I’m obsessed with markets. Growing up in Asia, I have fond memory of going to the markets with my mom. I’m sure she just needed the extra set of hands to carry stuff, but I knew if I behaved (or begged hard enough) there’s probably a treat in it for me. As I grew up and fell in love with traveling, markets often became a highlight of a trip. In one convenient location, one can sample and explore the best and freshest products and produces. Time and time again I fell for the allure of discovery, let my eyes, nose, and mouth take me down the rabbit hole.
I remember the first time I went to La Boqueria in Barcelona, before it was trampled by tourists, checking out the variety of fruit, candy, nuts, and the seafood section in the middle with local catch of the day. I’d stop by a vendor for a new batch of croquetas here, grab an espresso from a bar or my favorite stall Pinotxo for some razor clams straight from the market there, before leaving with small precious order of jamon Iberico to go. It was a feast for the five senses.
Then there was Borough Market in London, the Grand Bazaar in Istanbul, Mercado de San Miguel in Madrid, and of course who can forget about Tsukiji in Tokyo with some of the best seafood in the world.
A little over two years ago, we came across this building on a big empty lot in Glendora. Immediately we thought about the possibility of re-developing it into a market or a food hall. I didn’t know exactly how it would work 100% but I was determined to figure out how. If it wasn’t feasible at least I knew I can wait for the zone change already initiated by the city and do residential development or resale it.
Little did I know this project would be the biggest testament of all of my business skills—from building my financial pro forma and valuation of the project, networking with other food hall operators or professionals to refine said pro forma, legal work in drafting leases or partnership agreements, pitching and selling potential tenants on the vision, gathering feedback from the public and tenants to validate the idea, and marketing the final product to the end customers and all the stakeholders in the development process, I did it all. Fortunately, I didn’t have to do it all by myself. A friend of mine’s brother had been with big construction companies before decided to go solo.
The first thing we put together was a rough pro forma to see if the project has a chance in hell to be profitable. Some of our numbers have a pretty wide confidence interval, for example the construction costs turn out to be higher than what we estimated but our rent also ended up higher. Next we interviewed a few architects before deciding on Kluger Architects. Of all the ones we met with, Chuck’s experience and designs fitted best with what we had in mind. With some rough site plans and renderings we move on to finding the right broker to help us lease out the building. We went with one that initially we felt hustled and knows how to adjust and pivot to market feedback to target the right tenants. It took a while, but after it finally looks like we’ll be able to land our anchor tenant Smog City Brewing, we began to bid out all the different engineering and design components.
The process hasn’t been without setbacks, but I try to think of them as random events in the universe and not assign too much emotional values to them. Sometimes things work out in our favor as well. Oh, tenant negotiation fell through? Dirt off your shoulder. Structural engineer report we don’t have to shotcrete the walls potentially saving us a boat load of money? Great, on to the next one. The city says we might not be able to get a permit for beer? Let’s see what we can do and work it out. Literally in the real estate business you eat problems for breakfast, but nothing is ever really catastrophic end of the world level. It does test you, I’m not going to lie. There definitely have been days where in my head I’m saying F it, let’s just forget it. There are also days that make you feel like a rockstar, usually when I hear positive feedback from the public or tenants. Through it all, it’s the connections and relationships I have formed that I find to be the most rewarding. Hearing how someone made the leap to start their own business, and now scaling it to their third or fourth location is just down right inspiring as well. They’re the ones that keeps me going on the tough days. I want to help these purveyors grow their business and deliver on what I promised them.
Next Tuesday, we are on the agenda for the Planning Commission’s public hearing. I’ve been to a few in the past, just as curious observer, never as one that’s presenting a proposed project. All the hard work has been leading up to this moment. I try not to comment on ongoing project that leads to adverse or unintended effects, but everything sounds like we’ll get the green light. But who knows, maybe there will be so many complaints that the city changes its view. I’ve actually gone door to door to talk to the neighbors. Most are receptive, some are kind of indifferent or clueless what I’m talking about, and there are a small 10% or so that are legitimately concerned about the fact there will be beer and adequate parking. Either way, we’ll roll w/ the punches just like we always do.
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