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Targeting Target
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| Downtown real estate sources say that negotiations are under way to open a Target in the former Macy’s space in the 7+Fig shopping mall. Owner Brookfield Properties has been looking for a tenant since the department store left in early 2009. Photo by Gary Leonard. |
Though No Deal Has Been Signed, There Are Advanced Talks to Bring the Retailer to 7+Fig
by Richard Guzmán
DOWNTOWN LOS ANGELES - When news broke in January that the Macy’s in the 7+Fig shopping mall would close within a few weeks, speculation quickly began about the future of the prime 125,000 square feet of real estate owned by Brookfield Properties.
Bert Dezzutti, senior vice president of Brookfield Properties, said at the time that the space in the mall at Seventh and Figueroa streets would not stay vacant for long, and that they were already in talks with potential tenants.
Nearly a year later, the property remains closed with the doors blacked out to hide the empty space. While the company has been tight-lipped about potential tenants, numerous Downtown real estate sources told Los Angeles Downtown News that advanced negotiations are underway between Brookfield and Minneapolis-based retailer Target.
“At this point, it’s premature to confirm any specific plans for Figueroa and Seventh Street,” said Hadley Barrows, a spokesperson for Target, adding that there may be more information “in a few months.”
“It’s our policy that we don’t talk about any negotiation or comment about [possible] tenants,” Dezzutti said last week.
The talks are not entirely new. Several years ago Target expressed interest in coming to the mall, according to a figure who was involved in negotiations at the time. Although those plans did not materialize, multiple tenants in 7+Fig also told Downtown News that they have heard that a Target could be coming.
“We’re expecting it soon,” said Jose Camarena, owner of Sloan’s Dry Cleaners, located on the bottom level of the mall, next to the empty three-floor Macy’s space. “Customers are excited and saying they’ll be here shopping all day if it opens up.”
He added, “It’s been something [Brookfield] has been talking about for a while, but from what I hear, it’s happening soon.”
Good Spot
Real estate sources familiar with the situation stress that no deal has been signed, and that no timeline has been announced for when a Target could open.
Still, those who follow Downtown closely say the mall is an ideal location for the retailer and would draw a following of residents and the corporate crowd.
“Target anywhere Downtown is going to do well,” said Derrick Moore, vice president of brokerage services at real estate firm CB Richard Ellis. “A Target there is going to re-identify that center and give it a fantastic identity.”
Barrows said Target does not always follow a strict formula when finding a new location.
“In urban locations it’s about finding a place where we can adopt one of our prototypes to the urban spot,” she said, using a term that refers to a store layout. “We want to make sure it fits in well with the area where we want to put the store. We also look at demographics, other stores nearby and how they are performing.
The Targets closest to Downtown Los Angeles are in Glendale, Eagle Rock, Pasadena and West Hollywood.
In general, she added, most Target stores are in spaces that are about 128,000 square feet, but there is no standard rate for a store size.
“Each site is unique,” Barrows said. “We look at a number of factors rather than a strict formula.”
Previous Negotiations
If the Target plans come to fruition, it would mark a comeback for a deal that was attempted previously.
About three years ago, as a senior director of retail for Cushman & Wakefield, Amy Raine represented Brookfield Properties when Target was looking at an 80,000-square-foot space in the mall vacated by Bullocks.
“When we first talked to Target, the biggest problem was that there wasn’t really enough space for Target and at the time Macy’s was there,” said Raine, who currently is doing contract work for Cushman.
With the Macy’s site now available, it would also be possible to combine it with the still vacant Bullocks space, Raine added.
She said during the previous talks with Target there were also logistical issues about how customers would get their shopping carts back to their cars and about the best place to locate the entrance for the store.
Brookfield acquired the mall and the adjacent Ernst & Young office tower in 2006. Some upgrades have taken place since then, including a repainting of the old 1980s color motif.
Dezzutti previously told Downtown News that plans for a second phase of the upgrades would be announced later, and would be tied in with the future tenant of the Macy’s spot.
Justin Weiss, assistant director of economic development for the Downtown Center Business Improvement District, said Target would fill a need in Downtown. A 2008 demographics study conducted by the DCBID found that when it came to a new discount store for the area, local residents wanted a Target far more than any other retailer: More than 77% of the respondents picked Target, with Wal-Mart garnering just 6.6%.
