California Apparel News

New management prepares for first market, coming changes

Los Angeles Fall II Market Week at the California Market Center gets underway on June 10, following the recent handover of building ownership to Jamison Properties, with a new management team in place.

The new staff is a blend of several longtime CMC executives and employees, several longtime Jamison executives and employees, and a few new faces.

The seven-month escrow process left plenty of time for speculation about the new owners and possible changes to the CMC, which has been a central hub for the fashion wholesale business since the first of its three buildings was erected in 1966.

Heading up the new team is General Manager John Kim, an eight-year veteran of Jamison Properties. Kim said the CMC differs from many of the company’s other properties because it is a marketplace with a long-standing reputation.

“CMC has been an icon,” Kim said. “It has a deep-rooted reputation that makes it a destination for retailers. This building houses over 900 showrooms with a myriad of different categories. The buyer can come to the building, park here and pretty much fulfill their shopping list in one [place] without having to go to different buildings.”

The new team plans to capitalize on the building’s one-stop shopping by expanding the gift segment and looking for more cross-merchandising opportunities between gift and apparel tenants, Kim said.

The team will also look for opportunities in temporary trade shows, including possibly opening up some of the showroom space in the A wing of the 13th floor to create exhibition space. The floor currently features a mix of showrooms in the A and C wings and an open area in the B wing.

But Kim pointed out that any additional temporary exhibition space and temporary trade shows will have to support the permanent showrooms.

“For the most part, the California Market Center exists because of our permanent showroom tenants,” he said. “The temporary spaces that CMC supports is to create activity for the benefit of the permanent showroom tenants. The fashion theater, exhibit hall and the 13th floor combine to [about] 160,000 square feet. The largest contiguous space is on the 13th floor, with probably 40,000 square feet.”

Another possible upgrade involves the building’s exterior, Kim said. “We need to improve the exterior presence of the building,” he said. “The first impression one gets of the building is very, very important.”

Equally important is the interior signage, he said, adding that it should help retailers navigate the center.

Other possible upgrades include completing third- and seventh-floor renovations and determining an appropriate tenant mix for the newly renovated 2A showrooms.

The building also plans to continue working with the new tenant advisory board, as well as with The Intersection, the alliance between the CMC, The New Mart, the Cooper Design Space, the Gerry Building, Designers & Agents and the Fashion District Business Improvement District, Kim said.

“The Intersection has given a lot of cohesiveness and positive working cooperation in trying to better the Los Angeles apparel industry as a whole,” he noted. “We are happy to be a part of that.”

The Intersection, and in particular, Ed Mandelbaum, co-creator of D&A, were helpful in setting upcoming market week dates, Kim noted.“For the most part, the apparel sector has had really good momentum,” he said. “We want to sustain the momentum and continue to build [on it].”

New responsibilities in leasing

Jamison executive Ben Lee stepped into the role of director of leasing. He will handle leasing for the menswear and textile categories, as well as for retail, office space and space in the Mart South building on Olympic Boulevard. He will also be assisting Kim with his general manager duties.

“It’s hard to formalize my position there, but I’m helping John out with his general manager duties,” Lee said. “I have my hand in everything. I see what’s going on in marketing, retail relations, trade shows, even down to finance. I have a full plate.”

Lee has been with Jamison for the past three years, during which time the company’s portfolio has grown from about 25 office buildings to more than 100 buildings, including office, medical and retail properties. Prior to joining the CMC, Lee was managing Jamison’s West Los Angeles portfolio.

“But on the fashion side, I wouldn’t say it’s a whole new gig for me,” he said, explaining that his mother, Kacy Choe, has worked in the Los Angeles textile industry for the past 20 years as president of GMA Textiles. “I definitely got a taste of the industry,” he said.

Assisting Lee in leasing are returning executives Sue Bhanubanbh, Jennifer Jordan and Charlie A. Snyder. Bhanubanbh, a longtime member of the leasing team, will oversee the women’s contemporary, young designer, accessories, immediate goods, intimate apparel and retail services categories, as well as the Otis School of Art & Design on the building’s second floor. Jordan, another longtime leasing team member, will oversee the better contemporary, updated, missy, juniors and childrenswear categories. Snyder, who joined the CMC when it opened the gift and home category, will continue to oversee those resources.

“Our plan here is to bring energy and life back to the building,” said Lee, who noted the first step is to bring in new retail tenants on the lobby level and second floor.

“We’d like to see stronger tenants that can provide an array of services. We’re looking at national tenants and we’re looking at some food vendors right now. We’re brainstorming some cool ideas to make the lobby a fun place to visit, to shop and to give our tenants the support and services they need.”

But the new management’s efforts to revamp the lobby have some of the existing lobby tenants worried that rents for their spaces will soon be on the rise. The lobby’s retail mix includes banks, restaurants, general merchandise and gift stores, accessories stores and a FedEx center and photo development shop. For many, business is cyclical, booming during markets and waning in between. Plus, because the building’s retail stores are closed on the weekends and there is little non-industry traffic, the retailers are dependent on a regular, limited clientele.

Lee said rents are not being raised but said instead they are being evaluated and “standardized.”

“Regarding our retail tenants, we’re moving to create standard rates throughout the building that are in keeping with market values,” he said. “It’s a question of being in step with the rates and values a prime facility like the CMC commands.”

