Business & Tech
WATCH: Tenants Losing Leases—Is New Whole Foods Market to Blame?
A number of business owners in the Aliso Village shopping center say they have not been able to renew their leases or have seen increased rents because of the new market that is opening on May 16.
Not everyone is excited about the new that is finally opening Wednesday at 23932 Aliso Creek Road.
In fact, some owners in the Aliso Village shopping center are a little bitter including Rodolfo Gonzalez, owner of , who has been at the location for seven years. He said he has been asked to leave by Shapell Property Management.
Gonzalez is one of several who was not able to renew his lease, and who will be shutting the doors to his business May 31.
Find out what's happening in Laguna Niguel-Dana Pointfor free with the latest updates from Patch.
“I’ve been here for seven years and when I asked if I could renew, they said no,” he said. “There was no reason and I have been going month-to-month for about three months now.”
Moving On
Find out what's happening in Laguna Niguel-Dana Pointfor free with the latest updates from Patch.
Gonzalez hopes to take over the lease of another restaurant in Mission Viejo because the owners are retiring, he said.
“I was paying $6,000 a month here,” he said. “It will be more like $2,500 when we move, and even though it may be a little slower over there, there will be a lot of things we can do, unlike here. There is a lot of potential.”
Gonzalez added that his next door neighbor in the center was a former dental office that moved out several months ago. The space has remained empty.
“They could not afford the new rent, so they also moved to Mission Viejo,” he said.
In the time that he has been in business at the center, Gonzalez said he has always "paid his rent on time" and "not asked for anything other than for a manager to come down and assess the place after a fire happened three years ago."
“I asked for a recommendation letter to give to a new landlord last week and I was told as a company policy they do not do that,” he said. “Actually, I am happy to be leaving.”
More Anger
Another tenant who has not been allowed to renew its lease is according to its co-owner Nolan Springer.
“We are also on a month-to-month lease and when we asked if we could renew, they said no,” he said
“We are basically in limbo, but I think we can read between the lines that they don’t want us here. We are already starting the prerequisites to look for another location.”
Springer said they have been at the location for 16 years and are “90 percent sure we are going to be asked to leave.”
He added that when they asked representatives at Shapell Property Management why they could not renew, they were given no answer.
“There is a rumor that there is going to be a breezeway and several stores will be knocked down to accommodate it,” he said. “But that sounds like a strange thing to build.”
Springer said while his customer base typically follows the business wherever they go, [since they had another location and moved a few years ago,] he really isn't worried about having to move.
“Our business is built on customer loyalty, so we know our customers will follow us,” he said. “But the Mexican restaurant and the that was here until last summer were both basically asked to leave, it’s just unfair.”
As reported by Patch in April, another tenant, Jimmy Graesser, has been in the center for 12 years and recently had his lease terminated. He will be moving into the former City Hall, at 27841 La Paz Road this month.
No Response
Shapell Property Management was contacted by Patch, but did not return phone calls. However, Whole Foods Market was more than eager to speak on the record.
“Whole Foods Market is thrilled to become part of the Laguna Niguel community. As with every store we open, our goal is to develop and foster good relationships with other businesses in the area, particularly those in the same shopping center. It is part of our company's core values to be good stewards in the communities in which we live and serve and that have been our approach in Laguna Niguel,” said Whole Foods spokesperson Hilary Maler.
She said Whole Foods was disappointed and surprised to hear that businesses in this center have apparently been notified that their leases are being terminated.
“Whole Foods Market had no knowledge of the lease statuses for any Aliso Viejo Village tenants nor were we privy to any plans by the landlord to take such actions. We are saddened to learn about the hardship this may cause the affected tenants,” she said.
“Whole Foods Market has a solid track record of thoughtfully and courteously entering new markets. This store brings more than 100 new jobs to the Laguna Niguel community and we are working with many in the Orange County community to support their businesses while bringing our customers the freshest and best quality products available. We intend be good neighbors and community partners here in Laguna Niguel while conducting business with integrity.”
