Packard Street business district gains 2 new tenants amid changes to corridor
Improvements to the parking lot at the old Hollywood Video store on Packard Street were underway Tuesday in preparation for new tenant Bgreen, a locally owned green construction materials company. Photo by Dan Meisler.
Despite some recent closings and proximity to the shuttered Georgetown Mall the corridor has been home to some longtime staples of the local business community like Dairy Queen, Fraser's Pub, Lou's Wolverine Transmission and the high-end Morgan & York food store, formerly Big Ten.
Now, BGreen, a locally owned company that sells environmentally friendly construction materials will occupy the space that formerly housed Hollywood Video, and a medical marijuana dispensary is renovating the building that was previously occupied by the Aqua Tec pond supply retailer.
They are joining some other relatively new businesses in the area: Liberty Title, which purchased a former bank building for a new branch office last year; Cake Nouveau which moved from downtown this spring; and a new nursery called Morty's Secret Garden next to Morgan & York.
Tenants, owners and brokers say a combination of relatively low rents compared to downtown and higher profile commercial centers, a stable surrounding neighborhood and a good deal of traffic have made the area an attractive commercial real estate destination.
Daniel Stephens, co-owner of Bgreen along with his wife, Delphine, said he needed a retail location with greater visibility than his current store on South Industrial. The Hollywood Video site also provides enough space to consolidate the company's warehouse -- currently at State and Ellsworth -- into one place.
He added that the stability of the neighborhood and the longtime businesses on Packard were pluses as well.
"The cornerstones are pretty stable," he said.
Stephens, who formerly operated the Ethnic Creation stores in Ann Arbor, said his goal is to boost the retail side of Bgreen's business, which also has a wholesale, business-to-business component with clients including the University of Michigan Hospital System cafeteria.
"The key is to get exposure on Packard," he said.
The larger space will also allow Bgreen to show more extensive displays of its materials like flooring and paint, Stephens said, and expand its product lines.
The expansion will almost double the company's footprint, from a combined 4,500 square feet to 7,500 at the old video store at 2111 Packard. Stephens said he signed a five-year lease with two five-year extension options. Bart Wise of Swisher Commercial helped broker the deal.
"From my perspective, the tenant saw the value of the 'neighborhood center' characteristic as opposed to the 'high profile freeway interchange retail strip,'" Wise said. "The tenant is going to get a very visible, high profile suite with about 100 feet of frontage and relatively low rental rate. The landlord, with a long-term tenant in hand, is making improvements to the site including new parking lot and refurbishing the facade."
At 1818 Packard, the former Aqua Tec store is undergoing extensive renovations to become a medical marijuana dispensary. The Chicago-based proprietor would not comment for this article. Property owner Derrick Oxender also said he was under legal constraints, contained in the lease agreement, not to disclose any information on the business.
But he did say the company had invested $80,000 in the property and signed a long-term lease.
City permit records show that the tenant, who Oxender said wanted to buy the building outright, has reworked the existing sewer and drain pipes under a bathroom, improved the duct and electrical systems, reshingled the roof, and repaired a damaged fence.
Oxender said it was harder than he had thought to find a tenant for the building, but agreed that the combination of relatively low rents and high traffic made the area attractive.
"It was always a real solid, stable neighborhood," he said.
Dan Meisler is a freelance reporter.
Comments
RenegadeSolutions
Fri, Aug 6, 2010 : 10:25 p.m.
I have extensively interviewed dispensary owners and law enforcers in California and Michigan who paint a VERY different picture of what can happen when a medical marijuana business opens and is zoned properly. With respect. ALL dispensaries have a well thought out, good neighbor security policy. This is really frustrating because you're perpetuating lies when you have done no research. Maybe that's the point, to whip up fear. I interviewed the LA Police Chief, who tole me banks are robbed more frequently in his town than dispensaries. Harborside Health Center serves up to 800 patients daily (and no, the dispensary on Packard will NEVER see those kinds of numbers so don't get hysterical) and they have never had a problem. That's because medical marijuana patients aren't criminals. It's the black market drug dealers who are criminals, they don't bother to apply for permits. They're the ones selling heroin to kids in Chelsea, THEY DON'T WANT TO SEE ID. No medicine or money is kept on site over night. Camera's are everywhere, assuring patient and neighborhood safety. It's the black market that creates "problems" like violence and crimes. These are legitimate business owners, members of your community. I know the owner and he lives across the street! Why don't you folks walk over there and talk to him, instead of hiding in the chat rooms predicting doom? The Ann Arbor Police Chief testified that there have been NO complaints or issues with any of the existing medical marijuana facilities in our town. Until you have your facts straight, please don't espouse "knowing" anything, or trying to get your neighbors all freaked out. Walk over there and talk to those folks!