“Target would fill an immense void in the market for quality hard and soft goods that cater to the young and upwardly mobile population that work and live in Downtown L.A.,” Weiss said.
Raine thinks that Downtown would not be the only beneficiary. She said the area’s growing residential base would be appealing for the retailer.
“The demographics are here in Downtown for a Target and they’ve been interested in coming Downtown for years,” she said. “Their customers would not just be people who live Downtown but also the surrounding community.”
Contact Richard Guzman at richard@downtownnews.com.
page 1, 11/23/2009
©Los Angeles Downtown News. Reprinting items retrieved from the archives are for personal use only. They may not be reproduced or retransmitted without permission of the Los Angeles Downtown News. If you would like to re-distribute anything from the Los Angeles Downtown News Archives, please call our permissions department at (213) 481-1448.
Bert Dezzutti, senior vice president of Brookfield Properties, said at the time that the space in the mall at Seventh and Figueroa streets would not stay vacant for long, and that they were already in talks with potential tenants.
Nearly a year later, the property remains closed with the doors blacked out to hide the empty space. While the company has been tight-lipped about potential tenants, numerous Downtown real estate sources told Los Angeles Downtown News that advanced negotiations are underway between Brookfield and Minneapolis-based retailer Target.
“At this point, it’s premature to confirm any specific plans for Figueroa and Seventh Street,” said Hadley Barrows, a spokesperson for Target, adding that there may be more information “in a few months.”
“It’s our policy that we don’t talk about any negotiation or comment about [possible] tenants,” Dezzutti said last week.
The talks are not entirely new. Several years ago Target expressed interest in coming to the mall, according to a figure who was involved in negotiations at the time. Although those plans did not materialize, multiple tenants in 7+Fig also told Downtown News that they have heard that a Target could be coming.
“We’re expecting it soon,” said Jose Camarena, owner of Sloan’s Dry Cleaners, located on the bottom level of the mall, next to the empty three-floor Macy’s space. “Customers are excited and saying they’ll be here shopping all day if it opens up.”
He added, “It’s been something [Brookfield] has been talking about for a while, but from what I hear, it’s happening soon.”
Real estate sources familiar with the situation stress that no deal has been signed, and that no timeline has been announced for when a Target could open.
Still, those who follow Downtown closely say the mall is an ideal location for the retailer and would draw a following of residents and the corporate crowd.
“Target anywhere Downtown is going to do well,” said Derrick Moore, vice president of brokerage services at real estate firm CB Richard Ellis. “A Target there is going to re-identify that center and give it a fantastic identity.”
Barrows said Target does not always follow a strict formula when finding a new location.
“In urban locations it’s about finding a place where we can adopt one of our prototypes to the urban spot,” she said, using a term that refers to a store layout. “We want to make sure it fits in well with the area where we want to put the store. We also look at demographics, other stores nearby and how they are performing.
The Targets closest to Downtown Los Angeles are in Glendale, Eagle Rock, Pasadena and West Hollywood.
In general, she added, most Target stores are in spaces that are about 128,000 square feet, but there is no standard rate for a store size.
“Each site is unique,” Barrows said. “We look at a number of factors rather than a strict formula.”
If the Target plans come to fruition, it would mark a comeback for a deal that was attempted previously.
About three years ago, as a senior director of retail for Cushman & Wakefield, Amy Raine represented Brookfield Properties when Target was looking at an 80,000-square-foot space in the mall vacated by Bullocks.
“When we first talked to Target, the biggest problem was that there wasn’t really enough space for Target and at the time Macy’s was there,” said Raine, who currently is doing contract work for Cushman.
With the Macy’s site now available, it would also be possible to combine it with the still vacant Bullocks space, Raine added.
She said during the previous talks with Target there were also logistical issues about how customers would get their shopping carts back to their cars and about the best place to locate the entrance for the store.
Brookfield acquired the mall and the adjacent Ernst & Young office tower in 2006. Some upgrades have taken place since then, including a repainting of the old 1980s color motif.
Dezzutti previously told Downtown News that plans for a second phase of the upgrades would be announced later, and would be tied in with the future tenant of the Macy’s spot.
Justin Weiss, assistant director of economic development for the Downtown Center Business Improvement District, said Target would fill a need in Downtown. A 2008 demographics study conducted by the DCBID found that when it came to a new discount store for the area, local residents wanted a Target far more than any other retailer: More than 77% of the respondents picked Target, with Wal-Mart garnering just 6.6%.
