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The Grove
Introduction
It
is located in Los Angeles and constitutes the ultimate shopping and
entertainment destination for the people around its vicinity. More than just a
traditional enclosed regional mall it contains some defining elements of a Life
Style. This is characterized by the presence of loyalty reward program which is
a guest service to entertainment purchases and shopping through earned points
by simply showing the receipts. Ample parking, gift cards, kid’s club calendar
of events and a movie theater also explain the same thing. This is an
indication of a way of life since it caters for the need of every one and more
all areas including shopping dining and entertainment. A regional center
deviating from the traditional is due emergence of technological advancement
which includes: movie theater and loyalty reward program that did not exist in
the past.
It
covers an area of 20 acres next to the historic Farmers market. This translates
to about 575,000-square-foot and offers two valet parking and two self parking
places. Moreover; it offers free parking hours to the guest. It has storefronts
and cafés around a central Town Square area and a fountain of dancing waters.
The presence of good access roads, restrooms, automated teller machines are
appealing to the customers.
The
Groove and its tenants responded appropriately to the challenge of maximizing
density on an infill site upon building a multi storey retail space and getting
customers and tenants utilize the upper floors by upgrading all the lights
around the area. They also added a new street to enhance easy access to the
upper floors. There has been successive growth in the assets of the company as
well as established expansion. Through this it has attracted many customers and
we realize that parking space is a problem due to the high population that’s
visits the place.
The
developer ensured the presence of the best latest movies and a general
combination of the various types of movies to attract many people with different
tastes. Caruso Affiliates would ensure cost-competitive financing to ensure
that all new opportunities are taken advantage of in the market. He could
ensure conservative financing and develop it into a real estate. He would
improve it into a high quality environment where the people around spend time,
dine and take care of their shopping. He would turn the Groove to generating
high grossing sales and making it to emerge the best and one of the most
respected country’s retailers.
The
customers spend around 750 US dollars per square foot which approximately
double the average of the industry. Due to the good management, Caruso has
managed to achieve a revenue growth of about 23 percent every year. This is a
very impressive move to be achieved in just one year. The sales per square foot
reflected a value of about 75 percent beyond the industry average. The result
of this impressive achievement is that the company plans to invest one billion
US dollars in the next ten years.
Typical lease terms
Caruso
began his career in real estate’s by buying land near airports and leased it to
rental companies of cars. He then engaged in developing of industrial
properties just before involving himself in the retail sector. The groove earns a
lot of income from leasing the property annually and that has led to the
overall growth and improvement.
Approximate Square
Footage of the Grove
It
covers an area of 575,000-square-foot which blends a mix of entertainment and
shopping. This area provides a wonderful environment where many people go to do
their shopping and also enjoy their time resting. It has served many issues as
different people go there for enjoyment while others shopping. It was opened in
2002 and won the Retail Traffic Superior Achievement.
Cost of developing the
Groove
It
is a contract that demanded a lot of resources to foster its implementation.
Caruso is an expert in that field of investing in real estates and hence he
managed to control all costs. This led to a bit reduced cost. It has a normal
expenditure of about 126 US dollars per day and makes sales of about 75% above
industry average
A
typically acceptable ratio of occupancy costs to restaurant sales should be in
a way that the sales realized from sales should be greater than the company
costs which generally include rent, tax to the government and more importantly
common area maintenance. These are the most vital costs that must be met to
sustain comprehensive business operation.
The
acceptable ratio of occupancy costs to restaurant sales should be in a way that
the sales realized from the restaurant should cater for all the expenses of the
restaurant at all cost which include both fixed and variable. It should yield
enough to meet expenses such as rent and still earn sufficient profit to the
owner. This will sustain the presence of the restaurant for a long period of
time without collapsing.
Other
additional sources of income in apart from the tenant store leases may include
fee charged for parking services. This earns the company a lot of income since
there is many people visiting the area. Other forms would include money
realized from child club that are frequently held. Due to the great number of
people visiting this area they earn good money. The acquisition vehicle that
Caruso Affiliated used in acquiring the land to build the Groove was a trolley
that was built from a historic Boston street car. This is a market where one
can do as sufficient shopping without much struggle since there are a wide variety
of commodities that meet the large number of people who visit the area. There
is presence of fast foods that local farmers have raised themselves as depicted
in Los Angeles.
Gilmores
family the owners of the land next to the farmers market made a great
contribution by influencing the design of the farmers market. They worked hard
to ensure that its design did not have a negative effect to the market so that
it would attract more customers. One of the major contributions of the farmers
market was that it acted like a food court that the groove did not have. The
farmers market has become a land mark due to the fact that the groove does not
have a food court other than a few snack stations. It has greatly worked on
this drawback of the groove and hence acquiring the large market for fast
foods.
The design of the farmer’s market make it a
unique local icon as this leads to the attraction a large number of people who
come to take care of their shopping there. Also it bears an advantage due to
its location next to the groove where many people visits it gets adequate
customers.
Improvement
on the physical layout should be made day after day to emerge with very good
design so that it can attract more and more customers.
Creation
of more streets and upgrading of all the traffic lights in the area would be a
good recommendation in improving the access to the market. For tenant mix the
farmers need to understand who are their customers, their location, age,
income, and ethnicity and finally identify the one who will take up the
challenge of anchor tenants.
Works
Cited
Caruso Affiliated, accessed on 19 April 2011, http://www.carusoaffiliated.com/
Farmers
market, accessed on 19 April 2011,http://www.farmersmarketla.com/
Hamlin, David and Arena, Brett, Los Angeles's
Original Farmers Market, Arcadia Publishing, 2009, pg 67-90
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