By LESTER CHANG
The Sunnyvale Town Center is awash in problems--from sluggish sales in small shops to a huge vacancy rate--and merchants are frustrated that there's no plan in the works to turn things around.
To make matters worse, the mall's owners have been trying for months to sell the center, and merchants say their landlord is indifferent to their concerns.
"It doesn't have the reputation of being a very good shopping center," said Marie Beers, owner of Heavenly Scents. "They haven't advertised enough to help me in my first year. I would relocate to another shopping center if I could."
The shopping center was opened in 1978 and has not been renovated since, said Greg Moore, general manager of the mall. The current owners have no plans to revitalize the center. Any plan would have to be put forth by whoever the new owners turn out to be, Moore said.
The center has 100 merchants and a vacancy rate of 30 percent--the highest since the mall opened nearly 20 years ago, Moore said. Some merchants have moved out because they wanted to be in shopping malls that have gone through upgrades, he said.
The current owners, TrizecHahan Centers and O'Connor Realty Advisors Inc., put the 271,000-square-foot shopping complex on the sales block for $34 million last June.
The sale would not include three buildings owned by Macy's, JCPenney and Montgomery Ward that total about 440,000 square feet.
The owners are now negotiating with a buyer, said Marc Renard, a broker with Cushman & Wakefield Inc. of Los Angeles, which represents the seller. He declined to name the potential buyer or discuss the status of negotiations.
As for why they're selling, Moore said the owners have evaluated their holdings and feel their decision to sell is "consistent with their investment policies."
The partners also own the Valley Fair and Oakridge malls in San Jose.
Despite concern by the mall's smaller tenants, overall sales appear to be increasing. In 1995, revenue eased up after at least two years of declining sales, said Mary Bradley, finance director for the city.
The mall took in about $32 million during the fourth quarter of 1993. For the same period in 1994, sales dropped to $30 million.
In the fourth quarter in 1995, the businesses generated about $36 million in sales.
Figures for 1996 were not immediately available, but the center generated $21 million and $22 million, respectively, in the first and second quarters.
The difference amounted to an increase of about 12 percent, on a par with increases enjoyed by businesses elsewhere in the city, Bradley said.
Sales tax revenues for the entire mall may have been boosted by sales at the three anchor stores, said Geri Cross, the city's economic development manager.
But small enterprises have complained about declining business and the lack of a plan to bring customers to the complex.
"I am happy when it is busy, but it isn't anymore," said Andrea Gutierrez, who has worked at the center since 1980. "I worry about my job."
Sophie Moulin, assistant manager at the Lane Bryant store, said she has noticed a significant decline in customers in the five years she has worked at the mall.
"People don't even know there is a Macy's or Penney's here, let alone us," she said. "There has to be more advertising."
The center is located near Mathilda Avenue, a busy street, but people have a hard time finding it because it is obscured by office buildings and a two-level garage, said Trudi Ryan, a chief planner with the city.
"It is an asset, but it is designed in such a way that it isn't easy to find," said Suzi Blackman, who heads the Sunnyvale Chamber of Commerce.
Moore said the owners have done their best to inform shoppers about its location and have advertised.
Cross said the owners have not met the demands of buyers for higher-quality goods.
"The problem is that they think they are selling to a lower-income buyer. That isn't so," she said. The median household income in Sunnyvale is about $53,000.
The city has approached the owners about having stores that sell more expensive, high-quality items, but they haven't always leased space to those kinds of businesses, Cross said.
Kal Gil, a manager of the Leather Zone, said his shop carries coats valued at up to $500, but there are no buyers.
"You can't tell me there aren't stores here that carry high-end items," he said. "The fact is that we aren't getting the high-end buyers in here."
Businesses and city officials said a proposal for a Target store on 16 acres near Sunnyvale Road and El Camino Real is a big question mark.
They don't know what impact it will have on the mall if it is approved. It is now before the Sunnyvale City Council for review.
Target wants to lease the land from the Olson Trust and build a 130,000-square-foot store and other buildings totaling 30,000 square feet. The store would be built on the site of the Olson Cherry Orchard.
This article appeared in the Sunnyvale Sun, February 5, 1997.
©1997 Metro Publishing, Inc. All rights reserved.