“Target would fill an immense void in the market for quality hard and soft goods that cater to the young and upwardly mobile population that work and live in Downtown L.A.,” Weiss said.
Raine thinks that Downtown would not be the only beneficiary. She said the area’s growing residential base would be appealing for the retailer.
“The demographics are here in Downtown for a Target and they’ve been interested in coming Downtown for years,” she said. “Their customers would not just be people who live Downtown but also the surrounding community.”
Contact Richard Guzman at richard@downtownnews.com.
page 1, 11/23/2009
©Los Angeles Downtown News. Reprinting items retrieved from the archives are for personal use only. They may not be reproduced or retransmitted without permission of the Los Angeles Downtown News. If you would like to re-distribute anything from the Los Angeles Downtown News Archives, please call our permissions department at (213) 481-1448.
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Reader Comments
The following are comments from the readers. In no way do they represent the view of ladowntownnews.com.
BVH wrote on Nov 20, 2009 3:00 PM:
" As a current DTLA resident, and frequent patron to existing shops/restraunts currently in 7+Figueroa. The addition of a Target in my opinion is MUCH needed and overdue, "Target - Come & Hurry!" "
Richard wrote on Nov 20, 2009 3:08 PM:
" I also live in Alhambra and I would love to go to Target if it were in DTLA! It'd be so much easier going to this Target than the one near my home because traffic in my area is really bad. I could actually walk to the DTLA Target and go straight home without any detours!
I only hope Target does come to 7th & Fig! "
I only hope Target does come to 7th & Fig! "
mish wrote on Nov 20, 2009 4:10 PM:
" I just told about 10 people that work with me....everyone had the biggest smile, and gleaming eyes....GO TARGET GO! :) "
Justin Sullivan wrote on Nov 20, 2009 4:19 PM:
" I would LOVE to have a target so close. Living downtown has a great many advantages, but affordable homewares and all the other things target sells aren't one of them. "
James Lin wrote on Nov 20, 2009 5:53 PM:
" Downtown and Target are a logical fit. Target would basically be within walking distance of their ads currently plastered all over LA Live. Tourists would see the ads and then walk up the street to shop! "
John C. wrote on Nov 20, 2009 9:37 PM:
" I live and work in Downtown. Having a Target would be great. I've gone as far as Glendale and the South Bay to shop at one. "
BonnieT wrote on Nov 22, 2009 10:10 AM:
" With Ralph's grossing a million on a Monday alone... I can only imagine what a Target would gross on a daily basis! :) "
Jennifer H wrote on Nov 23, 2009 7:04 AM:
" Oh please, oh please, oh please!!! I live just a 5 minute walk away from 7+Fig and I would LOVE to be able to walk over to Target when I need something! As it is, I have to drag out the car and travel either to West Hollywood or Inglewood (if I'm working Costco in the trip as well) and the traffic to get to either is annoying. Target, please come to downtown! "
syd wrote on Nov 23, 2009 8:45 AM:
" Yes! please, please Target, grace us with your goods. ; )
My husband and I love downtown and want to start a family here. All we need is a Target, a Trader Joes and good schools and we would never leave! "
My husband and I love downtown and want to start a family here. All we need is a Target, a Trader Joes and good schools and we would never leave! "
MMS wrote on Nov 23, 2009 6:01 PM:
" This story just made my day!!! We just moved DT and I dread having to trek out to Target so much that I go to the Walmart which is closer to my work in Orange County. I despise Wal-Mart. Target ROCKS! Downtowners would support it all the way to the bank. "
Clark Woodford wrote on Nov 24, 2009 3:02 PM:
" Thrilled at the potential of a Target.
If only some retailers would look in the Old Bank District and Arts District where it does not already take 3 light changes to get 1 block at rush hour.
There's a whole other end to downtown, let's hope somebody spreads the love our way. "
If only some retailers would look in the Old Bank District and Arts District where it does not already take 3 light changes to get 1 block at rush hour.
There's a whole other end to downtown, let's hope somebody spreads the love our way. "
Boramon wrote on Nov 24, 2009 8:36 PM:
" Target would rock DTLA. It would surely attract more people and energy to the much needed area! "
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