California Apparel News

The junior apparel business is taking a new direction in downtown Los Angeles. Buoyed by the success of the San Pedro Wholesale Mart, a new mini-boom of wholesale-showroom construction is occurring on the Fashion District’s eastern fringes. The primary benefactor is the junior apparel business, as local manufacturers and importers move in to capitalize on demands for fast-turning fashions and immediate deliveries.

The scene on busy San Pedro Street and neighboring Crocker Street is quite different from the polished lobbies of the California Market Center, The New Mart, the Gerry Building and the Cooper Design Space a few blocks away. Many of these wholesalers deal in “cash ’n’ carry” business and supply mostly immediate goods. Many operate in strip-mall-type buildings and open their showrooms to the public on weekends. They sell primarily to discounters and international buyers, but they are seeing more department- and specialty-store buyers.

“The buyers that come here tell us they are seeing quality that’s better than what is at the California [Market Center],” said Simon Cho, owner of G-Girl showroom on Crocker Street, which sells locally produced tanks and tees for young women.

“It’s definitely taking some business away,” said Mark Warman, who runs a junior apparel showroom Dress Me Sales in the CMC. “They are mainstream now. They’re selling to everybody.”

Cho explained why the area has become a draw for retailers: “The advantage is that we have a lot of immediate deliveries. Customers can come in and get their merchandise right away. A lot of the wholesalers around here are doing good business with the department stores now.”

For many retailers, the prices are also attractive. Prices for novelty tanks and tees at Cho’s store, for example, run from $5 to $10.

Cho recently opened his showroom on the Crocker Street corridor, an eight-block stretch just east of San Pedro Street. He said he expects traffic to boom as new construction advances.

The developer of the 8-year-old San Pedro Wholesale Mart is building a sister complex, the San Pedro Wholesale Mart Annex, at 1127 Crocker St. The annex building, which was formerly a manufacturing warehouse, will contain almost 70,000 square feet of showroom space and about 120 units. The complex is scheduled to open Aug. 31.

This project is only the beginning. A three-story building at Crocker and 12th streets, which will contain womenswear showrooms, is under construction and will open this fall. Another project at San Pedro Street and Pico Boulevard will contain wholesale and retail space when it opens this fall.

“There are few vacancies in the area—that’s why you’re seeing all this,” said Kee Kwon, a leasing director for San Pedro Properties, which manages the San Pedro Mart.

Most of the new centers will house womenswear with an accent on junior apparel. Showrooms on San Pedro Street carry names like Salsa, Miss Me, Prophecy, Novelty and Be Cool. The fast-turning, trend-driven junior business is a good market for the San Pedro–area wholesalers, which bring in new items regularly and cater to trends on retail selling floors. Everything from denim to outerwear is available in the area.

Many of these new projects being sold as commercial condominiums allow tenants to actually become owners of their spaces, which usually start at about 600 square feet.

“You see this a lot in Southeast Asia,” said Kent Smith, executive director of the Fashion District Business Improvement District (BID). “Just like you would want to own your own home, these businesses want to take advantage of the rising cost of land.”

Leasing opportunities are also available. Dak Realty is offering 2,000-square-foot showrooms for about $2 per square foot on San Pedro Street. Commercial condo prices in the new San Pedro Mart Annex start at about $4 per square foot for spaces that range from 600 to 2,500 square feet, Kwon said.

Most of these properties are located in enterprise and empowerment zones, which means they qualify for tax credits, easy financing and other incentives.

The area has grown so much that the Fashion District BID is currently in the process of annexing the Crocker Street corridor so it can receive cleaning and security services.

Area property owners stood up recently to Fashion District officials and attempted to start their own business improvement district. The owners felt they were not getting the same representation as the district’s main hub. Those differences, which concerned how the Fashion District BID board is elected and how money is spent, have been resolved.