Bayside Marketplace operator sues Hard Rock, Bubba Gump for not paying rent
Bayside Marketplace has filed suits against Hard Rock Cafe, Bubba Gump Shrimp, and three other national chains for not paying rent at the downtown outdoor shopping center.
The suits, filed separately over the course of the past two weeks, suggest Bayside owner Ashkenazy Acquisition Corp. can no longer withstand the financial shock sparked by the coronavirus pandemic.
In a statement, Ashkenazy said it would not comment on pending legal matters.
“Bayside Marketplace has worked closely with tenants through these unprecedented times to identify solutions based on individual business needs,” an Ashkenazy representative said in an emailed statement. “This includes helping more than 50 Bayside Marketplace tenants access additional public or private financing. The majority of tenants have worked with us to meet obligations that will sustain a vibrant business community at Bayside Marketplace. We will continue to do everything we can to accommodate tenants.”
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Bayside’s first suit for back pay was filed June 19 against Bubba Gump, owned by Houston-based Landry’s Inc., for approximately $107,000. It went on to file suit against the four other tenants, with the largest claim against Davie-based Hard Rock International for payments totaling $337,912.89. The other tenants facing lawsuits are Express, U.S. Polo Association and Shoe Palace Corp.
A representative for Hard Rock did not immediately respond to comment.
Through its Bayside holding, New York-based Ashkenazy pays between $1 million and $2 million annually to the city of Miami, while maintaining control over relations with tenants.
Ashkenazy is facing its own financial pressures. In April, the Boston Globe reported that Ashkenazy’s response to a request for rental assistance from merchants at Boston’s famed Faneuil Hall, which Ashkenazy also operates, was, ““We are not in a position to relieve you from your lease obligations.”
Eventually, Ashkenazy agreed to a one-month rent abatement with Faneuil Hall tenants after Boston Mayor Marty Walsh directly intervened.
A representative for Miami Mayor Francis Suarez could not immediately be reached for comment.
The Miami lawsuits might not signal the imminent exit of the retailers from the mall, said DWNTWN Realty Advisors co-founder and managing partner Tony Arellano.
“Tenants sometimes take a lawsuit to negotiate rent, but it depends on the landlord. Sometimes the landlord will hike rents if they want to change the mall,” he said.
Retail vacancies are anticipated to increase in the quarters to come. But according to DWNTWN co-founder and managing partner Devlin Marinoff, Bayside remains an attractive property that will continue to bring in quality tenants. “The good real estate is going to get better. The bad real estate is going to get worse. Bayside, the Design Design and Wynwood ... will attract retailers.”
At the same time, other Bayside tenants are wondering whether they’ll be next to face suit. Rafael Wong, executive director of the Miami-based Los Ranchos Steakhouse chain, said he has not been able to reopen since the start of the pandemic. He said he has made two offers to Ashkenazy that he felt would help keep the company maintain its lease, but that neither were accepted.
“The way it’s looking, there are probably going to be multiple empty spaces,” Wong said. “I’m not sure who’s going to fill them any time soon.”
This story was originally published July 9, 2020 at 7:00 AM.
