Building Block

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Building Block
Storefronts along the west side of La Brea Avenue between First and Second streets.

Rodeo, Robertson, Melrose and … La Brea? Retail developer Madison Marquette in Washington, D.C., is betting more than $50 million that its rejuvenation of an isolated block of stores on La Brea Avenue will help turn a disjointed stretch of one of L.A.’s busiest thoroughfares into yet another destination shopping district in Los Angeles.

The project spans 11 buildings and 90,000 square feet between First and Second streets on the west side of La Brea. The street is a thoroughfare for drivers traveling between Hollywood and the Santa Monica (10) Freeway. The location poses a challenge because the developer not only has to find a way get drivers to see the shopping area as they zip past, but also provide enough parking so they can stop.

Brandt Leitze, general manager for Madison Marquette’s La Brea property, acknowledged that dense traffic and limited street parking will be tough for the retail center. But the property has a three-story parking garage on the south end, and a vacant lot to the north will be paved for parking, too.

“Having that parking was going to be a key ingredient to our success,” he said. “We try to make it appealing to customers to make up for the unfavorable aspects of La Brea Avenue.”

Jay Luchs, a broker for CBRE Group Inc. in West Los Angeles who has represented dozens of properties in high-end Westside shopping areas, said the site has advantages, but he remains skeptical.

“The area does have somewhat of an edgy vibe, and if done the right way, they can make that block really cool,” he said. “But I don’t know that it’s going to be the next big destination in L.A.”

Luchs worked with Madison Marquette in early stages of the project but is no longer involved.

So far, though, some retailers have been voting with their signatures. At the south end of the property, three tenants have moved into renovated spaces and five more have signed leases with plans to open in coming months. Two more spaces have been leased on a month-to-month basis to pop-up shops since the beginning of the year.

‘Fascinating street’

A cluster of independently owned retailers have held shops across the street from the La Brea project for many years, including Nick Metropolis Collectibles, Liberation Yoga, and clothing stores Undefeated Inc. and American Rag Cie.

Eric Hohmann, West Coast managing director for Madison Marquette, said the street could benefit from being more cohesive.

“La Brea is a fascinating street, but it’s hard to pin down sections of La Brea, because there are a lot of undifferentiated things going on,” he said. “Los Angeles is famous for having various kinds of retail districts, and I think this part of Los Angeles needs one, or at least one better than exists today.”

The strip was built in the 1930s and was once home to an Edsel auto dealership. The most recent tenant was Continental Graphics Corp., a technical graphics firm that moved out in 2002. Madison Marquette bought the La Brea property in 2008 after plans to demolish the block to build a mid-rise condo project fell through when the recession hit.

Hohmann said it took years before Madison Marquette could do much with the space because the company didn’t want to make long-term commitments in a down economy.

“Lease deals you could do in 2009 would be deals you’d regret in 2012,” he said. “So we spent that time planning, and we did a lot of demolition work.”

The project started moving in 2010. Last year, the company commissioned L.A. artist Shepard Fairey to paint a bright mural on the parking structure. It also began leasing some of the smaller spaces on a month-by-month basis for pop-up shops, including one that Calabasas band Incubus used as part boutique, part production studio.

Madison Marquette does some leasing and property management work in Los Angeles, but the La Brea site is the first the company has owned, redeveloped and operated in the area.

Right mix

Hohmann said Madison Marquette looked for nontraditional tenants to line the block to complement the existing retail across the street.

“Here was an opportunity to do something more creative and innovative, rather than going to the usual mall suspects,” he said. “We’re adding a more feminine touch to the block. There are tenants on the other side of the street, like Undefeated and Stussy, that are fantastic, but appeal mostly to men. We wanted to sort of broaden on that seam to appeal to women as well.”

Retailers that have already opened shops at the Madison Marquette project include New York vintage fashion boutique What Goes Around Comes Around; clothing boutique Kelly Cole, which moved from West Third Street; and restaurant Sycamore Kitchen, the second for Hatfield’s duo Karen and Quinn Hatfield.

Those that have signed leases and will open in the next few months include jewelry boutique Judith Bright, eyewear boutique Garrett Leight California Optical, contemporary Mexican restaurant La Condesa, fashion boutique Steven Alan and home design store A+R.

But despite the many names moving onto the street, the La Brea project still lacks an anchor tenant. Hohmann said he doesn’t think the area needs one, especially with the expansive, longtime retailer American Rag across the street.

“I would really call American Rag our anchor for this whole district,” he said. “We’ve been successful leasing small spaces without doing a traditional anchor tenant, and I think it’s because if we do the merchandising right, we don’t need one. We’ve also got that American Rag customer.”

Luchs said he suspects that Madison Marquette wouldn’t turn down an anchor tenant, but rather the company is having a difficult time getting such a commitment.

“To me, that doesn’t make sense,” he said. “I think you take the best of what you can get, and if they’re lucky they’ll get one great brand in there. But to not need an anchor. … I suppose a big tenant might rather go to Sunset or Beverly Hills.”

Hohmann said that while the redevelopment project has been challenging, it has had its rewards, too.

“This has been a fun project for us; it’s not traditional shopping center strategies,” he said. “We’re really doing something different for us and it’s been a real learning experience.”

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