In a candid, hour-long interview with a team from the Palisadian-Post, real estate developer Rick Caruso revealed that he expects Caruso Affiliated to begin construction on Swarthmore before the end of 2014.
This was just one of the many nuggets of information Caruso imparted on the afternoon of Friday, Jan. 24, when he and Post staffers strolled down Swarthmore and then settled in at one of the sidewalk tables at Maison Giraud for an exclusive interview to discuss his plans and vision for the street.
Caruso Affiliated is currently in escrow on the 2.77 acres of commercial property that had been controlled by the Palisades Partners. Caruso said that once the deal is closed, the Palisades ownership group will no longer be involved in any way.
The property includes the storefronts on the south side of Swarthmore between Sunset and Monument, the parking lot behind those buildings, most of the storefronts on the north side of Swarthmore and a number of storefronts on Sunset between Swarthmore and Monument.
During the interview, Caruso responded to queries on a variety of topics relating to the project – from its scope and scale to the likelihood of Trader Joe’s coming to the Palisades.
Before talking about what changes he has in store for Swarthmore, Caruso said, “Let’s talk about what the street doesn’t have. Unfortunately over the years it’s changed. It’s not a gathering place anymore and the buildings are run down.”
The empty storefronts and run-down condition of some stores didn’t deter Caruso from chasing the property. In fact, he revealed that he has been pursuing the property for more than 10 years, calling it a ‘labor of love.’
The billionaire developer who created the Grove, Americana at Brand and several other Southland centers said, “This may be a small property for us, but it’s also the most important. I think this is a once-in-a-lifetime opportunity, a very unique and rare opportunity to come into a community and reinvent a street and bring it back to life. In my world, that’s like landing on the moon.”
When told that some Palisadians are concerned that Caruso Affiliated will be creating a large-scale multi-use mall, Caruso said, “We’re not building the Grove. Whatever we do, we want it to feel like it fits right in, like it feels organic so [Swarthmore] can become one of those great American streets.”
In Caruso’s vision, creating a great American street means that everything on the street needs to work together – the trees, the lampposts, the sidewalks and the parking.
How will he accomplish this when some stores on Swarthmore aren’t included in the deal?
“My hope is to control the whole street. We have already talked to the other owners,” Caruso revealed.
Caruso elaborated that his firm has approached other contiguous property owners that were not included in the Village properties deal.
“There are no deals yet,” Caruso said of the additional properties. “Whether we own the whole street or not, we want to work with any other owners so the street feels cohesive. We would collaborate on the trees, sidewalks and more.”
In the developer’s mind, ‘cohesive’ does not translate into a unified look. He anticipates that every storefront will have different architecture that reflects the tenant.
As for the look and feel of the street, Caruso was recently quoted in the Los Angeles Times saying that he was envisioning Swarthmore as a ‘21st century Mayberry.’ In an article that appeared in a 2013 issue of the Post, Honorary Mayor Jake Steinfeld said he and Caruso talked about a ‘Main Street Nantucket’ theme.
According to the developer who is the father of four and has lived in neighboring Brentwood for 18 years, the design is still a work in progress.
“We want to rejuvenate [Swarthmore] with architecture that is in keeping with the scale of the street and that fits organically with the community,” he said.
Addressing some of the many rumors and chatter heard in the Palisades, Caruso clearly stated that his current plans for Swarthmore do not include residential, multiple-story buildings, turning the street into a pedestrian walkway or building anything on the rear parking lot.
There are no plans to knock anything down unless necessary for environmental reasons.
Changes that may occur include raising ceiling heights to create a higher façade, altering the street parking and widening the sidewalks to allow more room for walking and outdoor dining. Caruso does not anticipate needing any variances or zone changes from the City of Los Angeles.
When speaking about the challenges of transforming Swarthmore, Caruso pointed out that there’s a bigger picture at play here than simply rehabbing architecture.
“People want to live, work, congregate and socialize in their own neighborhood,” he said. His goal is for Swarthmore to be a focal point of life in the Palisades.
To succeed, the street will need to appeal to different generations.
“Mom and dad need to feel comfortable letting the kids pull the wagon down the street, there have to be shops for the family and there have to be restaurants for couples,” he said.
When asked if any of the current tenants will stay, Caruso said, “I’ll honor people’s leases.”
Caruso explained that he hasn’t had conversations with any of the current business owners because his firm doesn’t control the real estate yet.
Rising lease prices in the Village have been cited as part of the reason why so many stores are empty. Caruso’s properties typically have high rents, but he doesn’t think that will limit mom-and-pop shops from thriving.
“What limits them is no foot traffic,” Caruso said. “We know how to drive business. What I see happening here are events that bring people in. It makes no sense to have a rent structure that doesn’t make a business successful.”
When pressed about the types of businesses he envisions populating Swarthmore, Caruso said no tenants have been confirmed yet.
He is deploying a team to five or six cities around the country to scour retail centers and shopping streets for the most unique merchants who are doing something really special. National chain operations are not on his radar.
Specifically, Caruso mentioned a possible diner or deli, an establishment that would have a full liquor license and an ice cream shop. (See more on ice cream on the Kids Page in the Pali Life section.)
There has been speculation among Palisadians that Caruso would do the project in phases, starting on one side of Swarthmore then moving to the other side. Caruso quashed that rumor, saying, “I’m an all-at-once guy. I don’t do phases.”
As for a timeline, Caruso said it depends on how long it will take to solve the environmental problem caused by the former dry cleaner. He expects clean-up to begin by September or October and added that residents can speed the process by contacting the California Department of Toxic Substances Control.
“Building will start immediately after the environmental cleanup and closing,” he said. That will be cause for celebration, according to Caruso, who wants to hold a street party when construction begins.
Several times during the interview, Caruso emphasized that getting input from the community is key to the project.
When told that a poll showed that 74 percent of Post readers were in favor of a Trader Joe’s in the Palisades, Caruso said, “I think Trader Joe’s would be great. If something like that were going to happen then it could possibly be two phases, but I would like the option to do it all at once if the community’s behind it.”
A movie theater, which is on the wish list of many Palisadians, is not completely out of the question either. “A movie theater? I would love to do that,” Caruso said, although he admitted it would be a challenge.
“My number-one goal is that when we are done people will be very proud to walk down the street and say that this is part of my town. It’s so important to have the community behind us,” Caruso said.
To gain a better understanding of the wants and needs of Palisadians, Caruso Affiliated will be setting up community meetings to take place in February.
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