Lokalisierung
Thu, Jul 15, 2010 : 1:34 p.m.
"Morgan & York is great. Saying that it's expensive and pretentious is like complaining that the chop house charges 3-4 times what Outback charges for a steak. If you don't value gourmet food items, don't shop at a gourmet/specialty food shop." Chop house is so over rated. Certianly isn't 3-4 times better than Outback.
BobbyJohn
Thu, Jul 15, 2010 : 9:04 a.m.
Morgan and York is not pretentious, just very expensive for food items. Way more for food than Big Ten was, even for the smae quality items. However their win prices are fair for A2. And the staff is eager to please (how is that pretentious)and many of them are knowledgeable.
Blicero
Thu, Jul 15, 2010 : 7:47 a.m.
Morgan & York is great. Saying that it's expensive and pretentious is like complaining that the chop house charges 3-4 times what Outback charges for a steak. If you don't value gourmet food items, don't shop at a gourmet/specialty food shop.. Can you find wine cheaper elsewhere? Of course, but they have to be able to pay for all of their employees to be wine & cheese experts somehow.. If you are throwing/attending a dinner party and you don't know what wine to bring, there is no better place to get you to the right bottle for the right price.. Not to mention that it classes up the neighborhood which as someone who owns a house a few blocks away I greatly appreciate.
Blicero
Thu, Jul 15, 2010 : 7:45 a.m.
Morgan & York is great. Saying that it's expensive and pretentious is like complaining that the chop house charge 3-4 times what Outback charges for a steak. If you don't value gourmet food items, don't shop at a gourmet/specialty food shop.. Can you find wine cheaper elsewhere? Of course, but they have to be able to pay for all of their employees to be wine & cheese experts somehow.. If you are throwing/attending a dinner party and you don't know what wine to bring, there is no better place to get you to the right bottle for the right price.. Not to mention that it classes the neighborhood which as someone who owns a house a few blocks away I greatly appreciate.
Rasputin
Thu, Jul 15, 2010 : 7:25 a.m.
Regarding Morgan and York. York was a principal founder of the ERC chain (back in the 80s)and later sold his stake to peruse a (limited) partnership with Ari and Paul's Zingerman's Deli. Later, he partnered up with Morgan to revamp the old Big 10 Party store. Are they expensive? Yes, it is a boutique store. Nothing wrong with that, if that is your cup of tea.
Gina Poe
Wed, Jul 14, 2010 : 10:05 p.m.
Laurie and Mick, above, agree: "How about turning the old Kroger at Georgetown into a skating rink with decent adult skate times on the weekend?!" Would there be room for Roller Derby? If so, sign me up! For the park, how about installing a big pond with paddle boats for rent in the summer and outdoor ice skating in winter? There is probably enough acreage for a community garden and sports fields, too. Let's hear it for Laurie and Mick's great idea!
Mike
Wed, Jul 14, 2010 : 7:26 p.m.
What the he'll does "that neighborhood" mean? I've lived there for 15 years and its a perfectly fine respectable, low crime neighborhood.
treetowncartel
Wed, Jul 14, 2010 : 2:41 p.m.
I think that Morgan and yoprk just has really big shoes to fill, there was no store like Big Ten, tons of stuff cramped into a little space. It is the complete opposite of that now. I'd be more worried about the environmental effects from the oil change, gas station and auto repair center than I would a dispensary.
Tom Teague
Wed, Jul 14, 2010 : 1:56 p.m.
