Los Angeles, CA – March 2018, Centers Business Management (CBM) completes a new leasing transaction with an expanding Latin fusion restaurant in a prime West Los Angeles retail strip center
CBM leasing specialist/property manager, Roselene White, recently completed a lease transaction, representing the landlord in a deal with Latin Fusion Kitchen. An expanding area restaurant, Latin Fusion Kitchen will occupy a 1,165 SQFT unit in an exceptionally well-located corner retail shopping center. The property is situated at the major signalized intersection of 3rd Street and La Cienega Boulevard in a highly desirable section of Los Angeles, bordered by Beverly Hills and West Hollywood. Most notably, the property is directly across for the newly remodeled Beverly Center. A prominent Los Angeles landmark, the Westfield owned retail complex recently completed a $500 million-dollar renovation project Additionally, the property is adjacent to the renowned Cedar Sinai Medical Center. And positioned at the mouth of the celebrated 3rd Street retail corridor, home to countless illustrious upscale boutique clothing and jewelry shops and trendy eateries.
Latin Fusion Kitchen’s first store is in the high-profile Hollywood + Highland complex, on legendary Hollywood Boulevard, one of Los Angeles’ top tourist destinations. Serving up an “American” take on “classic Latin cuisine,” Latin Fusion Kitchen offers a diverse menu of popular Hispanic foods. The thriving eatery commands outstanding reviews on Yelp, Tripadvisor, Menupages, and Grubhub. And also earned a “Top 10 Latin Fusion Restaurants” designation from Yelp, currently the web’s leading restaurant review site.
“We faced a number of tricky challenges in leasing this space,” says CBM property manager, Roselene White. “Obviously, a restaurant is the highest and best use for this site. But with eight food uses already in place (in an 11-unit strip center and only approx. 30 parking stalls), parking was a HUGE concern for most prospective tenants,” White notes, adding “And the landlord was intent upon a shorter-term lease, which excluded most credit tenants.” According to White, creditworthy tenants typically only entertain 10-year minimum lease terms. Further complicating matters was the impending expiration of the prior restaurant tenant’s grandfathered code enforcement exceptions: “We only had 90-day window to obtain all necessary business licenses and operators permits,” White says in reference to updated code requirements that take effect after a restaurant space has been closed or not in operation for more than three months. And lastly, there was the issue of the landlord’s expectations for netting a high dollar rental rate. “With the Beverly Connection (another retail complex on the opposite corner of 3rd Street + La Cienega Boulevard) commanding as much as $25 per foot for some units, the landlord had quite high ($$$) expectation.”
Fortunately, Latin Fusion Kitchen checked all the boxes and then some! “While the center offers a diverse variety of cuisine – ranging from Fat Burger and Subway’s traditional fast food fare, to the more ethnically unique Mediterranean, sushi and pizza options – Hispanic food was the one selection we were missing!” White notes gleefully. Latin Fusion Kitchen, well-represented by their astute and capable tenant-rep broker, presented as a competent operator, was comfortable with the parking limitations, willing to accept a shorter-term lease, and capable of paying a completive rental rate. The final result being a win for both the landlord and the tenant.
“Food uses continue to be the most productive retail segment. But this deal illustrates all the hallmark challenges in getting a restaurant deal done: parking, use-type, and rental rate,” says CBM President, Rick Rivera. “Even if code requirements don’t limit parking, prospective tenants often look at a food-heavy site and say ‘this center is under-parked.’” And that perspective scares off many quality operators,” notes Rivera. But, as Rivera further points out: “The reality is multiple restaurants can work [in a smaller center] regardless of parking. And 3rd + La Cienega is a PRIME example. The tenant Latin Fusion Kitchen is replacing a thriving business in that space for over 25 years!”
For more information about CBM and their retail leasing and property management services, please contact: Rick Rivera 310.575.1517 x201 | email@example.com.