HOUSTON – (Realty News Report) – The iconic Montrose “Disco Kroger” grocery site has been sold to Southeastern Real Estate Group, a Georgia-based developer that plans to demolish the vacant store and build a new mixed-use project.
For more than four decades the Kroger at 3300 Montrose Boulevard served the lively Montrose neighborhood, once operating 24 hours a day to accommodate late-night crowds from nearby bars and clubs. The store was known for its steady stream of early-morning shoppers and became a local landmark tied to the neighborhood’s vibrant LGBTQ+ culture.
Earlier this year the Disco Kroger closed. The windows have been boarded up and the building has attracted graffiti while plans move forward for demolition. Kroger’s corporate office cited insufficient profitability as the reason for closing the location.
The property covers about two acres bounded by Lovett Boulevard, Yoakum, Hawthorne and Montrose Boulevard, one block south of Westheimer. The site’s location places it near several significant Montrose developments: Hines is finishing a 34-story residential tower and the updated La Colombe d’Or hotel is nearby. The Kroger site is also a block from the former Chinese Consulate building, which was closed by the U.S. State Department last year amid espionage allegations.
Southeastern Real Estate Group, headquartered in Augusta, Georgia, acquired the Montrose parcel. Representatives for the firm did not respond to messages Tuesday afternoon, but the company is expected to pursue a combination of retail and multifamily development on the site. Southeastern has experience handling transactions and developments involving former Kroger properties.
Across Lovett from the former Kroger property, a nearby Westheimer retail center was recently purchased by Skanska, which paid $27 million for a 2.86-acre tract at the southwest corner of Westheimer and Montrose Boulevard. That 44,000-square-foot retail center, which previously housed a Spec’s liquor store, will be demolished to make way for a major mixed-use development. Before Southeastern’s acquisition, the Kroger parcel would have offered a natural expansion opportunity for Skanska’s project.
By coincidence, an unrelated store in Atlanta’s Buckhead district—also nicknamed “Disco Kroger”—located at 3330 Piedmont Road, is reported to be slated for demolition as well.
The Montrose neighborhood continues to evolve rapidly, with parcels like the former Kroger site drawing developers looking to replace aging retail buildings with higher-density residential and retail projects. The sale marks another step in Montrose’s ongoing transformation and signals new investment interest in one of Houston’s most storied urban corridors.
Feb. 3, 2021 Real Estate News Report Copyright 2021
File: Disco Kroger Site Sold
Caption: Former Kroger store at 3300 Montrose in Houston. Photo by Ralph Bivins. Copyright 2021
File: (2) Montrose. Lower Westheimer. Disco Kroger Site Sold in Houston. Southeastern. 2-3-21