HOUSTON—Uptown Park owner AmREIT announces a $1.2 billion renovation of the retail center in the Uptown District in Houston.

The long-term master plan of the development identifies seven potential development sites to explore "high-density vertical improvements" that could include high-rise residential, hotel, and an office component, says AmREIT.

Uptown Park is a 169,110-square-foot outdoor retail center located along Post Oak Boulevard near the intersection US 59 and Loop 610. The development attracts high-end retailers and restaurants and spas.

The Houston-based development firm says it has reached an agreement with a major national developer to build a residential tower on the Baker Site in the northwest corner of Uptown Park. AmREIT tells shareholders they began the process of preparing the existing single-story retail site for redevelopment by terminating leases or relocating tenants.

The redevelopment represents an opportunity to capture a potential for higher net operating income due to the increase in density.

"For example, the anticipated ground lease at the Uptown Park – Baker Site, if executed, would represent a 200% increase over the in-place NOI generated by the existing 12,200 square feet of inline retail space," said AmREIT in an earnings statement.

Uptown District is located in the Galleria submarket along Post Oak Boulevard. The Uptown District announced last year plans to widen Post Oak Boulevard with addition of mass transit lanes within a landscaped median while maintaining six automobile-dedicated lanes to improve traffic mobility.