Blue Star to make room for retail

For the past 25 years, the Blue Star Arts Complex has been a haven for the arts. Now its owner is looking to make room for more retail.

James Lifshutz, the property's owner, said that he's looking to increase foot traffic at the complex by adding retail in space along South Alamo Street. Currently, he's in talks with gallery owners to find a way to reconfigure and update the buildings to make space for new retail tenants.

“We're looking to reconfigure the frontage along Alamo Street to create better retail and several of the artist-run galleries will be affected. So we're working with them to try and figure out a way to keep them there. I'm hopeful and expectant that we'll be able to keep them there. Not in their existing spaces, but in reconfigured space.”

The plan is in preliminary stages, but Lifshutz said he hopes to have new tenants in place by midyear. The property owner already has talked to several interested parties that could bring a neighborhood grocery market, coffee shop, bakery and an icehouse with a music venue. Some of the prospective tenants Lifshutz has spoken to also have existing businesses locally and in Austin, he said.

“This is not Payless Shoes. This will be retail that enhances and improves the life of an arts community,” Lifshutz said.

No leases have been signed for any of the space that's expected to be reconfigured. A lease was signed for a new bar, but it's located toward the middle of the complex. Bar 1919 will have the feel of an upscale speakeasy that's expected to open in late March, said Jeremy Jessop, the asset manager for the complex.

While everything is still in the planning stages, Jessop did say they will look to make updates such as adding central air and heat and new walkways to make the area more pedestrian friendly. Also, the galleries could have glass fronts that would allow visitors to enjoy the art without the galleries being open.

Blue Star's current footprint is about 160,000 square feet of art, retail and residential space. The cost for retail space there is about $15 per square foot, Jessop said. With the anticipated changes Lifshutz also said he plans to raise rents there.

Lifshutz added that he plans to secure financing to start construction on the second phase of Blue Star at the old Big Tex property by the end of this year.

“The art is the soul of the complex. With the improved retail, it really fulfills and brings to full blossom the original intent of Blue Star. It was never intended to just be a place where people make, look at, teach, buy and sell art. It was always intended to be all those things along with a vibrant 30-day a month life to it.”

Stella Haus is one of the art galleries that could be affected by the proposed changes. It has operated in the same space for nearly 10 years and Dayna De Hoyos, the gallery director, said that she and others hope to stay in their current spaces.

“We enjoy being in the Blue Star Arts Complex. We'd love to continue renting our spaces,” De Hoyos offered as a statement for her gallery and two others: Cactus Bra and Three Walls.

Neither De Hoyos nor the other gallery owners wanted to comment further until the negotiations concluded. But De Hoyos did say that raising rents would make things more difficult since the galleries don't make much money throughout the year.

The anticipated additions would bring added competition to the complexes current retail tenants, but Joey Villarreal, owner of the Blue Star Brewery, Blue Star Bike Shop and Joe Blue's, said he welcomes it.

“A synergy of different businesses can help bring more people to the area. There could be a nice exchange of clientele. I think it will be good.”

vlucio@express-news.net

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Blue Star to make room for retail