The LAB, an anti-mall experiment founded more than three decades ago by Shaheen and Linda Sadeghi, is adapting its footprint to take advantage of changing consumer shopping patterns.
The center, known for its eclectic mix of mom-and-pop retailers and restaurants, opened with Urban Outfitters as an anchor in 1993 – the first one in Orange County. But this month, the mega-retail chain vacated its 12,000-square-foot store, opening the door for
The LAB to repurpose the space by converting it into six mini-stores and one new restaurant.
“Retail is not what it used to be,” owner and operator Linda Sadeghi told the Business Journal. “So, Urban’s business has changed. They’re no longer privately held, (and) they’ve grown into this very successful global entity.”
The executive, who also designed the Costa Mesa development, said that the Philadelphia-based retailer had been debating between shrinking its space or exiting the mall altogether.
When they finally opted to leave, Linda Sadeghi took the pending vacancy as a sign to return to the original ethos of The LAB, which stands for “Little American Business.”
“I was kind of excited to have the challenge of going back to our little American businesses,” she said.
The incoming stores will be in the former Urban Outfitters space after renovations are done. Sadeghi noted that the vacancy will be divided into “realistic retail spaces” with new footprints ranging from 600 to 1,500 square feet, “the sweet spot” for smaller business tenants.
“From a design standpoint, it’s really exciting to put together,” Sadeghi said.
The renovation includes creating a larger footprint for a full-service eatery, according to Linda Sadeghi.
“We’re actually going to reconfigure a new restaurant,” she said. “We’re going to enlarge it all the way to the Bristol frontage, and we’re going to add the amenities that a full-fledged restaurant really needs, which is the grease trap, the hood, the proper utilities.”
New Leases in the Works
The LAB anti-mall first opened in 1993.
“We were migrating from the apparel industry into retail. The LAB was an appropriate name for our experiment on so many levels, and our original vision lasted so much longer, and now it’s a family business for us,” Sadeghi said, adding that she was the one to tour the buildings initially when it still housed a night-vision goggle factory.
Waiting on the demolition permit from the city, the plan is to first take out the dressing rooms, stock rooms and non-structural interiors left by Urban to start the delineation of the interior spaces.
There will also be a “paseo,” or promenade, built between the former retailer space and the nearby structure to connect the two buildings.
“We’ve had great response from new tenants, and I think it opens the door to give us more individuality and add other services that we never had room for before,” Sadeghi said.
So far, The LAB has 30% of the leases signed and Sadeghi added that additional letters of intent conversations are in the works for the other spaces. Tenants will be announced in the coming weeks.Â
“We’re looking for someone who fits that little American business mantra, so family owned,” maybe local or with one location and no duplication with existing tenants, she said.
She noted that the available retail space has been generating a lot of interest from Los Angeles and that her team is in talks with a restaurant operator from the city.
“We would love someone with operational experience. We want them to have a sustainable business,” Sadeghi said.
The LAB aims to have most of the new stores open by the end of the year.
