Riverside Sushi Cafe closing

[friedturkey]

Tijuana Flats will be replacing it.

[ben says]

Thanks for the heads up. Unfortunately, I don't care for Tijuana Flats. Eh, you know what they say though: any business is good business. I'll take them over an empty storefront any day.

[friedturkey]

Tijuana Flats Burrito Co. plans to open a 1,645-square-foot, 90-seat restaurant at Riverside Market Square by late summer.

The planned restaurant’s address is 2025 Riverside Ave., #204 â€" the current home to Sushi Café, one of the original tenants of the retail center anchored by Publix that opened in a decade ago.

Tijuana Flats marketing manager Brandy Blackwell confirmed the Central Florida-based chain’s plans for the space, writing in an email that she expects build-out of the restaurant to begin in June to allow for an opening in August or September.

Full article: http://jacksonville.com/opinion/blog/423471/gary-mills/2012-03-21/tijuana-flats-plans-restaurant-jacksonvilles-riverside

[Captain Zissou]

There are so many empty storefronts in town, why do these two restaurants have to fight over this one?? I like Tijuana Flats, but I like Sushi Cafe far more. 

I'm guessing higher rent was the culprit for the tenant change.

[fieldafm]

TJ's was looking at downtown... this is the location they are doing instead(can't blame them).

[simms3]

There are so many empty storefronts in town, why do these two restaurants have to fight over this one?? I like Tijuana Flats, but I like Sushi Cafe far more. 

I'm guessing higher rent was the culprit for the tenant change.

Many memories from Sushi Cafe.  I say it had nothing to do with rent and all to do with mixing up the tenant roster, getting somebody new for the neighborhood, creating a little buzz, and pulling in a tenant that has some credit and 70 locations.  Sushi Cafe probably could have paid any sort of market rent there, but haven't they worn their welcome thin by now?  How many sushi restaurants are there anyway?  Also, if the landlord ever expects to sell that place they are going to need more credit tenants.  A sushi place with one location and questionable managers (albeit good sushi) occupying the most visible endcap is not going to look good to any potential buyers.  A fresh Tijuana Flats lease will look much better.

[Jimmy]

Here's the link to the TU piece:  http://jacksonville.com/opinion/blog/423471/gary-mills/2012-03-21/tijuana-flats-plans-restaurant-jacksonvilles-riverside

I wonder if Sushi Cafe is moving.  I hope so.  I enjoy their food and I know many others who do, as well.

[ben says]

Interesting a place like Sushi Cafe would just "move" like this...like simms said, I can't imagine them not being able to match rent. What I disagree with simms about is a landlord wanting to "mix it up" and "keep it fresh." Money is money, can't see them caring one way or the other. After all, sushi cafe was popular as hell.

For all you sushi cafe fans: what's good here? Only been once or twice, my experiences were just OK. Maybe I was ordering the wrong thing. Would like to go back soon while it's still around!

[Marley Weinstein]

I LOVE Sushi Cafe...hate to see them go 

[jcjohnpaint]

Sushi Cafe is one of my favs.  I hope they re open somewhere else. 

[ben says]

I LOVE Sushi Cafe...hate to see them go 

What do you get there?

Sushi Cafe is one of my favs.  I hope they re open somewhere else. 

And you?

[simms3]

Interesting a place like Sushi Cafe would just "move" like this...like simms said, I can't imagine them not being able to match rent. What I disagree with simms about is a landlord wanting to "mix it up" and "keep it fresh." Money is money, can't see them caring one way or the other. After all, sushi cafe was popular as hell.

For all you sushi cafe fans: what's good here? Only been once or twice, my experiences were just OK. Maybe I was ordering the wrong thing. Would like to go back soon while it's still around!

Money is not just money.  In the event of a sale of this center, which is likely given that I can't imagine the current landlord holding it forever - I'm sure their loan matures sooner rather than later, an outside buyer is going to value cash flows from Tijuana Flats much more than they would value the same cash flows from Sushi Cafe.

Not only that, a little extra buzz and publicity and a new tenant lineup can increase foot traffic to the center, thereby increasing tenant sales, which will also be viewed favorably by a potential buyer and will result in increased sales proceeds in some way shape or form for the current landlord.

On top of that, centers with more national/regional and credit tenants have lowered bad debt expenses, thereby increasing forecast project level cash flow (which is good for the seller because he can sell it for more and good for the buyer because he collects more money and suffers from less slippage).

