7-Eleven nears deal to open store on South State in former Ritz Camera building
A rare empty storefront on South State Street near the University of Michigan Diag soon will be home to Ann Arbor’s first 7-Eleven store.
The Dallas-based convenience store chain is close to finalizing a lease to open a store at 318 S. State St., formerly Ritz Camera.
7-Eleven operates about 36,000 stores worldwide, including 30,000 international stores - like this one in Japan.
From Wikimedia Commons
"(We've) got some exciting plans for this location," she said. "(We) want to really have it appeal to the people on the University of Michigan campus."
The deal is coming about six months after the building was sold for $1.3 million following the camera store’s bankruptcy.
Competition for the space was intense, said listing broker Jim Chaconas of Colliers International, who also has completed recent deals on the street with Pitaya boutique and Five Guys Burgers, which are filling the former Shaman Drum space across from the 7-Eleven store.
“Everyone wanted that space,” Chaconas said about the 5,500-square-foot building.
But, he added, not all prospective tenants had a vision for how to use the upper level. 7-Eleven is expected to use the second floor as part of its plans to create seating space in the store.
Meanwhile, Chaconas said, the chain is pursuing at least two other locations in the area and they’ve narrowed some options.
The former Ritz Camera building at 318 S. State St. is just south of Red Hawk Bar & Grill.
AnnArbor.com file photo
The former Ritz Camera building was listed at $35 per square foot for the entire building, or just under $200,000 per year. Smaller spaces on the street were listed for $40 per square foot.
The deal also brings another non-food chain retailer to the block: CVS has started demolition on its new store about a block north.
With North Quad opening this fall and Zaragon Place 2, another student housing high-rise, taking shape at William and Thompson streets, the proximity to student housing appears to be driving some of the interest in the chains opening urban stores with no dedicated parking.
Both new stores have the potential to add needed services to the neighborhood, said Tom Heywood of the State Street Area Association.
“I’m certain that people at 7-Eleven and CVS run numbers all the time and have some reasonable expectation that stores in those locations would be successful,” he said.
Heywood also noted that some people in Ann Arbor are bound to criticize the additional chains coming to downtown.
However, he said, they also bring opportunity for the independent retailers nearby to attract the pedestrian traffic they generate.
“If the indie retailer is creative, they use the opportunity to compare themselves to the chains,” he said. “I think that can be a healthy comparison and can benefit both.”
The 7-Eleven chain’s only Washtenaw County store is in Ypsilanti Township at Hewitt and Ellsworth roads.
The chain's suburban U.S. locations typically sell gasoline in addition to its line of convenience goods. Its signature product is the Slurpee.
According to the 7-Eleven website, the private retailer is the world’s largest convenience chain, with 6,000 stores in the U.S, and an additional 30,000 internationally. About 4,700 of the domestic stores are run by franchisees.
Paula Gardner is Business News Director of AnnArbor.com. Contact her at 734-623-2586 or by e-mail. Sign up for the weekly Business Review newsletter, distributed every Thursday, here.
Comments
SillyTree
Thu, Aug 5, 2010 : 9:13 a.m.
You can still get Fragels at MD Bagel Fragel on Plymouth.
Roaring_Chicken
Thu, Jul 15, 2010 : 8:28 a.m.
Deb Anderson said: "Offer a mix of things that people need also. 7-11 isn't Falling Water or Middle Earth but at least it offers something that provides a few simple necessities in a pinch. Otherwise people will continue to drive where they need to be and it won't be downtown." Exactly. I have in front of me two preparations, same brand name, same size bottle. From Village Apothecary: $15.34. From Meijer on Jackson and Zeeb: $10.78. That's a $4+ difference. In big cities like Seattle and Denver, the CVS's and Walgreen's downtown provide daily necessities for commuters who DIDN'T DRIVE DOWNTOWN but commute to work. We can make jokes about the one-stop availability of rubbers and ramen, but really... if we want a "walking" downtown, then someone will have to bring in necessities for students and commuters and people who live in the high-density housing visions of our city planners. I remember walking into a Walgreen's in Denver to find freezer cases full of Healthy Choice microwave meals, canned soups on the shelves, quarts of fresh orange juice, etc. It put White's Market inventory to shame. People are lining up to complain about the neighborhood parking crunch when North Hall opens. WHY do students need cars on campus? Because all the affordable necessities are elsewhere. How I miss Kresge's. Urban Outfitters is NOT a "dime-store"!
umich07
Wed, Jul 14, 2010 : 6:40 p.m.
