Swarthmore Unresolved a Year Later

At least half a dozen merchants in the 1000 block of Swarthmore have been in limbo for over a year now regarding their new leases with Palisades Partners, a multifamily trust which owns almost all of the 22 commercial properties in the coveted half-block of prime village real estate. The retailers first learned details about a proposed rent increase last March, which would see most of them paying almost double (from approximately $2.50 a square foot to nearly $5). At the time, several store owners said they simply could not afford the increase and feared they would be forced out of business. Another stumbling block was the length of the leases being proposed. Most of the merchants wanted to go from their month-to-month agreements to longer terms (from three to five years), with options to renew’since they have to bear the full cost of any improvements to their establishments. To date, the Palisadian-Post has been able to confirm that only two of the 15 store merchants involved in protracted negotiations with the landlord have signed agreements. Bob Benton, owner of Bentons The Sport Shop, which has been on Swarthmore for 23 years, signed a long-term lease last summer. Angelo Sambeat, who with his wife Cynthia has been doing business on Swarthmore since 1981, said he signed a five-year lease in the fall. The couple recently refurbished both of their restaurants’Dante’s and Atrio Cucina. In December and January, the landlord stepped up efforts to conclude other lease agreements, giving several merchants ultimatums to either accept the new leases or be replaced by more upscale retailers. However, the pressure appeared to ease this past month, fueling speculation that Palisades Partners is considering selling its commercial interests on both Swarthmore and Sunset. The Palisadian-Post sent a fax on Monday to Robert Stelzl, one of the three trustees, asking him if the properties are available for sale, as well as the status of the lease agreements, but as of our Wednesday deadline we had received no response. Meanwhile, Palisades Beauty Supply and Michele International, both owned by the McCrory-Irwin family, have not yet signed a new lease, even though they recently completed a remodel of their hair salon at their own expense and with the permission of the landlord. Roy Robbins, incoming Chamber of Commerce president, is still waiting to sign a lease for his gift and stationery shop at 1030 Swarthmore. Although he talked with the landlord about the possibility of downsizing his current space, he said he has recently heard “nothing” about this. While Ivy Greene has secured a long-term lease for Rumours, the girls clothing store she opened with Palisadian Ceci Dean last September at 1014 Swarthmore, she is still working on an agreement for her adjacent children’s store at 1020 Swarthmore. Also still without leases are the owners of the Prince’s Table, Village Books, and Terri’s Restaurant. Unknown at this time is the lease status of Palisades Playthings, Mort’s Deli and the adjoining Oak Room. While Palisades Partners took back about 500 sq. ft. adjacent to the Oak Room last October, which was being used by owner Bobbie Farberow as an office, the space is still unoccupied. The only other storefront available on Swarthmore is the former Emerson-LaMay Cleaners at 1045 Swarthmore, which has been vacant since April 2003. A la Tarte at 1037 Swarthmore is not seeking a new lease. Owners Bert and Bonnie Yellen put their popular French restaurant on the market last September. The bistro is still for sale.