KNA Partners bought a 3-acre site at 1625 W. Loop S. in Houston’s Galleria area with plans to raze an existing hotel and build more retail.
A retail development will replace the La Quinta Inn & Suites by Wyndham Houston Galleria Area.
KNA's plans call for demolishing a former La Quinta hotel and adding to the area's shopping options.
John Beeson, one of the owners of KNA Partners, told Bisnow he’s fond of the area and already owns seven properties on Loop 610 between Highway 59 and Hempstead Road. La Quinta Inn & Suites by Wyndham Houston Galleria Area on the site closed on Dec. 19, according to Newcor, which represented the seller.
“I don’t like hotels, the tenants move out every night,” Beeson said of his decision to transform the hotel into retail.
The new development will be similar to his other retail properties on Mid Lane and Westheimer Road, Beeson said, adding that he owns 16 shopping centers around town. Other Beeson Properties developments include West Creek Plaza, a three-story retail development facing Loop 610 that has about 12K SF of space on each floor, and the redevelopment of the Tower Theater on Westheimer.
The decision to buy the 1625 W. Loop S. site was entirely based on location, Beeson said.
“That [area] has a high density of people moving behind it and across the freeway from it, and that’s going to continue for a long time,” he said.
Rob Banzhaf of Newcor represented KB Houston Galleria, the seller of the hotel property, according to a news release. Newmark’s Meredith Cullen and Cullen Realty’s Sam Arnold represented KNA Partners.
The site is between Post Oak Boulevard and San Felipe Street and next to Amegy Tower.
“Throughout the marketing process we had interest from a multitude of buyers including high-rise multi-family developers, corporate HQ office tenants, Entertainment retail tenants, and local Family Offices,” Banzhaf said in the release. “Ultimately we were able to successfully match the property with a long-time Houston developer who will look to immediately redevelop the property into a mixed-use asset to serve the burgeoning Galleria/Uptown market.”
Just over a block south, the 312-room boutique Hotel Derek closed in June after more than two decades of business. The hotel’s website said it looks forward “to witnessing, supporting and passing the baton for the upcoming transformation to a brand new hotel coming soon,” but plans for the building remain unclear.