A private investment firm managing more than $1 billion in capital is poised to occupy a sparkling new development on upper Pier Avenue, which was originally slated for a mixed use of offices, stores and a small eatery.
The new development consists of two buildings straddling Loma Avenue on the south side of the newly remade avenue, where no business has existed since 2004, when White & Day Mortuary moved out.
The original plan for the development called for retail businesses on the ground floors, with offices above, and a restaurant, which in time was ditched in favor of a snack shop or coffee shop. But the downturned retail economy crushed the mixed-use plan.
“We had some initial retail interest, however, as the economy worsened the retail sector was the hardest hit. Many retailers jumped out of the market altogether. It was not a question of price because the [prospective] tenants just stopped coming,” wrote marketing agent Colliers International in a letter to city planning officials.
As interest from merchants plummeted, the El Segundo-based investment firm Marlin Equity Partners bought the development from Al Marco, and plans to move about 25 employees into offices there.
“Please know that the previous owners made every attempt to lease the building to retail users. The economy crushed the market and continues to do so today. The retail market is off 40 to 60 percent throughout Southern California,” Colliers wrote.
The letter held little hope of a quick recovery.
“We have seen some signs of life, but it will be a long time before we see things the way they were in 2006 and 2007,” Colliers wrote. “The office and industrial markets are really what is driving the recovery currently, and even that is slow.”
The city’s Planning Commission was scheduled to take up the matter this week, discussing a staff recommendation to approve a new parking plan for the development, which was prompted by the change from a mixed use complex to all offices.
Marlin Equity wrote to city officials saying its daytime use of the Pier Avenue offices would increase trade to other area businesses during daylight hours, a goal long lauded by City Council members. ER
Since 2005, Marlin Equity has acquired more than 40 businesses across a variety of industries, according to its website. ER