Sounds good to me. Hopefully they will put a real fast food place such as McDonald's in that area. Would make a killing in an area filled with students.
Deb
Wed, Jul 14, 2010 : 2:13 p.m.
Once again, the residents of A2 want it both ways. They want everyone to walk and be pedestrian friendly but you want to poo poo venues that actually provide a few necessities? There's currently enough "ooohs and ahhhs" stores, boutiques, and trendy overpriced restaurants. When I think back to the A2 I remember when I lived here for one year in 1969, it was a lot more vibrant than it is now. People actually came to Main Street to buy everyday things at Woolworth's. The restaurants were affordable and good and FUN! Does anyone else remember Bimbo's and Pretzel Bell??? There were drug stores you could walk to. So what if this is CVS or 7-11, at least you can buy something you need that's affordable and you won't be treated like crap by a sullen English major with a PhD who serves crappy $4.00 cups of coffee for a living. Want a vibrant downtown? Offer a mix of things that people need also. 7-11 isn't Falling Water or Middle Earth but at least it offers something that provides a few simple necessities in a pinch. Otherwise people will continue to drive where they need to be and it won't be downtown. ere.
indigonation
Wed, Jul 14, 2010 : 1:29 a.m.
We need an independent business that's willing to charge normal prices and has a chain like look and is unique and complements the area.
Woman in Ypsilanti
Tue, Jul 13, 2010 : 2:20 p.m.
Hahaha. I work downtown and only wish that this 7-11 were going in on Main Street which would be closer to where I work. I can appreciate that everyone wants little local stores and I usually shop in them. But it is insane how much the businesses over here charge for fountain pop. I just want some diet pepsi without breaking the bank.
Some Guy in 734
Tue, Jul 13, 2010 : 2:15 p.m.
Yes, we certainly can be quite clever, can't we, proclaiming how ridiculous it is that having services nearby and available could be considered an enhancement to academic life. I may be a danged old man, but even though I can't remember where my keys are, I definitely remember being a student and not having a car. UHS and their pharmacy are closed for the majority of the day. If I lived in North Quad and needed a refill of my (hypothetical) Valtrex, I'd have to take a bus off campus. FYI: the #6 between campus and South Industrial is hardly conducive to studying. It sure would be a lot faster if I could walk down the block to do it. Now, I also know myself then (and now). Whether I'd use the time I'd save toward studying is anyone's guess...
Holy Cow
Tue, Jul 13, 2010 : 2 p.m.
Many studies have shown that in order to maintain a vibrant downtown that people will want to live in, there needs to be services that are walkable such as grocery stores, pharmacies, hardware stores etc. Over the years Ann Arbor has become a downtown filled with clothing stores that appeal to college students, numerous galleries, and lots of restaurants. I can tell you where to by a $30.00 pair of pantyhose, but a simple item such as a kitchen towel is nowhere to be found. A nice mix of chain stores such as CVS, 7-Eleven, and hopefully a decent grocery store some day will encourage people to buy the many empty condos downtown.
Claire
Tue, Jul 13, 2010 : 12:35 p.m.
Really? This much whining over a chain? Where is the fury over the monopoly of crappy restaurants that the awesome "local" main street ventures has bestowed on us? I dont hear much complaining about American Apparel, Borders, Noodles & Co., Cosi, Starbucks, Urban Outfitters, etc. Are we just supposed to leave storefronts empty until some rich person wants to open another cupcake store, chocolate shop, oriental rugs, schlock store?
