The space of the former high-end grocery store Balducci’s on New Mexico Avenue will likely be divided up into AU offices, a gourmet Italian restaurant, a soup/salad shop and a yoga-related space, according to AU officials.
These tenants for the AU-owned 3201 New Mexico Ave., NW have not been finalized yet, according to Jorge Abud, assistant vice president for Facilities Development and Real Estate. The tenants should move in April at the earliest and February 2012 at the latest.
The space has been vacant since June 30, 2009.
AU wanted to offer an opportunity to other local businesses, including some women-owned businesses and neighborhood owners, according to Penny Pagano, AU’s director of Community and Local Government Relations.
“We used both financial and nonfinancial criteria. These are good businesses that will help the community,” Abud said.
Chef Geoff’s owner Geoff Tracy offered two proposals for the vacant space, a neighborhood market and gourmet sandwich/salad shop, both of which were ultimately rejected.
“I'm obviously disappointed,” Tracy said. “I’m a good tenant, been a tenant for 11 years, and pay my rent on the first of every month. My hope was my reputation and track record in terms of performance. I thought my connections to neighborhood might have resulted in at least a little more communication from AU in regards to getting the space.”
Tracy offered to pay $5 more per square foot than he currently pays for the adjacent Chef Geoff’s space, which is also owned by AU. The University wanted $55 per square foot for the new space, but Tracy said he was only willing to pay $43.
Tracy said his proposals were rejected without an explanation.
“When we get a number of proposals, we work and negotiate with the most competitive party. We don’t usually point out why we chose somebody else,” Abud said.
kfroehlich@theeagleonline.com
