Worthwhile Wait for Tenant and Landlord
Posted on 17. Sep, 2010 by Thomas Chan in Uncategorized
Click the photos for captions.
The new small business moving into the shuttered storefronts on Putnam and Grand Avenues took years to arrive. But the wait was worth for both the landlords and the tenant – each with a unique circumstance.
Saturday morning, the Greene Hill Food Co-op publicly signed a lease for a storefront in Clinton Hill, Brooklyn.
“We see great potential in this location,” said the co-op’s membership in a press release.
For the landlord, the Collymore family, it took seven years for the Greene Hill to arrive. The spaces at 18-22 Putnam Avenue used to be a laundromat and a cafe. But the two businesses, also owned by the Collymores, were running at a loss. They closed the two shops and simply held on to the property ever since, despite a yearly tax bill of about $14,000, said Renee Collymore.
As for the tenants, they organized, met and planned for more than two years. But they had a chicken-or-egg problem, as Outreach Coordinator Anna Muesig described it.
The co-op had to raise about $400,000 in member equity to get started. That meant recruiting a lot of potential, dues-paying members even before a grand opening. But many were reluctant to join in before knowing where the co-op would open its doors, Muessig said.
By June 2010, despite having by-laws, regular meetings and a robust website, the co-op was still just an idea to many would-be members. And Collymore was running for office.
The timing and the match were just right. Greene Hill needed an affordable space in the neighborhood. And the Collymores, excited at the thought of a co-op moving into their building, were about to get tenants and headlines.
The Collymore family offered the 2,700 square foot space for $2500 per month – less than $10 per square foot while other landlords were offering $25 to $33 dollars per square foot. In turn, Greene Hill’s membership overwhelming voted to move in.
“We’ve given them the best break anyone would get because of the value of the services that will come to the community,” said Renee Collymore by phone.
(Collymore lost the election for female state district leader by about 650 votes. But she was in good spirits having beat expectations, winning accolades from local elected officials.)
Some of the lease terms are still being negotiated, said Collymore, and will be finalized in a separate legal document. But for the moment, the lease includes a five-year term, with the right of first refusal for a renewal, said Collymore. And the rent is set to rise with inflation, she said.
“For the last couple months, it seems there’s a new business every couple weeks,” said Phillip Kellogg, who manages the local business improvement district. “It’s a very exciting time.”
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