Cafe Tu Tu Tango helped put CocoWalk on the map, but the homegrown Miami restaurant chain won't be around to help anchor the center's revival plans.
Chairman Brad Weiser said Tuesday that the restaurant will be closing at the end of the month. Known for its artist's loft design and tapas menu, Tango opened in February 1991 as one of CocoWalk's original tenants.
But for the last few years business at Tango, CocoWalk and many places in Coconut Grove have suffered.
Weiser said business has declined about 25 percent since 2005, as customers who once came to Coconut Grove headed to Miami Beach, Coral Gables, South Miami, the Design District and more recently Mary Brickell Village.
''South Florida has so many great neighborhoods and destinations now,'' Weiser said. ``The Grove is still a great area, but there's a lot more to choose from.''
Yet, Weiser said he still wanted to keep Tango open and was trying to negotiate with the landlord.
That's where the story behind Tango's closing gets a little murky.
Weiser said his lease expired and he couldn't come to terms on a new lease that made sense in the face of his declining business.
''We couldn't reach business terms that made sense for both parties,'' he said.
CocoWalk's owner says they've tried to work with Tango. The restaurant hasn't been paying rent since last fall, and has a valid lease that runs until 2016, according to Mia Stierheim of Colliers-Abood Wood Fay, who handles leasing for owner PMAT Real Estate Investments. The New Orleans development company purchased CocoWalk in Sept. 2006 for $87 million.
''They still owe us back rent as required by the lease,'' Stierheim said. ``We weren't going to let them off the hook.''
Since buying CocoWalk, PMAT has been trying to upgrade the property, investing $7 million to give the center a face lift, including new lighting, landscaping and parking garage improvements.
The next step is bringing in new tenants to help breathe new life into a center that was once hailed as the industry's model for a successful retail entertainment center but had fallen out of favor. The new ownership has announced a number of new tenants including Muvico Theaters, Starbucks, Chili's and Full Bodied Wine & Spa. Some of the tenants will start opening as soon as next month, while Muvico will not open until October 2009. There are also several prominent vacancies to fill.
''We just seem to be on a roll,'' Stierheim said. ``We foresee having CocoWalk fully leased and back up and running within two years.''
The new owners wanted Tango to upgrade its restaurant and be a part of the property's rebirth.
''Right now the concept is just a little tired and not having the sales that other restaurants have,'' Stierheim said. ``It's unfortunate something could not be worked out.''
There is already a lease in negotiation with a new tenant to take the prime second-floor space overlooking Grand Avenue.
Stierheim says Tango's problems in Coconut Grove are part of a broader issue facing the chain and an overall plan to close the other remaining locations: one in Orlando and two in California.
Weiser says that's not the case and there are no plans for any other closings. Weiser once had six locations and ambitious plans for national expansion, but locations in Aventura Mall and the Atlanta area have closed over the years.
''Tango is still a viable brand and one that we will continue to look to the future with,'' said Weiser, who intends to look for another South Florida location. ``All our other locations are still doing well.''
Despite Tango's departure, some CocoWalk tenants are more hopeful now than they have been in years, as the new owner tries to make the center more attractive to baby boomers and families, not a young party crowd.
They can't wait for Muvico's opening. The AMC Theatre will close at the end of the year to make way for Muvico to begin construction on its premier megaplex with VIP seating, full-service bar and restaurant.
''Right now it's a little rough, but it looks like it's going to get a lot better,'' said Jesus Calderon, a sales associate at Edward Beiner, a high-end optical shop who has been in CocoWalk for about 10 years and recently saw a bump in sales since relocating as part of the re-tenanting. ``As long as they don't bring in any more bars with drunk people, we'll be fine.''
Not all the small businesses in downtown Coconut Grove can afford to wait things out.
''The Grove kept losing its customer base and rents kept going up,'' said Ric Almas, who closed his Haagen-Dazs ice cream store last summer in Coconut Grove after more than 13 years, but still has a store in Dadeland Mall. ``As much as I loved the Grove, business doesn't work that way.''
