Vacancies dotting Durango’s prime commercial real estate avenue will soon reduce now that new tenants have signed leases to occupy two of the three spaces within the old Francisco’s Restaurante y Cantina building at 619 Main Ave.
Broker John Wells of The Wells Group said the contracts were finalized on a new restaurant and retail clothing business.
Francisco’s, a 45-year fixture on Main, was sold in 2013 to new business owners who closed the restaurant unexpectedly in November the next year, creating a buzz among Durangoans who frequented the establishment.
Francis and Claudine Garcia maintained ownership of the building and subsequently listed it with a $3.2 million asking price. But the empty structure didn’t appeal to investors, so the former restaurant was taken off the market and the owners instead decided to re-configure the single, 11,000-plus-square-foot building back to three separate storefronts as it was in the 1980s.
The third, largest space within the building remains unoccupied.
“There’s more activity now that we broke the building up into three spaces,” Wells said. “In Durango, for the most part, there is a lot more demand for space under 3,000 square feet because of the cost of occupancy, and the larger the space, the more sales you have to have for your product. The majority of restaurants in Durango are smaller. Just from the operational perspective, it’s easier that way.”
Owning or leasing a storefront on Main Avenue, where a Durango business venture stands to find the most success, comes at a high price, which likely accounts for the empty spaces between the 600 block and 1300 block.
“It seems that the closer you get to the train, down by the Gaslight, the price bumps up,” Durango Area Association of Realtors President Jerome Bleger said. “The further you are from that, the price goes down. I think that’s based a lot on visibility and foot traffic.”
Though the property owners say they no longer intend to sell the building, the owners of Diorio’s South Pizza say the business may soon be changing hands.
Declining to disclose details, Krishna Ruddick told The Durango Herald she had an interested buyer who intends to maintain the Diorio’s brand.
The building at 600 Main Ave., which houses several businesses including Diorio’s and the Balcony Bar & Grill, is owned by Bleger’s family. Last year, the building, valued between $2 million and $3 million, was temporarily listed, but Bleger said his family decided against selling.
After 11 years in business, the Lost Dog Bar & Lounge at 1150 Main Ave. closed its doors last September after the business owners decided against renewing the lease – purportedly unable to reach an agreement on the price with the property owner.
The monthly leasing price is $7,330 for the 39,098-square-foot space. It’s a triple net lease, which means the tenant pays all expenses on the property including taxes, insurance and utilities.
Realtor John Andrews said the rate is market price, yet it would take a successful business venture to be affordable.
Andrews said there are no pending negotiations on leasing the space, which has been on the market for about four months. A hard apple cider brewer expressed interest after the property was listed, but the deal fell through.
“Deals like this always tend to be complicated because they require a large capital investment for equipment,” Andrews said. When Lost Dog vacated, all the restaurant equipment went with it. “I think it’s an area that’s starting to grow and come into its own in the past couple years.
As opposed to further south on Main, there’s always parking in the 1100, 1200 blocks, which is a real benefit.”
Another prospective leaser is looking at the Lost Dog property, but Andrews declined to disclose details about the business.
Depending on the size, location and condition of the space, rates per square foot between 500 and 1300 Main range from $13 per year to $40 per year.
jpace@durangoherald.com
No shortage of Main Avenue office space
There’s ample office space in the 1000 block of Main Avenue.
One space at 1073 Main Ave. has been listed about a month. Broker Christina Rinderle of Durango Land and Homes said an investor has made an offer on the $850,000 listing.
The lease is through the Colorado State Patrol office and is not subject to property taxes.
Another retail space is for sale for $400,000 at 1077 Main Ave., where Velorution Bike Shop was formerly located. The space has been on the market about a month.
There are three suites for rent at 1099 Main, ranging from $1,200 to $1,750 a month. Two of them are for sale at $215,000 for a two-office suite and $349,000 for a three-office suite.
Rinderle said more will be available for sale and rent after the first quarter.
jpace@durangoherald.com.
