Hawthorne Boulevard might be losing some of the gems that
make it one of the most recognizable streets in town: Several stores on
the boulevard are facing rent increases of over 50 percent, a leap to
what some call “Pearl District prices.”
The quirky street has long defined the aesthetic of the
Eastsideโfunky locally owned businesses with grungy hipsters
cycling past, crowned by the un-replicable Bagdad Theater. But down the
street from the Bagdad, Frank Nudoโowner of Nick’s Famous Coney
Islandโhas sold his building, boasting in the Oregonian about the millions he made on the deal.
But his building also houses Jackpot Records, Naked City Clothing,
and Bishops Barbershopโand some of these tenants aren’t exactly
smiling at Nudo’s good fortune. They’re grimacing at the huge rent
increase they’re facing from the new owners.
According to the letter of intent sent by the new landlords, the
rent for Naked City is increasing by at least 50 percent, and owner
Julian Mohaupt-Mayers is unsure of whether her store will remain in its
current location.
“Big changes are coming on the boulevard,” she said. Naked City has
been on Hawthorne for nine years.
Isaac Slusarenko, owner of Jackpot Records, is still in shock. He
hadn’t received any prior notice that the building was up for sale.
Slusarenko is unsure of the future of his Hawthorne store, but he
remains optimistic, he said in an email.
The Hawthorne Boulevard Business Association (HBBA) is concerned
with the effect rising rent rates have on small businesses.
“When rent gets increased to market levels, it’s a real obstacle for
small business owners to adjust to quickly,” said Karin Edwards, HBBA
president. Unfortunately, according to Edwards, there’s not much the
community can do.
The new landlords are supposed to be taking over Nudo’s building in
March, and have not yet offered the tenants official leases. However,
according to Multnomah County records, there’s a problem: Nudo hasn’t
paid taxes for the last four years and the building has gone into the
redemption program, the first step of foreclosure. Until Nudo pays
those taxes, the building cannot change owners. Nudo refused to comment
about the sale or closure of Nick’s. (And since the sale hasn’t been
recorded yet, the Mercury was unable to identify or reach the
new owners by press time.)