CMC managers will continue efforts to strengthen the building’s gift sector, which has seen some tenants return to nearby gift and furniture center the L.A. Mart. Multi-line gift showroom Firestone Marketing Group will shutter later this summer when showroom owner Dick Firestone retires from the industry. The lease for the showroom, which has been open for four years, ends in September, according to Snyder.

Another area due for a makeover is the fourth floor menswear section, where footwear and athletic apparel brand Puma recently signed a lease for a showroom. Lee said plans are underway to upgrade the section’s common areas with new lighting and paint. The CMC is also looking into replacing the showroom entrances with all-glass fronts to give the floor an updated look.

Lee also said management is discusssing piping music in to individual floors. Currently, only the lobby and the fifth floor are wired for music.

On the operations side, Lee said there will be few changes under the direction of Jamison executive Eugene Kim.

“We’re tightening things up; we’re cleaning up,” Lee said. “I think with Eugene Kim, our new operations manager, he’s got a tight lock [and] he’s very thorough. We’re very comfortable with operations.”

Marketing and retail relations

Two new additions to the CMC staff are Joanne Lee, director of marketing, and Jonas Walker, manager of retail relations.

For the past year, Lee has been working on acquisitions for Jamison Properties, but she shifted to marketing after the company purchased the CMC. Her current focus is on the building’s new marketing campaign, which will bow for the August market week, and the e-mail campaign, a program started by the previous owners. The e-mail campaign will disseminate tenant, market and trade show news.

Lee said her department will also work to support the crossover marketing for the gift and apparel sectors, continuing the previous management’s efforts to position the CMC as a lifestyle marketplace.

“We definitely want to make it a more coherent story, using gift and home and fashion,” she said. “That’s where the industry is heading, and we are the only building that can specifically offer that.”

New Retail Relations Manager Walker comes to the building from MAGIC International, where he worked on the streetwear, men’s and women’s contemporary streetwear, and urban categories. His background includes retail management and visual merchandising for such Los Angeles stores as Ron Herman on Melrose Avenue and in Brentwood and Kitson on Robertson Boulevard.

Walker stepped into the position less than one month ago and is currently reviewing past efforts at retail relations and exploring new ideas.

“We have a big audience that we have to cover,” he said. “We are trying to make it special for every niche market.”

Trade show development

New Trade Show Director Yvette Beltran is both a new executive and returning CMC staffer. Beltran was manager of the Los Angeles International Textile Show but left the CMC earlier this year. The new owners recently brought her back with increased responsibilities. She will now oversee all of the building’s temporary trade shows, including the textile show, the Los Angeles Shoe Show, the Los Angeles Majors Market and Brighte Companies. She will oversee the International Swimwear/Activewear Market show, which will return to the CMC in October after a three-year hiatus, and new print and artwork show Prelude, which will bow in August. And she will look for new trade show opportunities, as well as opportunities to strengthen the CMC’s existing trade shows.

“There’s a lot of potential for growth,” she said. “We’re looking to reach different audiences. For example, for the shoe show, we’d like to bring in more contemporary companies. In textiles, we’re looking to bring in more international companies from Europe and Japan, as well as more made-in-California fabrics.”

As far as new trade shows are concerned, Beltran said she is working on a few ideas, although she declined to give any details.

“We want to make CMC an event center for the fashion industry,” she said.

CMC’s longtime executives

The new CMC team’s longtime staffers include leasing directors Bhanubanbh, who has been with the building for 21 years, and Jordan, who has been with the building for nine years. New Trade Show Director Beltran has worked for the center for 11 years, and Maral Baboomian, manager of the directory office, has been with the facility for 16 years. Gilbert Cabrera, manager of facility sales, is a 20-year veteran of the building, and Sue Cosentino, administrative assistant and receptionist, has been with the building for 22 years.

“We have people who have been here for many, many years to be able to advise us in a way that’s consistent and structured,” John Kim said. “We’re really happy with the staff that’s been here mixed with the new staff. I feel it’s a really good team.”

Meet the CMC

General Manager: John Kim Leasing: Ben Lee, director of leasing (including men’s, textile, retail, office space and Mart South)and assistant general manager

Sue Bhanubanbh, director of leasing (including women’s contemporary/young designer, accessories, immediate goods, intimate apparel, retail services and the Otis School of Art & Design)

Jennifer Jordan, director of leasing (including better contemporary, updated, missy, juniors and childrenswear)

Charlie A. Snyder, manager of gift and homeTrade Shows:Yvette Beltran, director of trade shows

Heather Wurst, show manager of the Los Angeles Majors Market and the Los Angeles Shoe Show

Donna Hempel, trade show managerMarketing:Joanne Lee, director of marketing

Jacki Riggs, marketing and communications manager

Julie Lee, manager of special events

Maral Baboomian, manager of the directory office

Arturo Diaz, marketing associate

Deirdre Mendoza, consultant, public relations and marketingRetail Relations:Jonas Walker, manager of retail relationsInformation Technology:Eugene Lee, manager of information technology

Augie Gutierrez, manager of information technology Operations:Eugene Kim, manager of operationsFacility Sales:Gilbert Cabrera, manager of facility sales Reception:Sue Cosentino, administrative assistant and receptionist(Although many of the CMC staffers share the surnames Lee and Kim, none are related.)