Raleys Douglas Blvd Roseville

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storewanderer
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Re: Raleys Douglas Blvd Roseville

Post by storewanderer »

I took a look at this Douglas Blvd. Raleys. It definitely looks like a store that is not being well cared for physically. Various lights were burnt out specifically around the perimeter of the store. The floors are filthy and don't look like they've been cleaned in weeks or months (the former Scolaris on S. McCarran in Reno the floors look the same way and it is really awful). Paper products was basically empty, hand soap was basically empty, overall the store was just not stocked well at all. Much worse than any other Raleys I've been to in the past month.

Maybe not maintaining or fully stocking the store is part of the "hard ball" with the landlord. It does appear there is a decent amount of vacant space in the shopping center and it would appear this should be a store Raleys keeps and also that the landlord would want them there.

The pharmacy in the store is closed (professionally walled off, unlike the 3 closed pharmacies up in Reno which are simply "closed" but not walled off).

The store had what seemed like pretty good traffic when I was there (more traffic than most of the NV Stores would have at that time of day) and the fresh departments all looked fine- cases were clean, stocked, neat, products were fresh and in good assortment. The store was well staffed. The eCart area had at least two employees and appeared to be processing some orders.

Hopefully they will resolve whatever is going on and get this store the remodel it needs.
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Re: Raleys Douglas Blvd Roseville

Post by lake »

storewanderer wrote: May 24th, 2020, 11:42 pm Hopefully they will resolve whatever is going on and get this store the remodel it needs.
I would bet Raleys is negotiating with the landlord over dividing the space and subleasing. This store is their largest in Roseville (out of 4, with a 5th officially confirmed this week) and also the least busy. It is pushing 60k sq ft when the Bel Airs are somewhere around 40k and the former Ralph’s is 45kish. The new store will only be 35k. Raleys in the past has been aggressive in reducing store sizes where possible, but recently I came across this website as well. https://www.raleys.com/landing/real-estate/

Douglas Blvd is one of the most expensive commercial corridors in the entire region. It shouldn’t be too difficult to find someone to sublease.
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Re: Raleys Douglas Blvd Roseville

Post by storewanderer »

lake wrote: May 25th, 2020, 9:03 am
storewanderer wrote: May 24th, 2020, 11:42 pm Hopefully they will resolve whatever is going on and get this store the remodel it needs.
I would bet Raleys is negotiating with the landlord over dividing the space and subleasing. This store is their largest in Roseville (out of 4, with a 5th officially confirmed this week) and also the least busy. It is pushing 60k sq ft when the Bel Airs are somewhere around 40k and the former Ralph’s is 45kish. The new store will only be 35k. Raleys in the past has been aggressive in reducing store sizes where possible, but recently I came across this website as well. https://www.raleys.com/landing/real-estate/

Douglas Blvd is one of the most expensive commercial corridors in the entire region. It shouldn’t be too difficult to find someone to sublease.
That website seems to be for rental of former bank or other service provider spaces inside Raleys Stores. It does appear there are a few larger spaces there next to downsized stores.

What is interesting is they have only one NV Store with space for lease, in Sparks. That store's old bank space, dividers, cubicles, etc. are all still there and currently being used as a manager's office. They have multiple other locations up here with closed bank or tenant spaces and do not seem to have those spaces for lease for some reason. They may be reserving the spaces for eCart expansion.

I am surprised they are opening such a small new store but this seems to be part of a strategy to open more new stores and I suspect Raleys sat on a lot of money losing 70k square foot stores in the last recession and does not want to add any more of those for future recessions. I think Safeway and Save Mart are still pushing 55k square feet with their (few) new builds in NorCal.
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Re: Raleys Douglas Blvd Roseville

Post by lake »

The listing for this store is no longer active. CBRE appears to have taken over leasing for the entire center (from a local company) and has a new listing for the entire center, with a clear emphasis that Raley's is an anchor. It seems that whatever the worry was about, has been resolved.
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Re: Raleys Douglas Blvd Roseville

Post by storewanderer »

lake wrote: June 10th, 2020, 8:48 am The listing for this store is no longer active. CBRE appears to have taken over leasing for the entire center (from a local company) and has a new listing for the entire center, with a clear emphasis that Raley's is an anchor. It seems that whatever the worry was about, has been resolved.
Wouldn't it be funny if CBRE took over leasing due to unhappiness from the property owner resulting from the previous leasing agency appearing to try and jerk around the lease situation on the Raleys space?
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Re: Raleys Douglas Blvd Roseville

Post by lake52 »

To revisit this topic, looks like the property sold today to a Daly City based investor who happens to own Kukje Market in the Bay Area.

