The operators of Costa Mesa’s Triangle Square are preparing for life after anchor tenant NikeTown Orange County.
Last week, a Triangle Square spokeswoman said shopping center manager Charles Dunn Real Estate Services Inc. still was talking with Nike Inc. about staying at the mall.
Even so, Charles Dunn is talking to other retailers about taking NikeTown’s space, a 30,000-square-foot domed store that is Triangle Square’s centerpiece.
The Closet, a Costa Mesa-based chain of clothing stores, is a prospective tenant for at least part of NikeTown’s space, according to Triangle Square spokeswoman Vanessa Showalter.
A seller of trendy teen clothes, The Closet has a small store downstairs at Triangle Square facing Harbor Boulevard.
The Closet, which didn’t return calls for this story, recently expanded at Fashion Island and has another store in Huntington Beach.
Bodies In Motion, a Los Angeles-based gym, also was rumored to be a possible tenant. The gym recently opened at the Irvine Spectrum Center.
NikeTown said earlier this month it plans to close its store by this week because of a lack of business. Low occupancy at Triangle Square allows NikeTown to get out of its lease three years early, according to the company.
Triangle Square has had trouble in the past few years keeping tenants. NikeTown contends that the center’s 70% occupancy rate is too low.
Recent additions,Chronic Catina and Kelly’s Coffee & Fudge Factory,bring occupancy to 75%, enough to keep NikeTown’s lease valid through 2008, Charles Dunn said.
A departure stands to leave a big hole at the 191,000-square-foot shopping center.
To get new tenants, owner Triangle Square Investments LLC has been cutting deals. It’s even enlisted the owners of Chronic Cantina, who run Chronic Taco in Newport Beach, to help with marketing.
The center, wedged between Harbor and Newport boulevards, opened in 1992 with the help of the city of Costa Mesa. Since then, the city hasn’t had any day-to-day involvement, said Michael Robinson, assistant development services director.
But, in the words of a clerk at Bon Bon Sticky Fingers candy store, Triangle Square suffers from a chicken-egg syndrome. Few want to come because they believe no one is there, she said.
Sticky Fingers is the only store upstairs in Triangle Square’s former food court. The candy store feeds off Edwards Cinemas moviegoers.
Business could be much better, according to the clerk.
Triangle Square’s problems have been blamed on frequent management changes, high rents, underground parking and lack of marketing savvy.
Rob Stevens, director of operations for Sutra Lounge, said the club has approached management with a plan to liven up things. But he said he’s not even sure that the plan was passed along to the owners.
“They need to capitalize on what works,” he said. “Clearly Yard House works. Clearly Sutra Lounge works.”
Sutra opened at Triangle Square last year.
“At the time, everyone told us we were crazy,” Stevens said.
But Sutra got a good deal on rent, he said.
Sutra recently opened up an adjacent headquarters for its parent company, Culinary Management Group, which plans more lounges in San Diego and Palm Desert. Sutra now takes up 8,585 square feet of space at Triangle Square.
Other tenants say they’re doing well, too. Like Sutra, they claim loyal customers.
“I don’t think my business is suffering because NikeTown is moving out,” said Marcus Drew, co-owner of Executive Tans, a tanning salon on the lower level. “This type of business is a destination for people. They come here specifically to tan.”
Dan Biello, co-owner of Mexican restaurant and bar Chronic Cantina, said he won’t miss NikeTown if it does go.
“NikeTown doesn’t do much for me,” Biello said.
Chronic Cantina is set to move into 2,484 square feet of space upstairs in the spring.
Biello also owns Costa Mesa clothing company Chronic Industries. His partner, Keith Scheinberg, owns Pimpit Empire, a Costa Mesa-based clothing and screen printing company.
Biello said he’s hoping to leverage his apparel ties to create a nightlife vibe on the second floor. But he’s aware of the risk.
“La Salsa was up there and it didn’t do so hot,” he said. “We’re taking a chance, obviously.”
Chronic Cantina plans to spice up the restaurant with live music, outdoor firepits and perhaps bikini-clad women. It secured a live music permit and is working on approval for bikini contests.
“Whatever you got to do,” he said.
Kelly’s Coffee & Fudge also is taking a chance on Triangle Square. It signed a five-year lease and plans to open in the spring.
“We know there’s a lot of traffic,” said Michael Wong, chief financial officer of NWE Inc., a Cypress-based investment group that is opening Kelly’s on the second level.
Kelly’s looked at a lot of places, including the Block at Orange, he said.
“For a mall, they were pretty nicely priced,” Wong said.
