential Tower with a McDonald's at the front of the property!!!!!!!

I was perusing the latest issue of Travel & Leisure last night and saw an ad for the Museum Tower in Dallas. This development, combined with the recently completed Robert Stern-designed Ritz Carlton condo development (2 towers), the recent W condos and under-development Mandarin Oriental Residences (both at Victory Park) all in Dallas have me wondering:

are Houston developers not able to secure the level of financing required to bring world class residential towers to market?

Hillwood is spending $3 billion on Victory Park in Dallas yet Ed Wulfe has still not been able to secure a commitment (at least a signed commitment) from Ritz Carlton to develop the tower at BLVD. Place. The total value of BLVD. Place is listed as $500 million- six times less than the Victory Park development.

I am not a fan of Dallas (too white, too small townish, too insecure- thus, the rehearsed snobbery), however when I look at what is happening in Chicago, Atlanta, Las Vegas, Miami (and yes, I know they have overbuilt) I am left with the feeling that Houston is getting second-tier projects where local developers (with the exception of Hines) lack the foresight or capital to execute first class projects that appeal to the type of out of town investors that insure solid financial returns.

Will every project be predicated on bringing in fast food operators as partners (in exchange for land)?

Bring on projects from the Related Co., Yoo by Starck etc...

At one point or another over the last year, I have been told that each of the tenants listed were looking at BLVD Place.

If you believe that I'm "throwing things against the wall to see if they stick" then you will be proved wrong.

My post was intended for individuals close to the deal.

If you have no connection to this project, then don't feel obligated to reply.

P.S. My intention was to draw an emotional reaction from "informed sources" although I find the responses from the "outsiders" humorous as well!

Development X

BLVD PLACE

Ritz Carlton Hotel (lower floors)

Ritz Carlton Residences (higher floors)

Hanover luxury apartment tower

Whole Foods Flagship

Retail:

Barneys Flagship

H&M

Prada

Escada

Niketown

Virgin Megastore

Intermix

Scoop

Restaurants:

Spago

Emeril's

Existing Anchors:

Cafe Annie

Americas

Hermes

I'm throwing this information out in the hopes that elicits some sort of a response form someone inside or at least near this deal.

Tell me I'm wrong.

Tell me I'm close.

Tell me I right.

Just tell me something.

Development X

WEST AVE

Can anyone comment on rumors that some of the following retailers are either looking at or already committed to West Ave?

Tootsies (rumor has them leaving Highland Village in '09 as this center opens)

Barneys New York (a full-line store vs. the co-op store that opened last year at the Galleria)

H&M

Design Within Reach

Ralph Lauren

2:30 pm

Just drove by the 2727 site again and they were finishing pouring the foundation for the lower level of the underground parking garage.

I wonder if some of us might have been "trigger happy" in ringing the death knell.

I certainly hope so.

I spent 18 months working in Vancouver from '05-'06 and kept a corporate condo in Yaletown downtown. I can attest to the quality of the projects designed by the same architect responsible for 2727 Kirby renderings.

Does anyone have any updated information on the Kirby & Westheimer project? Well placed sources tell me that Tootsies will be an anchor (leaving behind their prime Highland Village location). I've heard their former digs might be either sub-divided or home to a Ralph Lauren flagship (similar to stores in New York , Beverly Hills and Dallas).

All for now.

I've been a loyal reader of your website for the last twelve months, however I am only now taking the "plunge" into joining the dialogue. I have much to add, however as it is getting late I thought I would initiate my username "Development X" by passing along the following updates to the group:

1) I just drove by the 2727 Kirby construction site tonight at 10:15pm and can report that the entire worksite was lit up with HMI's like a film set- with workmen and tractors in use. It appears that they have turned quite a bit of dirt since yesterday. I'm hoping that the developers are reacting to Houston Development's cryptic yet ominous update and want to reassure those buyers who have put down deposits that things are still a "go". Worst scenario would be that the developers hoped to extinguish the negative chatter by "dressing up the set" the evening that the "legendary" Armando's restaurant returned to River Oaks in the former site of River Oaks Grill. All of the movers and shakers were attending so this would be a prime night to catch the attention of people such as myself.

2) Uber-popular West U trattoria Antica Osteria is not moving ahead with plans to open a second location in the Houston Pavilions development. Although the developers continue to use their name in press releases, the owners made the decision at least six weeks ago.

Don't panic- the reason is evidently that the owners evidently don't want to spread themselves too thin.

Verdict- I believe it- remember- the owners are not open for lunch and they serve dinner only 6 nights a week- a reason why all their employees love working there so much!

That's all for tonight!