A planned grand opening of the mall has been delayed until the summer. Meeting requirements for a wastewater discharge permit has slowed things down. Meanwhile, the owner of Cross Creek Shopping Plaza says the economy has had some affect on finding new tenants.
By Olivia Damavandi / Staff Writer
The delay of the Lumber Yard shopping mall’s opening and the empty vacancies in Cross Creek Plaza have led some to believe the economy’s hit on the retail industry is making potential tenants hesitant to commit to leases. Representatives of both properties stated different reasons for the delay of store openings and vacancies, but both predict that spring and summer will strengthen the business pulse.
Lumber Yard mall developers told The Malibu Times in December that the mall was scheduled to open the first week of February, but it has yet to house any tenants. Under a special lease agreement with the City of Malibu, Lumber Yard mall owner Richard Weintraub will pay the city $925,000 per year. The city will then receive 30 percent of the mall’s annual profits when they exceed $2.2 million.
“As far as I know there are no issues and it’s [the Lumber Yard mall] proceeding ahead,” Reva Feldman, city administrative service director, said in an interview Monday.
Fiona Hutton, publicist for Weintraub, said in an interview Monday, “The tenant base is strong. It [the delay] has nothing to do with economy’s effect on retail.”
Hutton said the delay of its opening is a result of compliance requirements issued by the Regional Water Quality Control Board when it issued the mall a temporary wastewater discharge permit that allowed its retail stores to open for business before its restaurant tenants move in.
“Ownership has been working to ensure the water treatment system will adhere to conditions imposed by the Los Angeles Regional Water Quality Control Board as terms for receiving their permit, including meeting a new phosphorus limit, which required new infrastructure demands, and installing monitoring wells,” Hutton told The Malibu Times.
Clients will move into the mall beginning in March, Hutton said. Filling the vacancies will be an ongoing process that will not happen at once, but Hutton said the mall would hold its grand opening this summer.
“It’s a really unique property [that will have] high end clients,” she said. “Construction takes time, it’s not a perfect science.”
Some of those high-end tenants, Hutton said, are clothing stores Planet Blue Kids, J. Crew, James Perse, Alice & Olivia, Kitson, Maxfield, Theory and Tory Burch, home store Andrianna Shamaris and the Crumbs Bake Shop. The restaurants the mall will house have not been announced yet.
Pouya Abdi, owner of the Cross Creek Plaza across the street from the Lumber Yard mall, said Friday in a telephone interview that the economy has had a discernable effect on both retail and real estate.
“I’m concerned about the economy, but thankfully Malibu has held up better than other areas,” Abdi said. “January is known to be the worst month in sales for everyone. I feel like business will be better in the summer.”
A number of longtime tenants of the Cross Creek plaza who have recently relocated due to rent increases have not yet been replaced. Pet Headquarters, Pritchett-Rapf & Associates and Casa Escobar were recent exits.
“We’ve had a struggle from day one trying to lease the center,” Abdi said. “The rents are a little lower today than they were before September of 2008, but the market is getting a little bit better.”
Abdi said he noticed an increase in prospective tenants at the beginning of this month, and hopes the trend continues.
“I’m hopeful for the interest we’re starting to see in Malibu,” he said. “We are having a very hard time doing deals right now but I think the updating of the property will help bring more customers to the center.”
Abdi said the updates will make Cross Creek Plaza “cleaner, greener and more presentable to shoppers,” but said they will not be drastic.
“Everything is on hold right now,” he said. “But it’s looking better.”
Lumber Yard Mall stores
Clothing
Planet Blue Kids
J. Crew
James Perse
Alice & Olivia
Kitson
Maxfield
Theory
Tory Burch
Home
Andrianna Shamaris
Food
Crumbs Bake Shop
The two restaurants the mall will house have not been announced yet.