TUESDAY, AUGUST 26, 2008

Hop, skip and a jump

by Maureen Wilkey
Chicago

What a difference three blocks makes.

That's the distance the Lakeview location of American Apparel will move this winter when it leaves the storefront at 3126 North Broadway Avenue for its new location at 929 West Belmont Avenue. The retailer is known for its clean-line advertising and simple yet trendy clothes. The new site, which formerly housed an Ann Sather restaurant, gives the merchant a closer match to the demographic they normally market to, says P. Scott Janos, an associate with NAI Hiffman who represented American Apparel in the deal.

"Basically, they thought that by moving that store just a couple of blocks west to a little bit edgier neighborhood, they could do a little bit more business," Janos says. "The best performing American Apparel store in the market is on Milwaukee Avenue, and the demographic a little further west matches that demographic better."

While the square footage of the store will remain close to the same, the new location will have a lot more street frontage, giving the store a longer street line as well as more daylighting inside for customers looking at clothes. It's also very close to a lot of foot traffic coming off of the Belmont EL stop, Janos says.

"They're going to increase the window wall and add their signature white box logo," Janos says. "The high ceiling is also going to look great in the store."

In the last 18 months, the 900 block of West Belmont has started to take off, with Jamba Juice and Potbelly joining the block. When Joseph A. Freed & Associates purchased the building at 929 West Belmont, they were hoping to get Panera to lease the space, but never landed the deal. The new restaurants add a nice gentrification to the block, Janos says, without taking away the character of the neighborhood.

"It's a little more 24 hour-ish than the other block they were on," he says.

When American Apparel moves to Belmont, it will join a few other fashion boutiques on the block and leave the North Broadway area about 1 percent more vacant than it has been in recent years, Janos says. He will start marketing the old American Apparel site this month. While West Belmont is starting to take off for clothing retailers, the Broadway corridor is doing well with restaurants and could use some new life, Janos says.

"That area isn't dying, but it is taking a bit of a hit," he says.
Michael Meksto, senior vice president, and Janos with NAI Hiffman, along with their colleague Brian Luft with NAI Capital in Los Angeles, California represented American Apparel. Jake Daab represented Joseph Freed. The lease is for a 10-year term and American Apparel should open in the location around January 1, 2009.

Lee & Associates negotiates lease with Gold's Gym Thompson Thrift negotiates retail lease Proposed Rochester, Minn., development withdraws variance request, moves forward Romeo Commons on the block for $17.25M Brinkmann Constructors completes first tier of 550,000 SF Shopping Center David Barton Gym trying to get out of Block 37 lease Neiman Marcus renews Minneapolis lease Mid-America secures five leases for Chicago retail center Herbergs extends Marktplatz Mall lease Seldin Co. negotiates retail lease