On top of that centers with more national/regional and credit tenants have lower vacancies, higher rents, and better rent growth during cycles.  Market leasing assumptions can be increased, thereby increasing cash flows over a 10-year hold, thereby helping the current landlord in a sale scenario and potentially also helping the next landlord.

Sorry, I do this for a living and I too often hear someone say a tenant left because of rent when that is hardly ever the case.  Obviously whatever happened is so much more complicated than what is being discussed here, but it's perpetually lazy for people to just assume that rent must have gotten too high -Retail Rents across 100% of markets in this country are still falling and are not what they were 1, 2, 3, and certainly not 4 years ago.  If rents are rising in Riverside submarket, they are probably going from $20 to $21 psf, on a simplified basis.  They aren't like Fifth Ave rents above 50th, which are going from $1,000 to $5,000 psf in one year (again, simplified example).

[ben says]

Interesting a place like Sushi Cafe would just "move" like this...like simms said, I can't imagine them not being able to match rent. What I disagree with simms about is a landlord wanting to "mix it up" and "keep it fresh." Money is money, can't see them caring one way or the other. After all, sushi cafe was popular as hell.

For all you sushi cafe fans: what's good here? Only been once or twice, my experiences were just OK. Maybe I was ordering the wrong thing. Would like to go back soon while it's still around!

Money is not just money.  In the event of a sale of this center, which is likely given that I can't imagine the current landlord holding it forever - I'm sure their loan matures sooner rather than later, an outside buyer is going to value cash flows from Tijuana Flats much more than they would value the same cash flows from Sushi Cafe.

Not only that, a little extra buzz and publicity and a new tenant lineup can increase foot traffic to the center, thereby increasing tenant sales, which will also be viewed favorably by a potential buyer and will result in increased sales proceeds in some way shape or form for the current landlord.

On top of that, centers with more national/regional and credit tenants have lowered bad debt expenses, thereby increasing forecast project level cash flow (which is good for the seller because he can sell it for more and good for the buyer because he collects more money and suffers from less slippage).

On top of that centers with more national/regional and credit tenants have lower vacancies, higher rents, and better rent growth during cycles.  Market leasing assumptions can be increased, thereby increasing cash flows over a 10-year hold, thereby helping the current landlord in a sale scenario and potentially also helping the next landlord.

Sorry, I do this for a living and I too often hear someone say a tenant left because of rent when that is hardly ever the case.  Obviously whatever happened is so much more complicated than what is being discussed here, but it's perpetually lazy for people to just assume that rent must have gotten too high -Retail Rents across 100% of markets in this country are still falling and are not what they were 1, 2, 3, and certainly not 4 years ago.  If rents are rising in Riverside submarket, they are probably going from $20 to $21 psf, on a simplified basis.  They aren't like Fifth Ave rents above 50th, which are going from $1,000 to $5,000 psf in one year (again, simplified example).

I didn't assume it was a rent issue, I assumed it was a lazy "as long as the tenants are paying" type of landlord (which I know plenty of). That being said, what you say makes sense. Thanks for the info

[Captain Zissou]

Sorry, I do this for a living and I too often hear someone say a tenant left because of rent when that is hardly ever the case.  Obviously whatever happened is so much more complicated than what is being discussed here, but it's perpetually lazy for people to just assume that rent must have gotten too high -Retail Rents across 100% of markets in this country are still falling and are not what they were 1, 2, 3, and certainly not 4 years ago.  If rents are rising in Riverside submarket, they are probably going from $20 to $21 psf, on a simplified basis.  They aren't like Fifth Ave rents above 50th, which are going from $1,000 to $5,000 psf in one year (again, simplified example).

You're right.  After further thought, I agree that Sushi Cafe would be able to pay any rent for that space because they are killing it most nights of the week.  It would be better to see a regional chain on a rent roll.  Sorry, after hearing Ron Chamblin's account of what happened to Magnificat, I just have rent increases on the brain.

There are 1 or 2 open storefronts in that center.  What I would love to see is Quizno's move out of their space and into one of the middle spaces and have Sushi Cafe take over their space.  Quizno's has a huge patio that never gets utilized.  It's not likely that the tenants will all shuffle around, but I can dream can't I?  Given that Sushi Cafe has been so successful, I do hope they move to another location nearby. 

[simms3]

I can't remember who the landlord is - I once knew - and if I remember correctly it is a national owner, perhaps a REIT.  The developers are pretty big - Sembler, and the current owners aren't your typical Jacksonville unwashed landlord who can't think past simplified and watered down basic concepts of real estate.  It's someone who keeps a good model on this center and has a good asset management team, that much I remember.