Carl
Tue, Jul 13, 2010 : 12:34 p.m.
I have gone to the Diag Party store weekly since 2001, but suffered through awful awful service. Maybe if they have some competition they will learn to appreciate their customers instead of ignoring them. How many times have in the middle of a transaction with me, they just start a conversation and ignore me. Forget to give me my change or my lotto ticket, And then be rude about it. A few weeks ago I ordered a pizza for lunch, when I went to pick it up he told me he forgot to put it in. I will switch to 7-11, im excited.
Speechless
Tue, Jul 13, 2010 : 12:12 p.m.
With the arrival of 7-Eleven and CVS, the commercial rejuvenation of the State & Liberty corridor continues to progress nicely, but we're not quite there yet. The intersection still lacks a nearby Rite-Aid, Walgreens and Kwik-E-Mart. While it's not clear where all these chains could all locate at the present time, maybe more bookstores will close soon. In the future, lively head-to-head competition among several convenience giants will enhance North Quad's residential experience in ways that higher education alone can never match. After a long, hard day in life sciences studying GMO at the the cellular and tissue levels, just take a walk down the block to enjoy the fruits of such research! On Sale Soon: fruit, with cow molecules spliced in — firefly DNA makes it more visible on the shelf.
LiberalNIMBY
Tue, Jul 13, 2010 : 11:08 a.m.
Is anyone aware of other 2-story stores they've done? Have they been successful, or will the "upstairs" just be a wasted afterthought place for dudes to pass out?
Some Guy in 734
Tue, Jul 13, 2010 : 10:37 a.m.
Bluenella... I seem to recall people complaining in the early '70s when Sears left downtown. So it's bad for downtown when chain stores leave, but it's also bad for downtown when chain stores arrive. People want to have a livable, walkable downtown, but when a necessity such as a drug store wants to set down, oooh, problem! Wherever you go in Sprawlopolis, there's yet another pharmacy, but downtown, they're few and far between. And like it or not, a chain store can have some advantages over a single-owner store. A certain downtown drug store I'll refrain from mentioning (figuratively) crashed and burned when its owner ran afoul of the law. I may be pilloried for saying so, but the customers of a hypothetical chain drug store would have been much better served in that situation. A chain could have replaced the person with problems, and kept serving its customers.
bluenella
Tue, Jul 13, 2010 : 9:20 a.m.
Buy from local merchants & keep downtown/campus from turning into a strip mall. Chain stores are homogenizing the unique character of our towns...what does the City do to encourage & support local entrepreneurs?
Blue Marker
Tue, Jul 13, 2010 : 8:42 a.m.
7-11, Stop-N-Go....what's the diff? :~)
Paula Gardner
Tue, Jul 13, 2010 : 8:35 a.m.
YpsiDipsy, Good question! I remember that location on East University as a Stop N Go... and it was next to Taco Bell. I sublet one summer in the former Anberay Apartments (now the site of Zaragon Place) and loved the location between Stop N Go and Red Hot Lovers. Most of my meals then were Diet Coke & No Dogs (sometimes with fries). But I'll stop reminiscing about college meals now, before I get too sentimental about fragels and papaya juice at the old Bagel Factory.
Blue Marker
Tue, Jul 13, 2010 : 8:34 a.m.
There was a 7-11 on East U just off of South U. As a former Ulrich's employee back in the 80's it was a spot I would hit to get a pop and play Joust. Do you remember that video game? It was very cool!
Guinea Pig in a Tophat
Tue, Jul 13, 2010 : 8:27 a.m.
I'll finally to be able to get slurpified in Ann Arbor!
A2artteacher
Tue, Jul 13, 2010 : 8:24 a.m.
Good call, Nathan Ayers. I was am very excited about that legislation as well. But I feel there is a divide between the townies who are invested in our local food community, and the new arrivals who are invested in beer pong and late night snacks. You can be assured that you won't find me at the 7-11 since I have many better food options.
DDOT1962
Tue, Jul 13, 2010 : 8:20 a.m.
