“When people think of River Oaks, they think of the theater. Kimco felt it was very important to keep that aspect as this sense of place,” says Kimco Vice President of Leasing Andrew Bell.
Kimco wanted the theater to be restored and succeed, but it had to find the right operator with the right vision, and it had to make economic sense.
“What became clear to everybody is that [the previous] business model, especially coming out of COVID with question marks on theaters, just didn’t look like a viable option,” Icken says. “We just opened the door to Kimco to find the right operator, which they did on their own. Kimco had to make the business model work for their interest.”
And that’s exactly what the REIT did. “Kimco stepped in, saved the day, and has really shown how outstanding their commitment is to the community and to the city of Houston,” Kamin says.
Versatility is Key
In early 2022, Kimco announced that Culinary Khancepts, the parent company of Star Cinema Grill and led by CEO Omar Khan, would take over the lease with plans to overhaul and operate the venue.
“It took an operator who understood and admired the theater’s history. Omar really stood out from the pack,” Bell says. Culinary Khancepts is the only Houston owned and operated cinema chain.
Many operators vied to take over the theater, but Khan’s vision and business plan rose to the top. “No one else was reimagining the River Oaks Theatre,” says Star Cinema Grill Director of Development Jason Ostrow. “They were imagining it as the exact same thing it was before. But our thought was, ‘Can we keep it what it was before, but also evolve it into something more suitable for the needs of the city?’”
With that in mind, Culinary Khancepts undertook a two-year, multimillion dollar, studs-to-screen renovation that preserves the theater’s rich, cherished history while integrating modern technology and amenities.
They restored the original Art Deco design, iconic marquee, and terrazzo flooring, but it now features new screens, advanced projection and sound systems, two bars, and a stage for live performances including music, comedians, and other live shows.
That versatility is key. There’s a very different pricing model for live performances, Ostrow says, noting that they’re seeing high demand for booking events.
“When you do movies, there’s only so much somebody’s going to pay for a movie ticket,” he notes. “When you start doing live events like Rocky Horror screenings or comedians or concerts, your price points can be significantly higher. You gain the ability to bring in much more revenue by diversifying what can be done in the space.”
Culinary Khancepts also added plush seating with personal dining tables and created a food-driven experience beyond traditional movie snacks. River Oaks offers an updated food-and-beverage menu served from the brand-new, 5,000-square-foot-adjoining Leo’s River Oaks supper club, owned and operated by Culinary Khancepts. The menu features upscale dining options delivered directly to theatergoers’ seats.
“The ability of having our own restaurant next door with a shared kitchen gives us the flexibility to make the menu that best suits the movie or event that’s going on,” Ostrow says. “That’s all significantly added revenue versus popcorn, candy, and soda.”
The finished product is earning rave reviews. “They’ve done such a beautiful job preserving it. It was done the right way,” Kamin says. “We don’t always get these wins, but this one matters.”
Beyond Theater Restoration
While Kimco’s acquisition of Weingarten included a portfolio of shopping centers, the company described the West Gray-River Oak-related area as prime real estate, and they had significant plans, according to Icken.
During the theater discussions, Kimco and the city began conversations about Kimco’s strategies to improve the entire area, turn over some tenants, and develop a long-range plan for what they described as their “centerpiece shopping center in the middle of Houston,” he says.
“We really needed to embrace the entire street and the historic nature of the entire shopping center, and that’s really what Kimco brought to this,” Icken adds. “They said, ‘let’s make the theater part and parcel of a broader redevelopment,’ which is something they have underway right now.”
