Ralphs Encino Closing Jan 31

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Bagels
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Re: Ralphs Encino Closing Jan 31

Post by Bagels » January 13th, 2020, 5:26 pm

klkla wrote:
January 10th, 2020, 5:44 pm
According to that site the center opened in 1994. If Ralphs' lease expired last year that means they had a 25 year lease, which is normal but I'm surprised they didn't have any five year options, which is a standard practice for grocery store leases.
They probably did have an option but declined. I didn't research/verify it, but I read elsewhere that Kroger outright owns the (old) Ralphs up the street. The market rate adjustment on the lease was likely high enough that Kroger calculated it'd be more beneficial to close the store than to exercise an extension.

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Re: Ralphs Encino Closing Jan 31

Post by Bluelightspecial » January 13th, 2020, 7:28 pm

Caruso has at least two other centers with a Ralph's in them so I doubt it's an issue of Caruso wanting Ralphs out. More than likely they got a better offer from another high end supermarket like Bristol Farms or Whole Foods. It's interesting that on the city's building department web site it shows they have reviewed electrical and mechanical applications from January 2020. It doesn't list the applicant name. My guess (and I could definitely be wrong) is that Whole Foods will be taking the space. Some of the engineers on the permit applications are the same as Whole Foods is using for their new store under construction in Sherman Oaks.

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