@ Some Guy In 734, I remember Fourth Ave. as you describe, and can even remember when AA had street-walking prostitutes there in the wee hours trying to capitalize on the adult book store customers, lol. Ahh...good times. As far as the new 7-11 goes, I say at least it's not another fast-food chain, and the competition to Diag Party store is needed. Those guys are operating as a monopoly with their captive-market pricing...
stunhsif
Tue, Jul 13, 2010 : 8 a.m.
Great addition to A2. Love the slurpees, brain freeze for all.
Rasputin
Tue, Jul 13, 2010 : 7:57 a.m.
7-11 is cheaper than all these silly boutique stores selling overpriced seltzer water. The new student housing requires these type of stores to make students happy.
obviouscomment
Tue, Jul 13, 2010 : 7:38 a.m.
I'm so excited! Finally an affordable convenience store downtown. I think the local businesses need the competition. They've had a monopoly for way too long...customers will prove which stores they prefer.
YpsiDipsy
Tue, Jul 13, 2010 : 7:21 a.m.
Was there a 7-11 on East University just south of South University in the late 70s/early 80s?
Some Guy in 734
Tue, Jul 13, 2010 : 6:10 a.m.
To anyone tut-tutting over having another chain downtown, remember. It's all a pendulum, folks. Downtown has had more chains, and then fewer, and back again, and I bet you everything in my wallet that it's going to continue that way. (Wallet contents right now are mostly receipts, but even so.) Thinking back to the Ann Arbor of my youth, there was a McDonald's on either side of the Diag. There was a Burger King on either side of the Diag. There was a CBS-owned record store on the corner of Liberty. There were two Kresges, State at North U. and Main at Washington. There was a Radio Shack in the former Follett's. Follett's itself was a chain. So, for that matter, was Ritz Camera. (Is anyone going to say *that* chain went contrary to Ann Arbor aesthetics?) Bottom line: Businesses that serve their customers' needs will thrive. Those that don't, won't. Twenty-odd years ago, Village Corner was pretty worried that the new Hop-In across the corner would hurt their business. Which one of those is still operating? If you still think that chains are necessarily less preferable to local businesses, let me take you to another block from my Ann Arbor childhood: Fourth Ave., between Washington and Liberty. Let's see... a liquor store, an ad-dult book store, and a plasma center. I'm pretty sure none of those were chains. You'd like those better, maybe?
Paula Gardner
Tue, Jul 13, 2010 : 6 a.m.
Yes, Zaragon Place 2 will be at William and Thompson. Thank you, Bear. Here's the story I wrote about it when it was close to submission, which includes a photo of that hole in the ground. Since that time, plans were approved at planning commission. http://www.annarbor.com/business-review/developers-are-finalizing-plans-for-14-story-zaragon-place-2-on-e-william-in-ann-arbor/
GoblueBeatOSU
Tue, Jul 13, 2010 : 5:40 a.m.
well the beer sales will be good. I've never seen a 7-Eleven with "seating space in the store.".....can we grab a cold one and have a seat?...ok...I'm sure we can't
5c0++ H4d13y
Tue, Jul 13, 2010 : 5:20 a.m.
I just downtown yesterday and need to go somewhere to just find a hydrating drink. An SBG would have been great.
Nathan Ayers
Tue, Jul 13, 2010 : 12:36 a.m.
What's with the faceless chains Ann arbor? First CVS on state street now this? More Chinese slave labor mass produced petro-goodies? More scary "franken food" with GMO's and HFCS? Seriously? We don't need to support this model anymore. A real movement toward locally owned/ grown/sourced/ and operated businesses is emerging with incredible community strength and support. One aspect - Granholm was in Ypsi today signing HB 5837- the Cottage Food bill. This is an unbelievably momentous and amazing step in the right direction. Learn more at the statewide FB Page here: http://www.facebook.com/#!/group.php?gid=112394488775862&ref=ts I sense a new campaign emerging: Buy local. Break from the Chains. If you feel the same, share your ideas and speak out. Anywhere, Loudly and Often. Ann Arbor rocks. Don't chain us down.
