Simon Investing $250M to Keep Galleria Ahead of the Curve

HOUSTON—Retail specialist Simon Property Group has completed a $30 million renovation of Houston Galleria's luxury wing to complement the previously-announced construction of a new, state-of-the-art flagship Saks Fifth Avenue store.

The Indianapolis company says these two developments are part of a $250 million investment designed to “further elevate the shopping experience and ensure that The Galleria remains the destination of choice for shoppers and retailers alike.”

The improvements to the luxury wing will include the addition of 110,000 square feet of new retail space and the creation of a 14,000 square foot, architecturally appealing, free standing retail building.

As The Galleria's sole free standing retail structure, the unique location will be connected to the property via a covered walkway. The design company handling this project is JPRA Architecture and the contractor/architect of record is Beck.

Four new luxury tenants join a list of more than 80 retailers that can only be found at The Galleria. In 2015 The Webster, La Perla and Tod's will open, with Celine opening a store in 2016.

• The Webster - The Webster has quickly established itself at the forefront of luxury fashion through the vision and direction of Laure Heriard Dubreuil, a veteran of Balenciaga and Yves Saint Laurent. The new Galleria store will mark the brand's first location outside of Florida and will open in November in the free standing building fronting Westheimer Road.

• La Perla - An Italian women's clothing company specializing in the finest lingerie. The Galleria store will be La Perla's first store in Texas and will be located on street level near Neiman Marcus upon opening this spring.

• Tod's - Known for handmade shoes and luxury leather goods, Tod's will be located on street level near Neiman Marcus and will open this summer.

• Celine - French ready-to-wear and leather goods luxury brand slated to open their first boutique in Texas at The Galleria in 2016.

"This project will provide the unprecedented luxury shopping experience that the Houston market craves, with high-profile brands, unique restaurant choices and premiere amenities," said David Simon, CEO of Inianapolis-based Simon. "The new flagship Saks Fifth Avenue will be the cornerstone of this high-end retail opportunity and will continue to anchor The Galleria in an even more impactful way."
In spring of 2016, Saks will relocate to a new, state-of-the-art 200,000 square foot flagship store adjacent to their current location. Once the new Saks store is open, Simon will convert the existing Saks store into a new and vibrant multi-level mall extension anchored by Saks Fifth Avenue on one end and Neiman Marcus at the other and featuring approximately 110,000 square feet of space to house 35 new and unique retailers and restaurants.  
These world renowned retailers join an impressive list of new luxury tenants, already announced and operating, including John Varvatos, Tourbillion, Rolex, Trina Turk and Hublot, with Top Shop and Top Man opening in March. Several stores have recently renewed and remodeled their stores to take advantage of the unequaled shopping environment that The Galleria provides. These include Chanel, Gucci, Bulgari, Versace, CH Carolina Herrera, David Yurman, Ralph Lauren, Apple and Tory Burch. International restaurant concepts to be announced in the coming months underscore the high demand for space at The Galleria.

"The Galleria attracts premiere brands that desire to be part of our enviable list of tenants and take advantage of strong market positioning and sales performance. The strength of our established retail mix is enhanced by the presence of top anchors such as Saks Fifth Avenue, Neiman Marcus and Nordstrom," said Simon. "The demand for retail space at The Galleria only further reinforces our position as the market's luxury leader."
The Galleria is visited by more than 30 million shoppers, and it is Texas' largest shopping center and fourth largest domain nationally. Spanning 2.4 million square feet of space, housing 400 fine stores and restaurants, two high-rise hotels, and three office towers, The Galleria is Houston's most popular retail and tourist destination.