Not sure why folks are piling on Morgan and York, but I just returned from there and, as always, found the staff very non-pretentious and engaged. It's a great place with an eclectic and quirky inventory and knowledgeable employees. Not everything there is in my price range, but the things that are are always good. And I'm supporting my neighborhood when I shop there.
krc
Wed, Jul 14, 2010 : 1:35 p.m.
Sorry, all. I shot off my mouth without thinking.
Lokalisierung
Wed, Jul 14, 2010 : 1:15 p.m.
"Their beer prices are significantly under market..." Hmmm....I'll have to look into that.
abc
Wed, Jul 14, 2010 : 12:55 p.m.
krc wrote that's exactly what I was thinking. It will have to be built like a prison. Bars on the windows, big time security doors, no access through the roof.... Lol krc. You mean like liquor stores, drug stores and even chocolate shops all of which sell highly desirable, and possibly addictive, goods. How will we control ourselves?
Bobby Glushko
Wed, Jul 14, 2010 : 12:52 p.m.
Agreed above. Morgan and York is a great store and a great asset to the community. Some things may be a little pricey there, but if you ask one of the staff members for help, they will be more than happy to find something that fits your budget and tastes perfectly.
rusty shackelford
Wed, Jul 14, 2010 : 12:20 p.m.
"Morgan and York is pretentious..." Actually it's not. The people there are very nice and they work with your budget. Tell them how much you can spend and they'll find the best thing in that range without trying to convince you to spend more. Their beer prices are significantly under market and their wine is right at standard prices for the vintages they sell. Oh, and last time I was there I had a conversation with one of the employees about how excited he is that Schlitz is under new management and back in 12 oz bottles. Pretentious? No, they just love what they do and want to sell quality products.
Lokalisierung
Wed, Jul 14, 2010 : 11:14 a.m.
"Morgan & York is a pretentious wine store. You can get the same or better at the Wine Castle without having wine clerks looking down their noses at you." It is terribly pretentious...I mean lab coats for employees...really?
Mick52
Wed, Jul 14, 2010 : 10:59 a.m.
I guess my thinking is just like Laurie Bloom's. I was thinking "park" for the old Georgetown mall site since it will likely be quite a while before its a mall again. As for Bgreen, good to see a move up. Bgreen has the best rain barrels on the local market. I have two from them and they are great. Very affordable, and the lid is removable for maintenance. I am still waiting for the call I was promised so I can buy more.... Anyone who considers themselves as "green" should have rain barrels on your downspouts.
JAM
Wed, Jul 14, 2010 : 10:46 a.m.
Blicero -- Fraser's is in a different zone. 1818 Packard is the only lot in zone C1.. the regs are different.
Blicero
Wed, Jul 14, 2010 : 9:40 a.m.
@krc - Great idea. I'm sure no one has thought of that before. I mean there are only thousands of dispensaries already in operation, but i doubt any of them have a security plan. :/. @JAM - Does a sports bar (Fraser's) count as "convenience goods and services?" Surely a pharmacy would be considered a business designed for "providing goods that are day-to-day needs," would it not? A dispensary is just a specific kind of pharmacy.
Ricebrnr
Wed, Jul 14, 2010 : 9:21 a.m.
Meh. The dispensary might as well be there, taxed and regulated. Hopefully this means I won't have to see any more suspicious dealings between interesting characters behind the DQ anymore.
Bobby Glushko
Wed, Jul 14, 2010 : 9:06 a.m.
Don't forget Quest Martial Arts. They're a tenant in the old Hollywood Video complex, and a fantastic group of people. Highly recommended.
Laurie
Wed, Jul 14, 2010 : 9:06 a.m.
How about turning the old Kroger at Georgetown into a skating rink with decent adult skate times on the weekend?!
JAM
Wed, Jul 14, 2010 : 8:48 a.m.
That little plot of land is zoned C1. Here's what the city code says: 5:10.15. C-1 Local Business District. (1) Intent. A business district designed solely to serve the needs of the surrounding residential neighborhood, providing goods that are day-to-day needs and are classed by merchants as "convenience goods and services." The normal spacing between these shopping districts is approximately 1 mile, and the total land area averages 2 acres. Businesses which might tend to be a nuisance to the immediately surrounding residential development are excluded, even though the goods or services offered might be in the convenience category or classification. The regulations are designed to permit development of the enumerated functions as limited by the standards designed to protect the abutting or surrounding residential land. To these ends, the regulations establish standards comparable to the standards for residential districts resulting in similar area, height and placement regulations. This obviously isn't to serve the needs of the surrounding neighborhood. This business does NOT belong in a residential neighborhood!!!!!
