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Tenants want more ads, outdoor signs and cheaper leases.


Some retailers and restaurateurs in Mission Valley's Hazard Center shopping mall say their landlord hasn't met promises to advertise and install signs. They want better exposure and lower rates or they want out of their leases.

Though its office space is 86 percent occupied, its retail space is only 71 percent full. Tenants say they were told the $120 million office/retail/hotel development eventually would have 850,000 square feet of offices to supply customers. But so far, only 292,000 square feet have been built. Consequently, the development doesn't have enough users to provide customers for all of the tenants.

"The owners are doing nothing. We're on our own," said Berge Matossian, owner of Cartel cartel (kärtĕl`), national or international organization of manufacturers or traders allied by agreement to fix prices, limit supply, divide markets, or to fix quotas for sales, manufacture, or division of profits among the member firms.  Jewelers. He operated jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion.

The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring.
 stores in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  for 15 years before coming to San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay.  in 1990.

"Neither Hazard nor Compas Management is helping bring in customers," Matossian said. "If something isn't changed, four or five retailers (in Hazard Center) won't make it into next year."

Some tenants say Hazard, in addition to providing poor promotional efforts, leased too much space to restaurants. They make up 15 of Hazard Center's 28 existing tenants. The disgruntled dis·grun·tle  
tr.v. dis·grun·tled, dis·grun·tling, dis·grun·tles
To make discontented.



[dis- + gruntle, to grumble (from Middle English gruntelen; see
 retailers claim nobody comes into their shops until the workers in the neighboring neigh·bor  
n.
1. One who lives near or next to another.

2. A person, place, or thing adjacent to or located near another.

3. A fellow human.

4. Used as a form of familiar address.

v.
 292,000-square-foot office building start breaking for lunch at 11:30 a.m.

On top of the advertising and signage problems, copies of the terms of the leases recorded with Crow-Hazard partnership documents show that base lease rates in the center in 1990 ranged from $1.50 to $3.48 per square foot per month. Older, larger retail centers often show similarly wide ranges of lease rates because many were signed around 15 years ago, when rent was much cheaper. But it is uncommon to see such a wide range of rental rates in newer centers.

Snyder-Langston Builders started constructing Hazard Center in 1988 for developers Crow-Hazard Associates, a partnership of R.E. Hazard Contracting Co. and Trammell Crow F. Trammell Crow (born June 11, 1914, in Dallas, Texas) is an American property developer who created several famous projects, including Dallas Market Center, Peachtree Center (Atlanta, Georgia), and San Francisco's Embarcadero Center.  Co. Finished in 1990, the mixed-use center covers 42 acres at the southeast corner of Friars Road and state Route 163.

Trammell Crow was in charge of leasing the 135,000-square-foot retail portion of the center and the office space from the early stages of development. Compas Management and CB Commercial took over leasing for Hazard Center in June.

Steve Williams Steve Williams may refer to:
  • Steve Williams (jazz drummer), Shirley Horn's accompanist and band leader
  • Steve Williams (rock drummer), drummer for heavy metal group Budgie
  • Steve Williams (wrestler), an American professional wrestler
, former San Diego Trammell Crow senior partner, and Trammell Crow Co. voluntarily signed their portion of the development over to Hazard at risk; liable to suffer damage or loss.

See also: Hazard
 in April. Williams wouldn't discuss the particulars, but the development agreement states if any of the partners fell behind in their portion of the payments, the delinquent partners would turn their share over to the remaining partners.

Williams also declined to comment on the leasing situation at Hazard Center.

In June, Trammell Crow's leasing staff was replaced by CB Commercial and Compas, a division of Equitable Life Equitable Life may refer to:
  • The Equitable Life Assurance Society, life insurance company in the United Kingdom
  • AXA Equitable Life Insurance Company, formerly the The Equitable Life Assurance Society of the United States
 Leasing. They are seeking users for Hazard Center's 39,000 square feet of vacant retail space.

Management changes may help some tenants' future sales. For others, the changes come too late. The Litehouse restaurant opened in July 1990. It already has gone out of business and is suing the Crow-Hazard partnership for $250,000.

James H. Miller, attorney for The Litehouse, claims that Hazard Center set excessive lease rates, that Crow-Hazard didn't promote the center as promised and that too much space was leased to restaurants.

Trammell Crow representatives told Miller 90 percent of the center was under lease contract in July 1990 when actually only 70 percent was leased, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the suit.

Former San Diego Sockers player George Katakalidis, owner of Greek To Go in the Hazard Center food court, said Hazard is not honoring Trammell Crow's promises to tenants.

"The center has leased to too many restaurants. Some of the tenants have been royally screwed," Katakalidis said.

Katakalidis said that besides failing to install enough signs, neither Trammell Crow nor Hazard built a wind barrier to shield the dining area in the food court.

"I'm doing all right, but I should have twice the business I do. I'm reluctant to talk about the situation because I don't want to "I Don't Want To"/"I Love Me Some Him" is the third single released from Toni Braxton's multiplatinum second album, Secrets. Written and produced by R. Kelly, this ballad describes the agony of a break-up.  discourage people from coming to Hazard Center. I'm damned if I do, and damned if I don't," Katakalidis said.

He said that if Hazard doesn't make lease concessions and improve access and exposure, smaller restaurants will fail.

"They need the traffic that is generated by non-food retailers like electronics and clothing stores. The big restaurants do all right because customers come to Hazard Center specifically for them. The small restaurants won't do well unless the center has something besides the Mann 7 Theatres to draw customers," Katakalidis said.

Some of Hazard Center's larger restaurants say they are doing well in light of the recession. Trophy's Sports Bar manager Dave McGee said his restaurant and bar is holding its own. Carlos Murphy's general manager Mike Auger auger (ô`gər): see drill.
auger

Tool (or bit) used with a carpenter's brace for drilling holes, usually in wood. It looks like a corkscrew and produces extremely clean holes, almost regardless of how large the bit is.
 said Compas Management is doing a better job with advertising and maintenance, but he is still waiting for the owners to put up two more marquees.

Katakalidis said he also fears subsequent Hazard Center office buildings won't be constructed. Plans call for two more office towers totaling 558,000 square feet next to Hazard Center's first tower. But the recession has caused an indefinite INDEFINITE. That which is undefined; uncertain.

INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure.
     2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those
 delay of construction for the two office towers.

Dave Randal, R.E. Hazard Contracting's executive vice president, said San Diego is facing one of the toughest economic times in its history. He denies he has instituted a "get tough" policy since turning over leasing duties to CB Commercial and Compas Management.

Randal, while sympathetic with tenants about the soft economy, doesn't think their complaints are valid.

"None of the tenants at Hazard Center can say that Compas hasn't improved leasing and management of the retail portion of the center," Randal said. "No matter where you go, you'll find disgruntled tenants. We've never violated vi·o·late  
tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates
1. To break or disregard (a law or promise, for example).

2. To assault (a person) sexually.

3.
 the limit on retail leasing that is set forth in our specific special-use permit," Randal said.
COPYRIGHT 1991 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Title Annotation:retailers and restaurateurs in Mission Valley's Hazard Center shopping mall
Author:Hathcock, Jim
Publication:San Diego Business Journal
Date:Dec 9, 1991
Words:994
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