The leasing agent reports that there have been no firm offers on the former Smith’s Food and Drug store at 535 Central Ave. in the three years it has been vacant in the Mari Mac Plaza shopping center. Photo by Carol A. Clark/ladailypost.com
The former Smith’s Food and Drug store at 535 Central Ave., has been available for lease for three years. Photo by Carol A. Clark/ladailypost.com
The former Smith’s Food and Drug store at 535 Central Ave. in the Mari Mac Plaza shopping center is like a blank canvas. The 43,748 square feet of commercial space stands empty; its former identity as a grocery store scrubbed away. The site could be anything and many people have chimed in with their thoughts about what could potentially be the building’s new identity. The problem is, after being vacant for about three years, potential is all the building offers Los Alamos.
For at least the past year, the building has been marketed as a leased property. The County Assessor valued the entire Mari Mac Plaza shopping center at $6.6 million and the asking rent rate for the vacant space is $5 per square foot.
Director of Keller Williams Commercial Realty Tai Bixby, who is the broker for the property, said, “We have received a number of inquiries from national and regional developers to purchase the shopping center but we have not yet received any offers.”
He added, “While we receive inquiries from many prospective tenants, Kroger will not allow tenants that compete with Smiths.”
According to the marketing flyer for the property, there can not be a drug store, food store, gas station, night club or disco.
Bixby added there are actually two spaces in the Mari Mac Plaza available for lease: the former Smith’s building and the former site of the Blue Window Bistro at 813 Central Ave.
Finding the right tenant for the former Smith’s building is a challenge. Bixby said the large size of the vacant space and the relatively small population of Los Alamos is a challenge for prospective tenants.
Still, the town offers advantages. It has a relatively high income and it doesn’t have a lot of retail services, Bixby said. He said that in the absence of other retailers a good use for the space would be as office or multi-family housing.
As far as a landlord, Kroger has been following the rules, Los Alamos County Economic Development Administrator Joan Ahlers said. She noted Kroger was cited by the County for code violations but the violations, which included peeling paint, the placement of the old Smith’s sign and weeds, have been addressed.
“They’re doing what they’re supposed to do as building owners in that they have corrected the violations,” Ahlers said. Still, having a giant empty building adding to Los Alamos’ collection of vacant buildings proves to be an obstacle for the town, which is striving to develop its economy and bring in new residents as well as visitors.
“It’s really challenging,” Ahlers said. “It’s difficult to plead your case.”
She pointed out with several vacant buildings including the Hilltop Hotel, its gas station and the grocery store makes it a difficult sell for a retail or restaurant business to invest money in the town.
On the other hand, the new Smith’s Marketplace just across the street from Mari Mac has done a fair job bringing tenants to the plaza. Ahlers said it had a slow start but once McDonald’s relocated to the new shopping plaza, spaces started to fill up. She said there are still three pad sites that are waiting to be developed.
Others feel Kroger needs to step it up. Vice Council Chair Susan O’Leary said, “Given the tremendous success Kroger has experienced at its new Smith’s Marketplace, and the support it has received from the Los Alamos community, I find it unacceptable that Kroger has left its old property in such derelict condition; especially given its location and footprint in our downtown.”
She added, “It’s fair to say that this property has a significant negative impact on the look and vibrancy of our downtown area. Given the limited land available for development in our town, the Kroger property is material to our future economic prosperity. I have to think the Kroger people want to be good partners to our community. The best way for them to show their support is to sell this property or redevelop it into housing or contemporary commercial space. I strongly urge the County to take whatever action is necessary to encourage Kroger to address this issue in the short term.”
Councilor James Chrobocinski said he also believes Kroger needs to be more aggressive with finding tenants for its buildings.
“Smith’s has a responsibility to the community to get these buildings occupied,” he said.
Chrobocinski pointed out that the community helped Kroger get a good deal on the land for its Smith’s Marketplace; therefore, “They owe it to us to not let these buildings be a blight to the community.”
The community needs Kroger to be more aggressive, he said, adding it isn’t acceptable to have these buildings sitting vacant for so long.
Ahlers said Kroger is aware its building cannot go on being vacant. “They are aware that they need to do something with this site,” she said.
Calls to Kroger for comment were not immediately returned.
Bixby said with Los Alamos National Laboratory increasing its hiring, the time may be right for leasing the building.
“With the fact that LANL is staffing up, I think it will be good … to find a way to bring some type of office (business) to this building,” he said. “I think … Los Alamos has a bright future for the next five to 10 years.”