Tuesday, November 15, 2011

What's Happening at the Pike Center?

Several people have written to me with questions about Bagel City, the Shell gas station and other retail establishments in the Pike Center in light of planned redevelopment there, so here is the letter I received from JBG Rosenfeld Retail detailing the status:

November 8, 2011

The Honorable Nancy Floreen
Montgomery County Council
100 Maryland Avenue
Rockville, MD 20850

Dear Ms. Floreen:

I am writing to share information with you about JBG Rosenfeld Retail's communications with Pike Center tenants, and to provide details regarding the lease arrangements that we have had with them in order to clarify any misunderstanding regarding this issue.

I want to emphasize that we value our relationships with all of our tenants and have been communicating with them throughout this process, to keep them informed of our plans. That is why I am mystified regarding the erroneous statements made over the past few weeks. The
below information will give you a better sense of the reality of the situation.

When JBGR acquired Pike Center in 2006, the property was already repositioned for
redevelopment with termination provisions included in all of the tenant leases.

• All of the tenants whose leases have expired since 2006 have been operating on short
term extensions, knowing that redevelopment of the Center was imminent.

• With the exception of the tenants who are expected to remain, all but three tenant leases
expire by October 2012.

As early as 2010, JBGR representatives began meeting with the Pike Center tenants to
inform them of our plans.

• Motiva (the corporate entity holding the Shell lease) has requested extensions ofterm for
at least 18 months and we have informed them on each occasion that we cannot extend
their lease due to our redevelopment plans. We have recently learned that Motiva did not
share this information with the operator of the station, Lobsang Wangkang

• Both David's Beautiful People and Bagel City have sought additional terms for their
respective leases and we have consistently informed them that we cannot give additional
terms due to our development plans . We offered to help them locate new space.

However, they both informed us that they have been looking for new space on Rockville
Pike for the past few months and each have identified available relocation options.

JBGR has been extremely sensitive to tenants' needs over the years and has worked to
accommodate the tenants during the recent lean economic times

• We significantly decreased rents for struggling tenants -- in some cases by 50% of market

• We have agreed to release tenants from their leasehold interests in advance of the
expiration of their term in order to facilitate their relocation.

The need for tenant relocation is in no way unique to Pike Center.

• The redevelopment of any property affects the existing tenants and often requires them to
relocate. What is to occur at Pike Center is the exact situation that will occur throughout
the County in connection with the redevelopment of existing shopping centers, including
those recently approved under the White Flint I Sector Plan.

I trust that this information helps to clarify this issue and would be glad to meet with you to
discuss this matter in greater detail if you so desire.


Krista Di Iaconi

1 comment:

Anonymous said...

JBGR is ignoring the fact that the community may not want another big box store to overtake smaller places we have been frequenting for years...especially not a stone's throw from Target which offers the same features as WalMart. We don't need more traffic to accommodate a store that adds nothing to the community of interest yet dislocates businesses that are part of the character and fabric of our families. Whether they have been telling tenants about their leases or not disregards whether the plans for Pike Center make sense for this area which they do not. This is an extremely disappointing development for our area.