uptown

Feb. 4, 2005, 12:36AM

Pavilion bowing out
Mall will come down, with plans for new outdoor shopping center, hotel and residential high-rise
By NANCY SARNOFF
Copyright 2005 Houston Chronicle

Ed Wulfe, the Houston developer known for reviving such failing retail centers as Meyerland Plaza and Gulfgate Mall, has purchased the Pavilion on Post Oak with another grand plan in mind.

The mall that once housed a Saks Fifth Avenue department store, along with an adjacent retail center, will be demolished to clear 21 acres of land just north of the Galleria for what could include a new outdoor shopping center, a residential high-rise and a hotel.

"This will change the landscape of the Post Oak/Uptown area," Wulfe said.

Wulfe, president of realty firm Wulfe & Co., purchased the Pavilion from the Radler Limited Partnership. The sales price was not disclosed, but real estate sources figure the property is worth more than $50 per square foot, or more than $28 million.

He and his partner, Bob Sellingsloh, who also bought an adjacent strip center last year that's home to Cafe Annie and Eatzi's, are still working out the details.

The redeveloped property near the corner of San Felipe and Post Oak Boulevard could include up to 400,000 square feet of shops and restaurants developed by Wulfe. The company will likely sell remaining parcels to developers to build several hundred high-rise residential units, a hotel, four-story apartments and brownstones.

As the developer, Wulfe will have architectural control over the project, which is expected to start next year. He hopes the current tenants will relocate to the new development.

Wulfe plans to coordinate the construction schedule so tenants won't suffer while the pro-ject is being built.

Lonnie Schiller, of Schiller Del Grande Restaurant Group, which owns Cafe Annie, said he expects to remain.

"We're pretty excited about the redo of the center," he said.

"It's certainly one of the best corners in the city, if not the best," he added.
Growth in Uptown
Wulfe knows the Pavilion property inside and out.

Several years ago, his real estate brokerage firm was enlisted to sell the long-struggling retail center for its owner.

Wulfe said it never sold because market conditions were much weaker then. Things have changed in the past few years, with a startling growth spurt of new condominiums, luxury apartments and high-end retail shops in Uptown.

"None of that was in place in 2000," Wulfe said.
Not Rodeo Drive
Built in 1972 for a Saks Fifth Avenue department store, the Pavilion never lived up to its potential as the kind of place that could fit in on Rodeo Drive.

In an effort to revamp the property, it was renovated and expanded in 1988 to include more designer retailers.

But the project suffered during the savings and loan debacle. In 1995, lenders foreclosed on the property and Radler purchased it.

The property endured another blow when Saks Fifth Avenue relocated to the Galleria in 1997.
Handful of shops
Now, the 286,000-square-foot Pavilion has but a handful of tenants.

"It never seemed to recover," said John Breeding, president of the Uptown Houston District.

Hermès, the Paris fashion house that sells high-priced ties and scarves, has been a tenant in the Pavilion for almost 20 years.

"As we watched everybody around us move out, we decided to stay put," said Bob Chavez, president and CEO of Hermès.

Because of its loyal following of customers, Hermès wasable to stay in the moribund center because of its prime location.

But the prospect of being part of a larger project has certain appeal.

"We'll only have tremendous upside," Chavez said.

Geaux Tigers

^I love the watercolor renderings. The last time the air in Houston was that clean was 1847.

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Cole

You got that right...

drumguy8800

Great news for Houston. It would be cool if Dallas had a resort-style hotel intown. That is, like full-fledged resort.. not just a "resort hotel", if you know what I mean.

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texman

Congrats Houston. Thats very cool indeed.

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"And we will probably be judged not by the monuments we build but by those we have destroyed."-"Farewell to Penn Station," New York Times Editorial, October 30, 1963

gc

It looks like an awfully big development. I'd like to see it built...

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St-T

I think the W is pretty close. It has a spa an infinity pool on the 11th floor and gardens... along w/ retail and an urban environment. The only thing missing is the casita!

uptown

Last week's purchase of the Pavilion on Post Oak clears the way for Wulfe & Co. to demolish a total of 21 acres in the heart of Houston's prestigious Galleria area to construct a luxury, mixed-use development.

The new project is designed to include an upscale hotel, high-rise residential property, several restaurants and upscale retail stores including a major bookstore. The open-air, pedestrian-friendly project has been in development for more than a year.

Boulevard Partners, a partnership led by Wulfe & Co.'s Ed Wulfe and Bob Sellingsloh, acquired the Pavilion retail center on Post Oak Boulevard between San Felipe and Westheimer last week from Radler Limited Partnership. The sales price was not disclosed.

The 13.24-acre property consist of 286,000 square feet of retail, including Hermes, Americas and Esther Wolf.

Wulfe and Sellingsloh are also general partners in the entity that owns the 8.1-acre Fashion Square retail center, located at the southwest corner of Post Oak and San Felipe. That property, which includes Cafe Annie and Eatzi's Market & Bakery, is adjacent to the Pavilion.

The 8.1 acres actually stretch west of Fashion Square to Skylark Lane, and include wooded land with single-family homes.

Wulfe says the existing buildings on the Pavilion and Fashion Square sites will be demolished, probably beginning in early 2006.

"We have to do it in stages, so everybody can operate while we do it," says Wulfe, who would like to retain all of the existing tenants.

Wulfe, who also redeveloped Meyerland Plaza and Gulfgate Center, wants to lease space to retailers like those in Highland Village. That center includes mid- to upper-end stores, but not ones that have a single exclusive location.

Wulfe plans to talk to a number of hotel operators for the site, confirming that he has already met with Ritz-Carlton.

He seems confident about finding a developer to execute the residential piece of the deal -- whether it encompasses condominiums or apartments.

"The high-rise residential will happen easily," he says. "We've just got to get the right one, designed the right way."

The Pavilion was originally built in 1972 with a Saks Fifth Avenue anchor store, and was expanded in 1988 to include other high-end retailers. The Radler group acquired the center after lenders foreclosed on the property in 1995.

While the retail center has been maintained cosmetically, it has struggled with vacancy issues.

"It didn't have the critical mass of enough traffic generators," explains Wulfe. "Market conditions are different now. Luxury goods this past Christmas were the hot items."

hamiltonpl

That's beautiful. I think I've seen that proposal before.

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tamtagon

Ritz would be perfect in that part of town!

2112

Actually, the orange sky is normal around the east end: The glow from all the factories and refineries spewing forth profit byproducts illicits a sureal orange glow. My kids dont understand that an orange sky is not normal...

texman

Thats just sad.

__________________
"And we will probably be judged not by the monuments we build but by those we have destroyed."-"Farewell to Penn Station," New York Times Editorial, October 30, 1963

2112

I don't know, I kinda' like it. It's really surreal, especially when looking at it from the top of the 610 bridge over the port: it's what seems like an endless sea of heavy industrial gothe. But really, the only time it's orange is when their is precipitation or low clouds. But of course that is about half the time.

I45Tex

My boss grew up in Houston and described lying on the lawn throughout his childhood looking up at the stars in the red sky... he now has chronic respiratory problems. It's the one reason I just can't say I'm going to raise a family in Houston.

tamtagon

Alice made mentioned in one episode to some of the Brady's the LA polution. The pollution in Houston can be fixed, too. The gulf is nice, so Houson, the sky's up.

2112

It's orange, not red. ORANGE.

Get it right.

Tnekster

What exactly is considered Uptown in Houston? All I know is downtown and Galleria.