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Newmark Grubb Knight Frank (NGKF) has completed two new leases with Colorado Springs, CO-based Phenix Salon Suites, the fastest growing ‘Salon Suites’ concept in the United States. The leases total 13,605 square feet and are located in San Diego submarkets of Rancho Bernardo and Vista. Randee Stratton, Managing Director with NGKF in the firm’s La Jolla office, completed the leases on behalf of Phenix.
Following are details for each lease:
Rancho Bernardo: Phenix signed a 10-year plus options, 8,603-square-foot lease located at 15731 Bernardo Heights Parkway, Suites 104 and 105, within Bernardo Heights Plaza. The landlord is an entity of ROIC, a real estate investment trust (REIT). The space is currently undergoing extensive tenant improvements and opening is anticipated for mid-August 2015.
The site was originally a Ralphs grocery store that vacated. Sprouts Farmers Market took a portion several years ago and some additional shop space was built out in the front of the remaining portion of the building leaving a long space that extended to the back of the building available that wasn’t usable for most traditional retailers. Stratton negotiated a creative lease for Phenix to make use of that available space but at the same time allowing great exposure and storefront visibility for her client.
“I had been seeking opportunities on behalf of Phenix in the Rancho Bernardo market for three years, but with very low retail vacancies and high asking rents, finding ideal space was a challenge,” said Stratton. “This space was a perfect situation for Phenix as well as for ROIC by adding to its income stream with square footage that would have likely remained vacant otherwise.”
Vista: Phenix signed a 10-year plus options, 5,002-square-foot lease located at 1605 S. Melrose Drive, Suites B and C. The landlord is an entity of Kimco Realty, a REIT. Extensive tenant improvements are anticipated to commence mid-August this year, with an opening expected mid-November 2015. Other tenants in the center include Albertson’s, CVS, Dollar Tree and Skybound Coffee + Dessert Lounge (Stratton represented Skybound in its new lease as well which replaced Starbucks.)
Over the last three years, Stratton has worked with Phenix to expand its presence in key California markets and has either opened, is under contract, or is under construction on a total of 34 locations with a total lease consideration exceeding $52 million and totaling approximately 180,000 square feet. Other San Diego locations include Encinitas - the first location in California - as well as Downtown La Jolla, and Downtown San Diego.
“Many of these locations are not “cookie cutter” spaces,” she adds. “Being flexible and creative with space options and square footage has been an overriding theme as I reach out to landlords.”
“Randee was among our first brokers in the country. She immediately understood the Phenix concept and began producing top-quality sites for us. Her enthusiastic representation has been instrumental in the growth of our brand in California,” said Robert Aertker, National Director of Real Estate, Phenix Salon Suites.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.