Some people wondered if West Oaks Mall was long for this world, recalled Gary Karl of Pacific Retail Capital Partners, the mall's co-owner and operating partner.
After all, the mall had been through several owners in a relatively short period of time. Anchor J.C. Penney closed eight years ago, and the space was still empty. And the site that once housed former anchor Mervyn's had been vacant for three years.
But the owners are pumping life into the 27-year-old mall, at Westheimer and Highway 6.
Pacific Retail has started a $40 million renovation that will include a new 14-screen Edwards Theatre and several new restaurants surrounding it. The cinema is slated to open next fall. Palais Royal arrived last month.
The 1.1-million-square-foot mall is 82 percent leased, said Karl, Pacific Retail's senior vice president, asset management. Mall anchors are Macy's, Dillard's and Sears. Other tenants include Express, Bath & Body Works, New York & Co. and Victoria's Secret.
Pacific Retail is also "very interested in exploring the opportunity to bring art to the center in the former J.C. Penney space," Karl said. "Houston is an arts-centric city, and we are looking for ways to bring the Houston arts scene experience to the western suburbs. We are starting to get some traction with some of the arts groups to sponsor exhibits and workshops."
The Alamo Draft House cinema, currently in the mall, will leave when the Edwards arrives on the west end of the mall at the site of the former Mervyn's, Karl said.
The Edwards cinema and new restaurants are "the cornerstone of what we want to do," he said. Movie houses and restaurants are part of a mall trend to combine entertainment with retail, Karl noted.
As for future West Oaks tenants, Karl said: "We feel the center can do more to support families in the area by creating a family entertainment shopping experience," and he also hopes to bring in more "casual fun fashion."
Search for stability
Regal Entertainment, owner of the Edwards Theatres, decided to come to West Oaks Mall after concluding that the surrounding area is underserved, said Lance Gilliam, managing partner of UCR moodyrambin PAGE, a retail real estate brokerage firm that represents Regal in Texas. "The trade area has gone through a remarkable amount of changes in the last 10 years," said Gilliam, who noted there are 300,000 people within a 10-minute drive of West Oaks Mall.
Gilliam's firm also is leasing the mall for Pacific Retail.
"They're taking an innovative and creative approach, and that's what's needed to invigorate the project," said Ed Wulfe, chairman and CEO of Wulfe & Co., a retail development and brokerage firm. The 14-screen cinema and new restaurants will "create great energy, including on weekends," Wulfe said.
"West Oaks Mall has struggled due to ownership turnover, and hopefully the new owners will add stability," said Scott Shillings, president of Riverway Retail, a Houston retail tenant representative.
"West Oaks has been a survivor in this quadrant, in that other malls such as Sharpstown and Westwood lost their department stores," Shillings said.
About seven years ago the mall was remodeled with a ranch-style look that included wood and limestone accents, chandeliers, a fireplace and a new ceiling and flooring.
Good location
Karl noted that West Oaks Mall is in the center of a triangle with its points at Memorial City Mall, Katy Mills and First Colony Mall, and is more than 10 miles away from each.
Pacific Retail acquired West Oaks Mall in 2009 for $15 million. New York City-based Square Mile Capital Management is Pacific Retail's equity partner funding the recapitalization of the project.
The principals of Pacific Retail, formerly with Somera Capital, previously acquired the mall in 2003, Karl said. After making the upgrades to the mall, Somera sold the mall to Investment Properties of America for $102 million.
When West Oaks Mall opened in 1984 it had Foley's, Saks Fifth Avenue, Lord & Taylor, Palais Royal and more than 100 other retailers. Saks and Lord & Taylor left in 1990, with J.C. Penney and Sears taking their places.
Palais Royal has returned to West Oaks after closing there in 2000.
"Palais Royal is excited to be back in West Oaks Mall," said Andy Hall, president and CEO of parent company Stage Stores.
"With the rapid growth of west Houston, new mall ownership in place and revitalization efforts currently under way in the community, we felt it was a perfect time," Hall said.
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