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Thursday, Mar 28, 2024

Anchor Grocery Store Pulling Out of NoHo Commons

Redevelopment of the NoHo Arts District in North Hollywood just hit a bump in the road. Upscale grocer, HOWS Markets, is closing down its retail storefront located at 5300 Lankershim. The company, which has four other locations scattered throughout the Los Angeles area, was anchor tenant for the NoHo Commons retail center. It currently occupies 32,000 square feet of space and opened its doors in May 2007. “It’s unfortunate because HOWS is a great company and very community oriented,” said Eric Reuveni, president and CEO of Los Angeles Community Real Estate Group and retail broker for the development. “I think the company’s decision to close has to do with certain segments of the grocery business having issues, and the economy,” he added. The company did not fulfill its original lease agreement. HOWS partner and owner, Mark Oerum, told the website LAist the store was not doing the sales it needed. The company recently announced the closure to employees and will take a few months to move out. It is focusing energy on its four other stores. Other NoHo Commons tenants include: Wells Fargo; Cold Stone Creamery; The Coffee Bean & Tea Leaf; T-Mobile; a sports bar; drug store; and a Greek café, among others. Reuveni said the space is large enough to accommodate anchor retailers such as Trader Joe’s, and it can be split. “There are myriad stores that could do well in the space,” said Reuveni, “It’s a young, hip and mobile demographic.” Lack of signage is one issue that may have compounded HOWS’ slow sales, he said. The original developer required the grocer to use stainless steel letters that were back-lit. But the lack of luminescence made the letters hard to see. Reuveni said building owners are talking with the city to improve the signage issue for future tenants. NoHo Commons is a mixed-use development located at Lankershim Blvd. and Chandler Blvd. near the North Hollywood subway station. It includes retail, residential, office, entertainment and parking space. Millions of dollars in public subsidies and loans have gone into the project.

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