Retails and restaurants closed in older Irvine Retail Centers.

[bkshopr_IHB]

About 18 years ago when I first introduced Sam Woo to TIC I remember his lease came with a mandatory interior tenant improvement remodel clause. As a matter of fact it should be about now that Sam Woo should have already closed his restaurant for the refurbishment. TIC in addition to the financial portfolio and marketing strategy plan tenants are required to remodel their stores after the specified years of occupancy. I have not been to Sam Woo lately can someone verify for me whether his door is closed? TIC is very clever to make sure its center will always have a fresh look and avoid the dated aesthetic. This is a financial burden to the tenants.



Many of TIC's early 90's and late 80's retail centers in Westpark are losing many tenants because tenants decided not not invest a huge amount of money for the remodels and especially during the recession. The terms according the several Chinese tenants is somewhere between 15-19 years. China West at Main and Harvard decided to close his restaurant after 18 years at that location. Tenants have left Crossroad at Barranca and Culver. Target also has been there a long time and may be planning its exiting strategy. Other duplicated retails at the Marketplace may be subject to the remodel clause by securing a space at the District gives them more options. The Tenants at Alton and Culver are also facing similar challenges.

 

[hehegrl_IHB]

I just went to Sam Woo for lunch today, the Sam Woo Seafood Restaurant side is currently close for remodeling.

 

[FairEconomist_IHB]

<blockquote>TIC is very clever to make sure its center will always have a fresh look and avoid the dated aesthetic. </blockquote>


Not if it leaves them with empty commercial space. Better would have been a sinking fund which the tenants could only use for improvements. If the tenant left, TIC could use that sinking fund to attract a replacement tenant. Having a huge cost drop on a *tenant* at a specified time is just bad business - it's basically a huge incentive to leave.

 

[EvaLSeraphim_IHB]

[quote author="bkshopr" date=1254203034]... by securing a space at the District gives them more options.</blockquote>


Well... If I were a small business tenant, I don't know if I would consider The District. I read some of the bond documents for the Mello Roos (or tax allocation?) bonds on that place and, IIRC, they are re-paid by everyone <em>except</em> the big anchor tenants (Costco, Target, etc.). I don't recall the rates, but I think someone with an established clientele would be better off at an older established center - and with less frustrating parking.

 

[irvine_home_owner_IHB]

Wait... bk introduced Sam Woo to Irvine?



So he's to blame for all these FCBs!

 

[Anonymous_IHB]

[quote author="hehegrl" date=1254203162]I just went to Sam Woo for lunch today, the Sam Woo Seafood Restaurant side is currently close for remodeling.</blockquote>


Ah .. that makes sense. Quail Hill Crystal Jade was packed recently and I wondered why, now it makes sense.

 

[ABC123_IHB]

[quote author="EvaLSeraphim" date=1254260903][quote author="bkshopr" date=1254203034]... by securing a space at the District gives them more options.</blockquote>


Well... If I were a small business tenant, I don't know if I would consider The District. I read some of the bond documents for the Mello Roos (or tax allocation?) bonds on that place and, IIRC, they are re-paid by everyone <em>except</em> the big anchor tenants (Costco, Target, etc.). I don't recall the rates, but I think someone with an established clientele would be better off at an older established center - and with less frustrating parking.</blockquote>


looks like you're right



<a href="http://fastfood.freedomblogging.com/2009/10/01/another-fast-casual-eatery-closes-at-the-district/35175/"> Another fast-casual eatery closes at The District</a>



<blockquote>Go Roma is out and Native Foods is in at the The District shopping center in Tustin.



The Italian eatery closed, making it the third restaurant to shutter at the outdoor mall since it debuted two years ago. Tacone and The Cravery have also closed. (LIST: O.C. Restaurant Closures)



When the District opened two years ago, Go Roma was dubbed a ?hot 2007 concept? by industry insiders. The Tustin location was intended to be the first of more locations in California.



But the ?current economic conditions? could not support Go Roma?s West Coast expansion, which resulted in the closure of The District location, mall officials said. Go Roma operates six restaurants in Illinois ? down from nine in 2007, according to its website.



Native Foods, a Palm Desert vegan chain, will replace Go Roma by the end of the year.</blockquote>

 

[Spinderella_IHB]

That's too bad about Go Roma. I've eaten there several times and it was great food and service. Right next to the movie theater! Doubt I'll visit, "Native Foods". Blech.