Never before has there been a shopping center in Orange County where you can buy a used car online, go bowling, relive the nightlife of the ’70s and ’80s and inhale flavored oxygen.
The Block at Orange’s latest list of new tenants, announced last week, is certainly a funky group of retailers that are heavy on entertainment.
It’s a formula that seems to be working for the Block. Nearly 18 months after its blockbuster opening, the Block at Orange is drawing an average of 1 million visitors a month.
“They have the right concept for the ages,” said Tony Cherbak, retail analyst, Deloitte & Touche LLC in Costa Mesa.
According to sales-tax figures from the city of Orange, The Block’s sales for the first three quarters of 1999 were $86.6 million and fourth-quarter sales are expected to push that to an estimated $125 million for its first complete calendar year since opening in late November 1998. (Fourth-quarter 1998 sales were $15 million.)
For the first quarter of 2000, The Block’s “sales are up 6% over last year and have exceeded expectations over what we originally thought,” said Jim Mance, regional manager for the center, who put current occupancy at 98%. Sales for Q1 1999 were $25.7 million.
All that means The Block is likely to debut this year in the No. 11 position on the Business Journal’s list of OC’s biggest shopping centers,the highest ranking among the so-called “shoppertainment” centers.
“I think that’s a solid performance,” notes Cherbak.
The Irvine Spectrum Center’s sales were $71 million in 1998 and it ranked No. 19 on the Business Journal’s list of top shopping centers. Sales for 1999 were not available last week, but for the first quarter of 2000 sales were up 15.6%, according to one company official.
The Block plans to build a second phase that would add 250,000 to 300,000 square feet to its existing 800,000 square feet. About a year ago, the company projected a fall 2000 opening for the second phase, but officials now say that the company is focusing on other Mills projects. The Irvine Spectrum is working on a new third phase that will double its size to 1 million square feet.
The newly announced Block tenants are The Zone, a Canadian-based microbrewery/40-lane bowling alley; MARS Music, a musical instrument retailer that invites amateur musicians to perform in the store; New York-based Polly Esther’s Disco / Culture Club; as well as specialty stores including iMotors.com; O2 Caf & #233;; Eye Candy; and Hallmark Gold Crown.
The new tenants, who will fill about 100,000 square feet, will join an eclectic group of anchors that includes Vans skate park, Ron Jon Surf Shop and Dave & Buster’s.
Cherbak warns that the recent downturn in the stock market’s performance could be a challenge to retailers if consumer confidence wanes. Also, Cherbak said retailers at The Block have not fared as well as tenants that are more entertainment-oriented.
Indeed, The Block is OC’s largest shoppertainment center, but it’s modern mix of entertainment and retail shops has quickly earned it a ranking near the top 10 biggest malls in the county.
Bob Watman, president, Polly Esther’s Disco / Culture Club said his company chose The Block to build its 20th night club because of its fun atmosphere.
“Our nightclub is colorful, high energy and fun,” he said. “We use a lot of 3D objects such as a painted double-decker bus and most (landlords) discourage you (from using those features). They want 100% uniformity, but The Block encourages fun so the fit is perfect.”
The nightclub is located in the space left empty by another proposed club, Graham Central Station, whose company filed for bankruptcy prior to The Block’s opening in November 1998.
Gary Schweikhart, a spokesman for MARS Music, said his company’s new 25,000-square-foot retail music superstore is its first in California. The Zone, a 44,600-square-foot microbrewery pub, restaurant, bowling alley, will be making its U.S. debut.
Retailers that have left since The Block opened 18 months ago include Bon Bon International, T Wraps, American Outpost, Coda, Big Entertainment, Just for Feet, Wild Pair, Day Runner, JNCO and Las Vegas Golf & Tennis. n
