The Sun
Sunnyvale's Newspaper

New T&C owners plan big overhaul

By Justin Berton

New owners took over the Sunnyvale Town & Country Village last month, promising to revitalize the shopping center by filling the empty store space and trimming back the well-known sprawling ivy.

But the new owners won't offer those longtime tenants who enjoy below-market rent the same deal.

Ivan Margaretich, a representative of Dubrovnik Associates Inc., which purchased the center for $10 million, said, "We're coming up with a new plan because we all want more business."

The new plan calls for improved lighting of the center to assure nighttime passersby that the center is open, painting each shop its own color to promote uniqueness and possibly launching a bigger co-op advertising campaign to lure customers.

"The place was let go by the previous owner," Margaretich said.

Margaretich expects the overhaul, including full occupancy of the shops, to be completed within one year.

But first, the familiar ivy that has been a symbol of the outdoor center since the late '60s needs to be removed from the roofs. Margaretich says other roof problems are being fixed and workers will complete the project in a few weeks.

Some problems inherited from Williams' ownership won't be as easy as trimming plants or tiling the roof.

Margaretich said he couldn't discuss individual rental agreements, but did acknowledge a number of the leases signed with Williams were well below market value. He also said that's not likely to continue for incoming tenants.

"We're trying to turn the center around," he said, noting the increased revenue would be used for improving the center's facade.

Shop owners, who each pay different rates per square foot, also declined to comment on their rent.

Margaretich said 11 units are currently vacant, representing close to one-third of the shops.

Some stores have been closed for more than a year, leaving empty spaces with dust-covered windows.

The ghost-town atmosphere hardly leaves potential consumers with a positive impression, shop owners and Margaretich agreed.

Deborah Maxwell, owner of Peacock's Clothing store specializing in high-end handmade bridal and suit clothing, said she sat down with the new owners last week to discuss the changes.

Maxwell said she understood raising the rents for new and incoming tenants if that's what is necessary to improve the center.

"It's a business" she said, adding, "Even with an increase [in costs], I would try to figure out how to stay."

Maxwell said she would raise the prices of her product only as a last-ditch effort to remain at the center. She also said she is not worried that it will ever come to that.

The owner of a hair salon located in the center, who expects a raise in rent when the lease expires, said, "In order to justify that [increased] price, we better get something for the money."

More changes could be on the way for the inside of the center. Margaretich said the hardly-used upstairs portion of building No. 6 has approximately 4,000 square feet of empty space.

The new owners are considering renting the area as office space rather than retail stores.

One assurance Margaretich did give was denying rumors the center would be demolished to make way for new development.

"We bought it for the investment," he said.

Some shop owners praised DAI for the taking the initiative to change the center's image.

"If they do what they say they're going to do, it will be good for me and anybody who has a store and certainly the entire community," Maxwell said.

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This article appeared in the Sunnyvale Sun, March 25, 1998.
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