‘More Know-How’ Can Make Houston More Conversions, Less Disasters

“If the Alamo was in Houston, it would have fallen.”

A joke that has been going on for a long time this week.

Despite protests and permitting issues, property owners are tearing down the city’s historic Kirby Mansion, possibly building a new store or gas station.

The Tudor revival structure dates from the 1890s but lacks historic landmark protection.

This project exemplifies the style that complicates the mission of revitalizing Downtown Houston: The city’s old buildings are often neglected and not considered worthy of investment.

But old buildings have potential, as well as sentimental and nostalgic values ​​that can entice tenants, said the panelist BisnowDowntown Houston’s Next Chapter event at the Marriott Marquis Houston on Tuesday. Houston just needs more institutional knowledge, and perhaps more city employees dedicated to the mission of preserving and using older buildings.

“We need to consider things like that, and we also need to consider how we prevent disasters like what happened last week with the destruction of beautiful structures,” said Ori Batagower, new development and acquisition director for The Deal Co.

State filings detail a $2M project called Braketime Smith Road with a 13K SF single-story C-store to be built at 530 Pierce St. on the border of the Kirby Mansion property. The owner of the property is an entity related to brothers Omair and Usman Bashir, who own the Brake Time gas station chain, the Houston Chronicle reported.

“You can’t convince us that only these sites should be used and that there is a greater benefit,” said Batagower. “We have to preserve structures like that. We can’t let that happen just through the wrecking ball.”

When there was concern to see what happened at the Kirby Mansion, it was too late for the city to get involved, Houston Chief Economic Development Officer Gwendolyn Tillotson-Bell said. That’s why staff are now talking to people in the private sector about layering incentives and potentially bringing in previously unconsidered sources of equity to make conversion projects possible, he said.

But for many years, it was cheaper and more feasible to build new structures in Houston, especially since the metro has a lot of undeveloped land and can grow by developing it. The market doesn’t have the muscle memory to use existing facilities, unlike other cities with more historic buildings, LeVass Ventures founder Ryan LeVasseur said.

He added that The Deal Co. does a good job with its projects like Sawyer Yards and the mixed-use development featuring Meow Wolf in the Fifth Ward, but is an anomaly in the market.

“We need more know-how to reuse this building,” he said. “If the city had an entity … that could hold the hand of the developers to help them understand how to go through the permitting process, through the process of getting the building designated as historic, that could unlock some of the value of the building.”

Texas is one of the best states to use historical tax credits, said LeVasseur, since 25% of the qualifying value is eligible, without a cap, like some other states. The credit may also be stacked with the federal historic preservation tax incentive program.

Many Downtown Houston buildings are close to 50 years old, and while there are no hard limits to qualify for historic tax credits, other structures are outmoded and eligible, LaVasseur said.

Downtown Houston+ conducted an office conversion feasibility study in 2023 that found that the city’s office stock is difficult to convert due to large buildings, large floor plates, ongoing tenants and the majority of new buildings too low for historic tax credits.

However, there are developers who can use it. One City Center at 1021 Main St. is being redeveloped by Chicago-based 3L Real Estate. The $26.5M project will convert the 780K SF office building into an apartment and corporate suite-hotel hybrid.

Another ongoing project is the conversion of the Folgers Coffee Factory in the East End to Frank Liu Jr. Academy of Music and Arts, a no-fee public charter school.

Converting is also better for the environment, emitting 70% less carbon dioxide than knocking down and building new, said Lone Star PACE Chief Operating Officer Glenn Silva. Young renters cite sustainability as a top priority when choosing a home, he said.

While new developments also have a place in the market, some people want to live and work in older buildings because of the experience and sense of nostalgia they provide, the panelists said.

“People want more than just going to a big box or a standard office development,” Silva said. “They want to come in and see the character. They want to see the old-school charm, the craftsmanship.

While the city has been talking to and helping developers start community-friendly projects, such as the East End’s adaptive uses, panelists said the staff would like more support.

“The city can use what we call historic preservation and adaptive reuse czar,” LaVasseur said. “People who are very knowledgeable about historic tax credits and adaptive reuse.”