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Cedros Avenue’s in Full Bloom as Posh Design District

Sean MacLeod figures that he was just the right guy at the right place at the right time.

“And I was able to convince everybody to see it my way,” joked MacLeod, who is credited with lighting the spark that ignited what is now the Cedros Avenue Design District in Solana Beach, now in its 10th year.

MacLeod, who started acquiring property in 1991, now owns more than 100,000 square feet of commercial property on the avenue. He knew something about the process of developing a posh district, having earlier experience in the redevelopment of Montana Avenue in Santa Monica, a 10-block stretch of upscale shopping and dining businesses.

“I saw what I thought was a terrific opportunity to take the character and history of the street and enhance it without losing its character,” said MacLeod.

Now, a decade later, the posh European-styled avenue, located north of the city of Del Mar between Via de la Valle and Lomas Santa Fe Drive, boasts some 90 businesses , shops that feature sculptures, Italian ceramics, mosaic tables, home furnishings from around the world, designer clothing and jewelry, in addition to art galleries, caf & #233;s, restaurants and day spas , it even has a cat and dog boutique.

On Oct. 18, district merchants kicked off a 10th anniversary celebration, followed by a streetwide open house Oct. 20, with food, drinks and entertainment offered throughout the day.

“We’ve naturally evolved over the last 10 years,” said MacLeod. “We have had incredible growth of the district and sales tax revenue production.”

In 1997, there was about 290,000 square feet of commercial, retail and office space in the district, generating roughly $50,000 in annual sales tax revenue for the city. Ten years later, there is about 322,000 square feet, generating an average of $500,000 in annual sales tax revenue, he said.

“They like us, we like them,” MacLeod said of Cedros Avenue’s rapport with the city. “We work very closely with them.”

Solana Beach Mayor Lesa Heebner is equally complimentary when speaking of the design district.

“It’s evolving as such a desirable place for local businesses,” she said. “People love going there, with its unique ambience. You get so sick and tired of the same old strip malls , anywhere U.S.A.”

In 1997, the prevailing market rate for for-sale commercial property on Cedros Avenue was $200 per square foot, compared with a range of between $450 and $600 a square foot today, MacLeod said.

During the past 10 years, a number of buildings in the district have been adapted from industrial/warehouse uses, with a rent base of 60 cents to 80 cents per square foot, to current retail and office uses, ranging from $2.50 to $3.50 per square foot.

How has this impacted the mix?

“The only merchants priced out were those in the very early days, who needed more of an industrial-type space,” he said. “We have tried to keep the composition of businesses on Cedros consistent, and the turnover very low.”

MacLeod serves on the executive committee of the South Cedros Property Owners Association, which oversees the avenue.

“We’re not a formal business improvement district,” he said. “We assess ourselves on a voluntary basis per property, based on the number of square feet,” said MacLeod. “Some owners pay more, some less.”

The five-member executive committee holds annual meetings and oversees a budget that ranges from $40,000 to $100,000.

While the district receives no subsidy from the city, they have, on occasion, shared costs for improvements there, said MacLeod.

“We installed 25 pedestrian streetlights along the avenue three years ago,” said MacLeod. “We felt that it would be a benefit to the district and would enhance shopping.”

Next year, the merchants hope to widen the sidewalk and add a pattern “unique to the design district,” said MacLeod.

Heebner said that plans to widen the sidewalk on the west side is “really necessary” for the entire area.

“We want this to be pedestrian-oriented, where you can walk this whole loop and find little surprises , a stand of art, places where you can go and hang out.”


Evolving Tastes

The character of the district has changed through the years. Initially, the focus was on home furnishings, but later expanded to cater to the district’s primary target audience , the affluent female market , with businesses offering trendy fashions, health, wellness and beauty services, along with art galleries and day spas, said MacLeod.

About 60 percent of the traffic comes from a seven-mile radius, he said, and the other 40 percent are tourists who visit during the summer and during the horse racing season or holidays, as well as snowbirds visiting from Arizona.

“We have a ton of traffic from Orange County and L.A.,” he said.

In the next 10 years, MacLeod hopes that the district will continue to broaden its selection of goods, while “keeping the charm and nonconformity and eclecticism.”

“We are attempting to give our customer base, which is growing, more sidewalk caf & #233;s and bistros,” he said.

MacLeod said that the executive committee is working with key property owners and the city, and hopes to have this in place “over the next six to 12 months.”

He’s hoping to attract compatible businesses from the Greater Southern California region, while being careful about adverse impacts on traffic and parking.

Stephen Hersh, president and chief executive officer of Timeless Furnishings & Patio located on Cedros, said he would like to see more business being done after dark.

“If you are in the furniture business, it’s the best street in San Diego to be on,” said Hersh. “But I’d like to see it become more of a hub, with more nighttime activities.”

Hersh has been on Cedros Avenue for seven years and has seen his share of ups and downs in the market. He recalls the heady period, not so long ago, when everyone was buying homes.

“Everybody wanted all new furniture, because they were upgrading to a bigger home,” said Hersh.

But about 18 months ago, “It got tough,” said Hersh, noting that his store’s revenues are down 10 percent to 15 percent from those flusher days. “The tap just turned off.”

The Solana Beach-based Muttropolis, a high-end boutique for doted-on dogs and catered-to cats, opened its first store on the avenue four years ago, and also has locations in La Jolla as well as Newport Beach; Tucson, Ariz.; and Boulder, Colo. The shops, which carry a line of natural pet food, also are big on coordinating pet d & #233;cor and accessories into the design of a home.

“Two of the owners have design backgrounds, and we try to do exclusive items , custom beds, where you can select your own fabrics,” said Christy Shikiya, designer and sales representative for Muttropolis.

The store taps the talents of outside designers and architects, who create finely crafted wooden raised feeders, some of them costing up to $200, and sleeping pods, complete with furry pads, with price tags ranging from $200 to $400.


Modern Classics

Solana Beach-based Designcorp, which operates an exclusive retail store, also runs a successful commercial interior design service.

The company’s clients have included the San Diego Building Industry Association; Carlsbad-based investment banker Kinsell, Newcomb & De Dios Inc.; and the San Diego offices of Hunsaker & Associates, a planning, engineering and surveying firm.

Designcorp deals in “modern classics” of museum quality, featuring such items as Barcelona chairs that range from $3,000 to $5,000.

“It’s considered art,” said Chris Jordan, president of the award-winning Designcorp.

When designing for her commercial clients, Jordan adheres to the philosophy of “form follows function.”

“It has the most to do with the business of business,” she explained. “What do they do, who are their clients? We design to their criteria.”

But when she does residential design , for the homes of her corporate clients or friends , she follows a different philosophy.

“I very much don’t follow a theme or the newest, coolest thing to do,” said Jordan. “I design for people’s lifestyles , how they live and plan on living in the future.”


Lessons Learned

For some merchants who specialize in home d & #233;cor, the softening real estate market has brought dark days.

But Jordan said that she learned a lesson from the real estate bust in San Diego back in the early 1990s.

“I was strictly commercial, not retail in the early ’90s,” she said. “This is why I have diversified. Now, I can ebb and flow with the market.”

But whether it’s the commercial or residential market that is ebbing or flowing, she said, there are always opportunities out there for someone. Harkening back to the bad old ’90s, Jordan observed, “While the commercial market tends to tank quickly in bad times, the residential market “sort of glides and then comes back.”

“Now, residential building is down, but this can mean that people are staying where they are and doing remodeling,” she said.

Either way, Jordan intends to be prepared this time.

“There is always a ripple effect,” she said.

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