570 W 4th Street, San Bernardino
Hi BP,
We just purchased a mixed-use building with 7 units of retail on the ground floor (13,000 sq. ft.), office above (13,000 sq. ft.) and a really cool basement (8,000 sq. ft.).
We bought the building vacant except for one tenant, a nail salon. The property owner let the building decline for many years, but the location is prime. Next to the California Theater and Regal Movie Theater.
In your experience, what is the best way to attract a restaurant tenant to a property like this? Have you had any success cold calling restaurants in the area who are looking to expand? What methods work for you?
I feel having a restaurant tenant will help to fill out the rest of the space pretty quickly if the food is good.
Here is a link to the property. Open to all feedback: https://www.loopnet.com/Listing/570-W-4th-St-San-Bernardino-...
Thank you for all of your insight! - David Friedman
#2 Commercial Real Estate Investing Contributor
- Cincinnati, OH
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#2 Commercial Real Estate Investing Contributor
- Cincinnati, OH
Success for restaurants: lots of TI budget, low rents, and calling retail brokers.
If you are going to cold call, make sure you know your void analysis. Neighboring concept's sale volume, foot traffic, parking ratios, demand drivers, etc. Since you are near a theater, I would try to find the volume of that theater. Nothing like being able to sell the dream of dinner and a movie to your potential tenants, to help them see the need.
@David Friedman there are generally a few brokerages in each market that heavily deal in the restaurant space, it would likely be good to get on their radar, and to @Evan Polaski 's point, having your data/features on hand to "pitch" the site is likely a good call.
Other items to note would be just to understand if the current configurations of the retail spaces could be reconfigured for a restaurant, things like grease traps, larger water lines, patio requirements may all be things they are looking for.
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Real Estate Agent OHIO (#2021002058)
- 614-362-2231
- [email protected]
Thats a cool building. I wish I had more to offer, but my advice would be see what restaurants have good foot traffic, but are maybe suboptimal location, and then offer incentives to try and get them in. Shoot for something that the stereotypical customer of the theater(s) would enjoy for before/after a show. IE, if I was located next to a proper theater (Think Hamilton, classic shows, Orchestras) I would want something like a speakeasy, with a slightly higher price point.
Then, try and make reciprocal deals with the theater/etc to add value.
Either way, best of luck!
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Lender North Carolina (#2264646)
- The One Brokerage
- [email protected]
Thank you
For all of your insightful answers! I will work on a value-add proposition and start cold-calling tenants/brokers who may be ready to jump on board.
Good luck!
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Lender North Carolina (#2264646)
- The One Brokerage
- [email protected]
Some good suggestions already above. I like that property.
Now that you own THAT building, at THAT location, it might be time to do the "networking fluff" associated with being a "pillar of the local community." Chamber of commerce and all that jazz. You will have a hard time NOT finding folks to fill the building if you start showing up to those sorts of things.
Nice! I would list it and call up commercial brokers instead, they know the tenants and may even have someone already looking for a space.
Quote from @Chris Mason:Genius. I'm already a member of our local chamber. Maybe I should get my money's worth.. I'll show up to their next mixer! With flyers! Thank you!
Some good suggestions already above. I like that property.
Now that you own THAT building, at THAT location, it might be time to do the "networking fluff" associated with being a "pillar of the local community." Chamber of commerce and all that jazz. You will have a hard time NOT finding folks to fill the building if you start showing up to those sorts of things.
Quote from @David Friedman:
Quote from @Chris Mason:Genius. I'm already a member of our local chamber. Maybe I should get my money's worth.. I'll show up to their next mixer! With flyers! Thank you!
Some good suggestions already above. I like that property.
Now that you own THAT building, at THAT location, it might be time to do the "networking fluff" associated with being a "pillar of the local community." Chamber of commerce and all that jazz. You will have a hard time NOT finding folks to fill the building if you start showing up to those sorts of things.
Good, hope it works, I need you to fill it up and stabilize it for me to be able to slap permanent debt on it, when you're ready! 3 months of rent receipt from 7 out of 7 should do the trick if you want max leverage, 5 out of 7 would probably do the trick for low LTV as long as one of those 5 is the big unit. Chat with you in.... 4-6 months!
