Garage Becomes an Eatery in Retail Transformation
A national restaurant chain is now operating a 7,538-square-foot space that includes a full bar, restaurant seating for 250, and a patio with dining and firepits to accommodate an additional 50 guests.
HOUSTON—As the US population increasingly moves to metropolitan areas, the food and beverage industry is expanding most in the suburbs, according to a report by CBRE. Millennials dine out more than other generations, but they’re thrifty diners. Conversely, Baby Boomers collectively spend the most on food and beverage and Gen Xers spend the most on a per-household basis.
LaCenterra retail center in suburban Houston didn’t have the space available that restaurant Bar Louie required. But in the end, the construction management and advisory services provided to Poag Shopping Centers resulted in the transformation of a portion of a parking garage into a high-profile restaurant.
Throughout the entire development process from lease negotiations to the opening of the restaurant, PCS advised the lifestyle center’s owners and the tenant on the various challenges for transforming a portion of the parking facility into a Bar Louie restaurant. With PCS’ support, the local operator of the national restaurant chain is now operating a 7,538-square-foot space that includes a full bar, restaurant seating for 250, and a patio with dining and firepits to accommodate an additional 50 guests.
“This was a unique opportunity that allowed the property owner to capture additional revenue, visibility and improve the tenant mix by carving out new rentable space within a parking garage and transforming it into a high-profile restaurant and bar,” says Rick Goldman, president of PCS. “Bar Louie adds to both the overall appeal and long-term value of LaCenterra.”
According to Goldman, the unique assignment faced a variety of challenges, from property operating matters to restaurant specific issues:
Handicapped parking stalls—as originally designed, a certain number of handicap parking stalls were planned and/or required to fulfill lease obligations with other LaCenterra tenants. PCS reviewed all lease documentation, analyzed potential solutions, sought and secured the written approvals of all affected tenants before reconfiguring the remaining parking area to maintain traffic flow efficiency and satisfy all contractual obligations.
Grease interceptor—because the space was originally developed as a parking garage there were no accommodations made for connecting to or installing an additional grease interceptor, an essential component for any restaurant or related facility. Working with various other consultants, PCS developed the most efficient and cost-effective solution that would not impact other tenants or the overall retail experience.
Grease duct/fresh air intake—again, especially as a restaurant space, ventilation was critical and raised the question of where to install what was needed to operate the restaurant. While these were mechanical engineering and code issues and questions, PCS led the tenant, engineers and others to ensure the lease was not violated and a ventilation system appropriate for the use and did not interfere with other tenants or physical improvements of the center was provided.
“Our role at LaCenterra is to serve as an extension of Poag Shopping Center LLC’s development group,” Goldman adds. “As part of that, we help resolve issues that are impediments to securing signed leases and offer logical solutions that lead to the creative and productive use and monetization of vacant or unused space.”
LaCenterra at Cinco Ranch is a master-planned community with upscale shopping, dining and entertainment in a Main Street-style setting. It is comprised of 412,900 square feet of retail and class-A office space with 271 luxury apartments at The Grand at LaCenterra.
PCS is a Chicago-based construction management firm that assists firms in finding creative ways of capturing additional revenue/visibility and improving the tenant mix.
“Creative solutions to add tenants through previously non-income producing space accomplishes many things, most importantly, enhancing the appeal of a center by bringing in restaurant, entertainment or other tenants that visitors will patronize and creating new revenue opportunities, some of which can be very substantial, that ultimately will add considerable value to a property,” Goldman tells GlobeSt.com. “The process isn’t as easy as it sounds and requires ownership to take a detailed and systematic view of the opportunities and implications that may be involved.”