Indianapolis didn't exactly warm to Spicy Pickle. The Denver-based restaurant
chain shut down both of its Indianapolis-area locations shortly after opening them last year. But the chain hasn't rid itself
of the market yet. Simon Property Group Inc. has filed suit against franchisee AJ Enterprises LLC, seeking more than $977,000
in unpaid rent for a prime space at Castleton Square Mall. Spicy Pickle took 1,860 square feet in the mall's new lifestyle
component several months after it announced plans to open 10 local stores. Its other location was along 116th Street in Fishers.
The Castleton lease called for the franchisee Alicja Jaworski to pay $40 per square foot, or $74,400, per year, along with
8 percent of sales (above a certain threshold). The franchisee has not yet responded to the suit and could not be reached.
Shares in Spicy Pickle Franchising Inc. were trading at 19 cents today. Earlier post is here.
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Welcome to Property Lines, Indy's source for neighborhood real estate news. Your host is Scott Olson, IBJ's real estate beat
reporter. Edited by Cory Schouten.
Indianapolis didn't exactly warm to Spicy Pickle. The Denver-based restaurant
chain shut down both of its Indianapolis-area locations shortly after opening them last year. But the chain hasn't rid itself
of the market yet. Simon Property Group Inc. has filed suit against franchisee AJ Enterprises LLC, seeking more than $977,000
in unpaid rent for a prime space at Castleton Square Mall. Spicy Pickle took 1,860 square feet in the mall's new lifestyle
component several months after it announced plans to open 10 local stores. Its other location was along 116th Street in Fishers.
The Castleton lease called for the franchisee Alicja Jaworski to pay $40 per square foot, or $74,400, per year, along with
8 percent of sales (above a certain threshold). The franchisee has not yet responded to the suit and could not be reached.
Shares in Spicy Pickle Franchising Inc. were trading at 19 cents today. Earlier post is here.
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First, let me say that I love the idea of communities being self-sufficient and people in the community not needing cars, living, working and shopping all in their neighborhood. To sum it up; I love good urban planning and hate urban sprawl. However, there are two reasons that I am against this development. First, this building doesn't fit. Density can occur in Ripple by building up top the street and better use of land. The scale of this project should be downtown. Secondly, I would be willing to bet that if a whole foods in Ripple is built, the Nora store would be closed. Here's my reasoning. The Nora Whole Foods expansion plans have been put on hold. I'm guessing they are waiting to see what happens with the Ripple proposal. Communities next to each other should work together to end sprawl and not work against each other and take other neighbors assets. Develop something both communities can be proud of and will attract more development and density. There's my soap box for the day.
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My apologies, Lou - it was the Indy Star that printed cost for entertaining "celebrities" during Indy 500. Sorry for confusing the always timely IBJ with Indy's Gannett reprint news source.
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That's fine if you want a grocery store that has festivals and live music. I guess with the prices they charge, they can afford to host such activities. As for me, I choose to spend my money more wisely and if I want to go to a festival or a concert, I will pay for that separately - not through my grocery bill.
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TIF is not just to attract development but to attract a higher use for that development. Carmel wisely is using TIF for numerous public parking garages. Asphalt seas of parking pay little taxes and bring even less value to a commercial area. Also density is what is going to save Indy and Broad Ripple. The days of trying to compete with burbs are long gone.
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The Prestige was an awesome movie.
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$40/sf PLUS 8%???
PLUS the kickback fees to the franchisor???? (6% - 8%)
Sheesh.
And the general rule of thumb is you should make your rent in about a day no more than two, if you have ANY hope of having something left at the end of the month for yourself. For 90% of restaurants this is impossible.
Two visits to the Castleton location were two many. It was highly mediocre, yet another nnumber in an area, that for the most part, is filled with chain-dining pablum.
I tried to dine at the Castleton Spicy Pickle so many times, only to be turned away by the parking nightmare. I don't mind walking a few blocks downtown to get to a good restaurant, but walking through a Simon sea of asphalt was too much. It sounds like I didn't miss much.
$9. jesus, i'm still peeved.
Is this customary for landlord's 8% on top of 1mm (or whatever number) in a mall -type setting? why does he need to be in my pocket? Is 1mm the magic number? Why or why not? Do you mean the owner actually had someone represent them for this kind of a deal?
Why should Simon pay a broker anything when they already have all of the national contacts to begin with?? Broker's are over paid and typically get in the way of getting a deal done because all they worry about is their commission.
Yes, it is customary to have to pay additional percent rent over a certain sales breakpoint on retail deals, unless you can negotiate out of it.
Simon wouldn't use a broker because they have experienced leasing reps, but the tenant definitely should. Would you sign a 10 year lease without consulting someone with real estate knowledge? Any good broker knows you have to get the deal done to get paid anyway. :-)