Seems like Raley’s got a new landlord, I guess the verdict is still out on if this’ll end in eviction. There are a lot of Bay Area investors buying property in Sacramento for perceived value, although I don’t know how much value they got at $13 million for a 40 year old building in mediocre condition.

As previously mentioned, Roseville does not have any large format Asian grocer. The closest one would be 99 Ranch in Folsom. Especially with the growth Roseville/Rocklin is seeing it wouldn’t be a terrible idea for an Asian grocer in the market, although I have no experience with this investor’s store. I would personally think the further west in Roseville the better as West Roseville is much more diverse than East Roseville / Granite Bay where this store is going. However, when the next closest store is 20 minutes further, it shouldn’t be a huge problem.

https://www.bizjournals.com/sacramento/ ... ville.html
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Re: Raleys Douglas Blvd Roseville

Post by storewanderer »

lake52 wrote: June 21st, 2022, 4:50 pm To revisit this topic, looks like the property sold today to a Daly City based investor who happens to own Kukje Market in the Bay Area.

Seems like Raley’s got a new landlord, I guess the verdict is still out on if this’ll end in eviction. There are a lot of Bay Area investors buying property in Sacramento for perceived value, although I don’t know how much value they got at $13 million for a 40 year old building in mediocre condition.

As previously mentioned, Roseville does not have any large format Asian grocer. The closest one would be 99 Ranch in Folsom. Especially with the growth Roseville/Rocklin is seeing it wouldn’t be a terrible idea for an Asian grocer in the market, although I have no experience with this investor’s store. I would personally think the further west in Roseville the better as West Roseville is much more diverse than East Roseville / Granite Bay where this store is going. However, when the next closest store is 20 minutes further, it shouldn’t be a huge problem.

https://www.bizjournals.com/sacramento/ ... ville.html
I think the success of Korean Plaza in Rancho Cordova has gotten attention of other groups. Still just not sure how much demand there is... Kukje is a Korean format too. But Korean Plaza is really an international marketplace hitting on all cylinders not just Korean.

Shun Fat is taking a former warehouse club building there in Rancho Cordova too.

I also wonder if the 99 Ranch in Folsom got the attention of this group. But I don't think that is a very successful store. I think 99 Ranch made it the appropriate size (taking half of the former Ralphs) for the volume it does and while I am guessing the store sustains itself I suspect it is one of 99 Ranch's lowest volume stores.

The Kukje in Daly City assuming this is their only store is quite small.

I see it last sold for $10 million in 2018. The $13 million on its face looks like a bargain price in Roseville close to Granite Bay for that size of a building but when you look at the condition of the building and that it has in my opinion not great access I'm not sure it was so much of a bargain. I guess we will see how it works out or what happens.
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Re: Raleys Douglas Blvd Roseville

Post by lake52 »

Looks like the Sac Business Journal got a little ahead of itself.

https://t.co/vscy9haikL

Hopefully this saga can be put to rest soon with a decent long term lease. As mentioned above, it doesn’t do terrible volume and is in a good location with both high employment and established suburbs. I would hope Raley’s would put some TLC into the store with a long term commitment.
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Re: Raleys Douglas Blvd Roseville

Post by storewanderer »

lake52 wrote: June 22nd, 2022, 7:38 pm Looks like the Sac Business Journal got a little ahead of itself.

https://t.co/vscy9haikL

Hopefully this saga can be put to rest soon with a decent long term lease. As mentioned above, it doesn’t do terrible volume and is in a good location with both high employment and established suburbs. I would hope Raley’s would put some TLC into the store with a long term commitment.
I wonder if Raleys would downsize the drug side off of the store and let this other operator open up a store in the downsized space.
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