http://www.chron.com/disp/story.mpl/headline/biz/3721563.html March 14, 2006, 2:29AM REAL ESTATE Magic in the deal Basketball great, partners buy Marq*E Entertainment Center By NANCY SARNOFF Copyright 2006 Houston Chronicle MAGIC Johnson is dunking some of his riches into a prominent Houston shopping center. Los Angeles-based Canyon-Johnson Urban Funds, a partnership between the former basketball star's Johnson Development Corp. and Canyon Capital Realty Advisors, has bought the Marq*E Entertainment Center on the Katy Freeway just west of the 610 Loop. Joining Canyon-Johnson in the deal is Houston-based commercial real estate firm Fidelis Realty Partners. Johnson and Bobby Turner, managing partner of the investment group, are expected to announce the deal — its first in Houston — at news conference today at the shopping center at 7620 Katy Freeway. "We believe it's a tremendous asset with tremendous upside," Turner said. In an unrelated venture, Johnson is affiliated with a movie theater at Northline Mall. Canyon-Johnson wouldn't reveal the purchase price, but a source familiar with the project who didn't want to be identified because of the confidential nature of the deal, said the acquisition and property improvements will amount to more than $50 million. Few changes expected Although the shopping center is in new hands, visitors shouldn't expect many changes to the center, whose main tenants are a 22-screen Edwards cinema and Imax, Cafe Adobe Mexican restaurant, nightclub Drink Houston and a Jillian's, which will soon convert to a Dave & Buster's, a restaurant, bar and game room for adults. LA Fitness will also open in the center this year, occupying space that once housed an indoor skateboard park. The new owners don't plan to alter the look of the brightly colored center, nor will they change the name. They do, however, plan to develop space for a police storefront there, after a fatal shooting in the parking lot and a separate nightclub stabbing incident last month. Canyon-Johnson also hopes to fill the empty space in the 360,000-square-foot retail center, which has 35,000 square feet of vacant space. A popular cinema Like other businesses around it, the mall was affected by the Katy Freeway expansion, said Ed Wulfe, president of Wulfe & Co., a real estate firm specializing in the retail industry. Wulfe said the theater there is one of the most popular cinemas in the city, especially on weekends. However, the property lacks another major tenant to attract more customers during the week. "You can't operate on just a theater for your major traffic generator," he said. A new operator could help fill the vacancies. Fidelis will run the property, as well as maintain an ownership position. The Marq*E, which was owned by Orix PLC Houston Venture, was built in 1999, according to property research firm O'Connor & Associates. In addition to filling the vacancies, the new owners will attempt to reposition the mall in other ways. The 35-acre property has 20,000 square feet of adjacent parcels that have yet to be developed. New revenue The group also hopes to generate revenue by offering billboard or signage rights that are not being used. With nearly $1 billion in committed equity capital, Canyon-Johnson funds were formed to develop and reposition properties in diverse, densely populated urban areas. Turner said the Houston mall met the firm's investment requirements. "The consumer at the Marq*E mall is reflective of the target market we're looking for," Turner said. "It may be located a block from the Galleria, but it's not attracting the same consumer." Strong city support The company has entered the Houston market with a strong support network of government officials. Mayor Bill White approached Johnson and Turner about investing in Houston about a year ago when the company had just closed its second investment fund. White said the property has lacked tenants that would attract more families. "From a personal observation, they've had an entertainment presence, but you haven't quite seen the buildout of family-oriented shopping that you have at other major malls," he said. nancy.sarnoff@chron.com
btw, speaking of Magic, is his theater still open over on 45 north? The odd thing about it, I pass by there like everyday, and never noticed if its still there. If it isn't, how long has it been like that?
rumor has it he's sending in Chuck Norris. of course, Chuck Norris can't be sent in. he's omni-present.
I'm dissapointed there will be a LA Fitness where the Vans park used to be. It always seemed full when I was there. I don't know why it closed. Once Surfers' Paradise closed down, I stopped going to the Marq*E for anything other than movies. It had the best seared tuna I've had in Houston. Now we just make it at home.
"They do, however, plan to develop space for a police storefront there, after a fatal shooting in the parking lot and a separate nightclub stabbing incident last month."
there's nothing like a good stabbing incident. i went to the comedy club a while back...as we were walking in there was a line to get into Drink, their bar/club. the bouncer and some guy waiting in line started arguing...they ended up fighting, beating the crap out of each other. i can assure you, the movie theater is losing business because of all this. they need to clean that crap up.
they had a couple of incidents back to back, on a wed and a thurs, someone got shot in the parking lot of Drink and then someone was sabbed. other than that, I think its pretty safe. having frequented Drink a couple of times, my impression is they let a few too many younger people in there.
I'll sometimes go there on a weekday and catch a movie when there are like 3 other people in the theatre. I once hung out there with a friend in the parking lot after going to the movies until 2am with no incident. Shame it has gotten weird.
Forreal I thought it would be quite the attraction I still go from time to time I hate the d*mn GAME CARDs at jillians GAME CARDS ARE THE DEBIL!! Rocket River
i hear ya. my concern would be that the garage is shared by both the club and the theater. wasn't it a random deal?? the shooting i mean? didn't they get robbed at gunpoint and ultimately shot??
