Economy has impacted timing, says developer
By HELEN ERIKSEN CHRONICLE CORRESPONDENT
The LaCenterra retail center development in the heart of Cinco Ranch, is preparing to expand despite the sluggish economy, developers say.
The 34-acre mixed-use project, which opened its first phase in spring 2007, is being built in three phases over several years, developer Woody Mann Jr. of Vista Equities Group said. Facilities include upscale retail, office and medical leasing space. The planned expansion will include about 250 one-and two bedroom residential units.
“We’ll definitely proceed with the second phase of the development, but the timing has certainly been impacted by the state of the economy, as has the status of most development in the planning stage,” Mann said.
“Depending on the continued success of our pre-leasing efforts, and assuming no further major deterioration of either the economy or the capital markets, we’re projecting a spring 2010 opening for Phase II,” Mann said.
Terri Norman, director of marketing and public relations at LaCenterra, said Phase II construction is likely to begin in the first quarter of 2009.
The entire project will include 357,000-square-feet of retail space in three phases of development, Norman said. Phase I has 170,000 square feet. The second phase will have 160,000 square feet and Phase III will have 27,000 square feet, she said.
Building from the ground up, developers Houston-based Vista and the Denver-headquartered Amstar Group transformed a vacant tract to a commercial project. The lifestyle center’s design incorporates a theme reminiscent of “Main Street” in a small Texas town with a courthouse building and a central square.
Since LaCenterra opened at 23501 Cinco Ranch Blvd. and the Grand Parkway, it has not only grown into a popular gathering place for the area’s residents but also has created new jobs in uncertain economic times.
“We estimate approximately 700 jobs have been created to date with an estimated 1,400 direct and 800 indirect jobs created upon completion,” Norman said.
Norman said the center continues to expand its tenant mix and the list of clients doing business in LaCenterra is growing. She said 80 percent of the center’s retail space in Phase I is leased and contracts are under negotiation for all phases.
About 60 percent of 90,000-square-feet of Class A office space has been leased and more space is available to be leased, she said.
The lifestyle center houses offices such as the Katy Area Chamber of Commerce and Kerry R Gilbert & Associates. Recently, Adams Law Firm of Katy inked a deal for 6,462 square feet of office space for a January move-in date.
“The environment is the perfect blend of ambiance and amenities for our staff and clients,” said the firm’s managing partner Thomas A. (Tad) Adams IV in a recent press release.
The center has 36 retail operations, and Perry’s Steakhouse is prepping for a January debut.
The retail lineup includes a mixture of restaurants, clothing stores and specialty stores such as Baker Street Pub and Grill, Kenzo Sushi, Talbots, Gymboree, Panera Bread, The Wine Next Door, Cold Stone Creameries, Johnny Rockets, and Ann Taylor Loft.
Douglas Kelly, chief operations officer at Zero Emission Energy Plants, told members of the Katy Area Economic Development Council at a meeting last month that one reason the company chose LaCenterra for its headquarters was because it wanted a first-class place near restaurants to entertain clients.
“We did not want to be two guys operating out of a garage,” Kelly said.
ZEEP promotes energy production that is environmentally friendly and cost-effective such as clean coal,he said.
“We’re pleased with our leasing efforts in Phase I to date ¾ especially in the office sector of the project,” Mann said. “We anticipate being fully leased in both retail and office uses by the summer of 2009.”
Norman said management is receptive to customer input regarding its retail mix.
“Most residents we hear from want additional dining options and more of the same ¾ great retail options close to home,” Norman said.
helen.eriksen@chron.com