Bobby Glushko
Wed, Jul 14, 2010 : 8:45 a.m.
The dispensary has every incentive to be a good member of the community. It's not like people are predisposed to like a business that sells marijuana, so they will likely try to be the best neighbors they can. I doubt they're going to be more disruptive than the dairy queen/litter factory right down the street.
Brad
Wed, Jul 14, 2010 : 8:38 a.m.
Speaking of the incredible eyesore known as Georgetown Mall, there will be a meeting with the Mall Citizens group and City representatives tomorrow (7/15) 6-7PM at Cobblestone Farm.
Chris
Wed, Jul 14, 2010 : 8:31 a.m.
Craig, hit up Cake Nouveau, now located in the same strip as Morgan & York.
Mr. Tibbs
Wed, Jul 14, 2010 : 8:28 a.m.
sorry to burst the bubble. the housing market hasn't returned, and the latest threat you haven't been told about is the business real estate market about to tumble. you are all watching the wrong news affiliates. the stimulus funds are all that is keeping anything afloat right now. it is going to collapse. I warned about this. the rest of the nation will soon look like detroit.
Brad
Wed, Jul 14, 2010 : 8:18 a.m.
They missed Morty's Secret Garden. It's a smallish plant/garden place in the "alley" between Big Ten and the dry cleaner. He's from the neighborhood, and has been open 6-8 weeks. Nice plants and good prices. Morgan & York is a pretentious wine store. You can get the same or better at the Wine Castle without having wine clerks looking down their noses at you. But there is a REAL community treasure just across the street -- Frasers.
Rasputin
Wed, Jul 14, 2010 : 8:10 a.m.
A medical marijuana dispensary is exactly what the Pattengil and Burns Park neighborhoods need. Think of all the retired Professors! I hope, for the sake of Ann Arbor that they tax the heck out of it so we have some new revenue streams.
Bonsai
Wed, Jul 14, 2010 : 8:04 a.m.
what is it with these marijuana "businessmen" that they never want to give their names and/or be quoted in the media? extremely sketchy.
A2Woman
Sun, Jul 17, 2011 : 4:26 p.m.
David Ghezzi from Orland Park, Illinois is his name.
krc
Wed, Jul 14, 2010 : 7:51 a.m.
BigMike, that's exactly what I was thinking. It will have to be built like a prison. Bars on the windows, big time security doors, no access through the roof....
genericreg
Wed, Jul 14, 2010 : 7:48 a.m.
Yes, tell those people with unrelenting pain that they should find somewhere else to buy their natural drug that doesn't give massive profit to any of the giant drug corporations that sell things with full pages of side effects!
BigMike
Wed, Jul 14, 2010 : 7:32 a.m.
Mark my words - there will be trouble at the medical marijuana dispensary. This is not the kind of business that neighborhood needs.
Craig Lounsbury
Wed, Jul 14, 2010 : 7:31 a.m.
BTB is a community treasure, Morgan and York is a place to get a 40 ozer to wash down my giant burrito.
thomas h blaske
Wed, Jul 14, 2010 : 7:14 a.m.
Morgan & York is a community treasure. I think their orbit will help all prosper.
Rasputin
Wed, Jul 14, 2010 : 7:12 a.m.
You would think with all this growth and added diversity in the neighborhood, developers would be interested in purchasing and re-developing the Georgetown Mall into perhaps a multi-zone (commercial and residential) development. This seems like a no-brainer and would be VERY welcomed by the neighborhood who is tired of the existing blight.
Craig Lounsbury
Wed, Jul 14, 2010 : 7:06 a.m.
"At 1818 Packard, the former Aqua Tec store is undergoing extensive renovations to become a medical marijuana dispensary." After I pick up my scrip where will I get my donuts now that Paula's place is gone?