BLUE MARTINI ON THE WAY OUT OF CITY PLACE?

BLUE MARTINI ON THE WAY OUT OF CITY PLACE?

For the 2nd time in a month there is another story about a large multi unit restaurant facing bankruptcy at City Place. Blue Martini, who has been a tenant at City Place for 14 years, is facing eviction for non payment of rent. Their arrearage is reported to be over $140,000 but they say they will resolve the dispute amicably and have no intentions of leaving. This is also what was said by Brewzzi's last month. That case is still pending but the establishment remains closed. What is going on at City Place these days? Like all lifestyle centers in Florida, City Place is a project that draws people looking for entertainment and dining. They do very little shopping, and there is a lot of competition for the dining dollars. While the restaurants are all different with respect to cuisine, there are lots of options and usually all the business comes on the weekends. So you are looking at really 2 good days per week, very tough to make a living on that especially when you have an enormous restaurant and pay substantial rents. I was working with a restaurant there in the past and learned that the operating expenses, better known as CAM, was about $30 per square foot. If that was the rent alone it would be daunting. For example, most of the restaurants are at least 5,000 - 6,000 SF. So let's say 5,500 SF, just with CAM and sales tax pays $14,575 per month assuming there is no rent! And there certainly is so assume they pay $20,000 per month minimum. With all the employees, limited week day profits, stiff competition how can any of these restaurants make it? You may have heard that a bowling alley recently opened here, providing yet more entertainment options. It also offers food, which further cuts into the restaurants profits and potential customers. Given all of this, I think it is a sure bet that the revolving door of restaurants at City Place will continue until some long term solution is found. But there is something else working against it. Any retail properties that have 2 stories don't seem to succeed for whatever reason in Florida. City Place happens to be the only lifestyle center I know of that has 2 stories. I really hope they can find a solution and make the project work. It is a huge improvement from what was there before and the great hope is that eventually more residents will move into all the condos downtown and make it work. As always thanks for reading and have a great day.