Tenant influx helps revive retail hub at interchange
Grocery Outlet among new businesses at Marin Square
Grocery Outlet opened this month at the Marin Square shopping center in San Rafael, filling one of the larger spaces in a complex long beset by vacancies.
The market, which bills itself as an “extreme-value grocery retailer,” fills an 18,500-squarefoot space that was previously split into two storefronts. One was most recently occupied by the Wherehouse music store and the other by an Aaron Brothers frame shop, which closed in 2018.
“We’re really excited that the center has some new life,” said Kaylin Alexandra, a spokeswoman for the Chelsea Pacific Group, a Tiburon-based investment firm that bought the mall for $29.75 million in 2018.
The firm is nearing completion on a $1.2 million renovation of the center that began last year. The work includes an exterior remodel of the buildings and interior upgrades to several of the storefronts and office spaces on the property, Alexandra said.
“The city is excited to see the developer’s thoughtful investment and renovations come to life at Marin Square,” said San Rafael Councilwoman Maika Llorens Gulati, whose district includes the nearby Canal neighborhood. “Marin Square is a fantastic location where two freeways intersect with main local roads.”
The 11.32- acre center at 75
Bellam Blvd., at the junction
of Highway 101 and Interstate 580, was mostly vacant when Chelsea Pacific bought it from Sacramentobased Sut ter Health. At the time, a Ross clothing store, a Payless shoe store and a Subway sandwich shop were among the only businesses in the complex, which also includes a 20,000- squarefoot office building. Sutter purchased the complex in 2010 with plans to open medical offices there, but the development never happened.
Under the center's new ownership, several retailers have moved in, including Home Consignment Center and Sally Beauty. The complex also includes a dry cleaner, a hair salon and a taqueria.
“This is just phase one,” Alexandra said. “This is just the beginning of what's going to be happening there.”
Two more vacancies will be filled in the coming months, Alexandra said. A chiropractic clinic called The Joint and a restaurant called Pho Noodle House are set to open early next year, she said. Chelsea Pacific is in advanced negotiations with three other businesses that are eyeing spaces in the complex, according to Alexandra.
Grocery Outlet opened on Dec. 10.
“We've been busy,” said Edwin Perez, who runs the store with his brother Jonathan.
The brothers were raised in San Francisco and recently moved to San Rafael's Canal neighborhood for the grocery venture. Their sister Jennifer is store manager and their father Edwin Perez Sr. manages the produce department. Each Grocery Outlet location is independently operated, the company said.
“It's a little bit interesting with social distancing, but people are very understanding,” Edwin said, noting that grocery stores must operate at reduced capacity under California's regional coronavirus stayat-home order.
Grocery Outlet seeks out excess inventory and seasonal closeouts from manufacturers and buys products at reduced prices, according to a company announcement. The store then “passes those savings on to our customers,” Perez said.