McDrew
Mon, Jul 12, 2010 : 11:27 p.m.
While it's definitely important to support local businesses, it was tough living on campus without a car - there's a lack of services that wasn't met by Village Apothecary (other side of town, low selection, pretty rough prices) and the Diag store. I can appreciate that those guys at the Diag might be worried about the 7-11, but the CVS is long overdue. I'm glad that the students entering in future years will have what I didn't! These stores will make the area more livable, especially for the majority of students who live in campus housing that don't have cars.
treetowncartel
Mon, Jul 12, 2010 : 10:58 p.m.
Yup, there was a 7-11 there too. Became U of M Credit Union place I think too. and it was Stop and Go not O.
A2 N8ive
Mon, Jul 12, 2010 : 10:40 p.m.
Actually the first 7-11 was on Broadway- near where it merges with Plymouth in the OLD strip mall across from the demolished Kroger's and near Nielson's Flowers in the old church. I remember when it was built in the mid-60's. My favorite candy bar was 7-up and I loved that 7-11 sold it. There was also an early Domino's in the same set of stores. I believe they were the original two. I remember going there with all the kids from our north side neighborhood in my dad's 67 mustang...when it was new.
treetowncartel
Mon, Jul 12, 2010 : 10:28 p.m.
I agree with Paula, the 7-11 was out at Carpenter and Packard. There were two Stop and o.'s, a.ka. Stop and Rob's on Packard. One was near Packard and Fernwood, the current Chipparu's, and the other was Near Satdium, where the Aquarium/Fish store most recently stood. Didn't 7-11 haver some kind of religous right boycott in the 80's-90's for selling adult magazines's? Or maybe it was the liberal drive of Tipper Gore and the PMRC, can't remember who fueled it.
Bear
Mon, Jul 12, 2010 : 8:21 p.m.
First of all, Thompson & Maynard are parallel streets a block apart. Perhaps you were trying to describe the hole in the ground at Thompson & E. William St. on the SE corner. I fear this 7-11 chain, along with CVS will eventually drive Diag Party Store out of business as Diag Party Store will not be able to compete with the two chains. Bummer for Jerome, the owner, who has been a part of the community for decades. We just let in all the chains to drive the small business operators out of the very spots we have been working so hard to make profitable for them. hmmmm.... This will drastically change the character of that area of State St. and I predict it won't be in such a positive manner. My opinion, but one based upon experiences that I have had in other cities. We'll see soon enough. The N. Quad building is definitely going to change the face of the area, but I don't see that as being anything other than beneficial. Not so with the CVS or 7-11 which I think will detract from the character of that part of town. But at least you won't have to go to the edges of town to get prescriptions filled. Word.
Hatim Elhady
Mon, Jul 12, 2010 : 7:51 p.m.
Totally against Ann Arbor aesthetics and therefore I am TOTALLY against this! CVS and now 7-11...
frozenhotchocolate
Mon, Jul 12, 2010 : 5:31 p.m.
Diag is overpriced like cvs is, 711 is dirty, when will there be a dollar stor connected to a mcdonalds open dtown.
phdeez
Mon, Jul 12, 2010 : 4:39 p.m.
i am not against chain stores, but in this case, having a 7-11 directly across the street from a CVS and half a block from the Diag Party Store seems like convenience store overkill. I understand that CVS has a full service pharmacy, but beyond that, all three will serve a similar function for drinks, snacks, sundries, etc. Luckily the Diag has the upper hand with its pizza.
Paula Gardner
Mon, Jul 12, 2010 : 4:22 p.m.
The only one I could remember was at Packard and Carpenter in Pittsfield Township in about 1989. It's now a vacuum store.
Matt Cooper1
Mon, Jul 12, 2010 : 4:19 p.m.
Actually, if I remember correctly, Ann Arbor had a 7-11 on Packard road near Platt back in the 70's and early 80's.