@David Friedman in my experience if the location is strong and you have the property properly listed and marketed, tenants will easily find you. Now if there is a specific brand you want at your property, especially if they are a larger or national credit type tenant, they have real estate brokers and criteria readily available on their website or through Costar that you can reach out to and market your vacancies to. Pretty easy process if you know what they need and you can provide it. Do you research first though, as you can find their criteria and proximity to other stores and competition to vet your space against. If they are already in close proximity with an established presence, there would be little incentive for them to relocate unless your property is a substantial upgrade. I've rarely found this to be the case though, as national brands will seek out those locations in advance and purchase directly for a later sale-leaseback if it's truly a superior to location to one they already have nearby. Good luck and send me a connection request if you want to discuss this more.
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Broker Washington (#24843)
- NAI Horizon
All great suggestions. One other item I would address is BRANDING. Make sure you have signage for your building and make it unique. I found that many owners neglect monument signs and utilizing the walls of their properties as advertising.
@David Friedman I love this.
You have huge parking options.
You have two arts and cultural destinations there.
I think your idea of attracting a restaurant is a great idea to help with the place making of that corner. That being said, I'm wondering if you attracted an operator at the far corner near F and 4th street would be most ideal. The corner is the highest profile space and makes that building look less vacant (if you filled it), plus theatre goers would have to walk by all the other store fronts in order to get to the performing arts theatre and regal so that would add foot traffic. Plus you have a big honking parking lot which would be a great benefit to have people come after hours, get a drink and bite before going to a show.
That being said. In regard to marketing, you probably have to go guerilla on this one and do facebook marketplace. A broker is not going to be as motivated as you are to lease a 1600 sqft space or a 3200 sqft space if you combine two suites together. It's a little off the beaten path so it's not going to be a fit for a national retailer. I'm looking at traffic count around 12,000 cars a day there. Those types of users are going to want to be around West 2nd street.
Some people here were talking about monument signs etc. Screw that. Get a gorgeous mural put on the F street side of the building. Might cost you $5k to $10k but it will help you lease that space to a restaurant. I've used this tactic several times.
I wish you the best. May the odds be ever in your favor. Cheers!
Quote from @Sohail Bas:
All great suggestions. One other item I would address is BRANDING. Make sure you have signage for your building and make it unique. I found that many owners neglect monument signs and utilizing the walls of their properties as advertising.
I've been thinking of a name for the center. Previous owners just had it as 4th Street Plaza which is a little bland. Trying to think of something catchier, but haven't figured that out yet. I think it will come to me soon :) I will create a simple website for it as well.
Quote from @Matthew Drouin:
@David Friedman I love this.
You have huge parking options.
You have two arts and cultural destinations there.
I think your idea of attracting a restaurant is a great idea to help with the place making of that corner. That being said, I'm wondering if you attracted an operator at the far corner near F and 4th street would be most ideal. The corner is the highest profile space and makes that building look less vacant (if you filled it), plus theatre goers would have to walk by all the other store fronts in order to get to the performing arts theatre and regal so that would add foot traffic. Plus you have a big honking parking lot which would be a great benefit to have people come after hours, get a drink and bite before going to a show.
That being said. In regard to marketing, you probably have to go guerilla on this one and do facebook marketplace. A broker is not going to be as motivated as you are to lease a 1600 sqft space or a 3200 sqft space if you combine two suites together. It's a little off the beaten path so it's not going to be a fit for a national retailer. I'm looking at traffic count around 12,000 cars a day there. Those types of users are going to want to be around West 2nd street.
Some people here were talking about monument signs etc. Screw that. Get a gorgeous mural put on the F street side of the building. Might cost you $5k to $10k but it will help you lease that space to a restaurant. I've used this tactic several times.
I wish you the best. May the odds be ever in your favor. Cheers!
I agree. The parking and being next to not one, but two theaters, is the best draw. Tons of rich old people and young kids watching shows at night.
Maybe this restaurant needs a coffee shop/cafe and a restaurant. That would fill in the daytime and nighttime traffic and keep the building busy which would attract higher paying tenants for all of the other suites.
A mural is a part of the plan. Trying to figure out what the name the center first and then we will do a rebrand of the exterior of the building. I'll make sure to post back in this thread once we have some ideas hashed out!
Thank you for your ideas. They are great.
Quote from @David Friedman:Building names:
Quote from @Sohail Bas:
All great suggestions. One other item I would address is BRANDING. Make sure you have signage for your building and make it unique. I found that many owners neglect monument signs and utilizing the walls of their properties as advertising.
I've been thinking of a name for the center. Previous owners just had it as 4th Street Plaza which is a little bland. Trying to think of something catchier, but haven't figured that out yet. I think it will come to me soon :) I will create a simple website for it as well.
The Plaza on 4th.
The Hub on 4th.
570.
Thrive @ 570
The Vibe at 4th
The Pulse