Case Study: Site Selection
The Knitting Factory Jazz Club: New York Cool Makes the Scene in LA
Michael Dorf, the owner of the successful Knitting Factory Jazz Club in New
York, wanted to expand his business to Los Angeles. He had been looking for
almost two years, when he was introduced to Ira Spilky & Associates by
one of Ira's satisfied clients. Michael wanted a low-key "back door" night
club with plenty of character, a site that might approximate the SOHO atmosphere
of his New York establishment.
Development Plan of Action
Ira began an extensive site search, showing Michael four sites in the area.
All were likely, but none were perfect. Then, Ira contacted one of the many
Hollywood/LA landlords he works with frequently. Ira knew of a closed restaurant
the landlord had available at the rear of an entertainment complex, the Galaxy
Hollywood, just a block from Grauman's Chinese Theater. Ira realized it might
be the perfect Knitting Factory location. Michael flew out from New York immediately,
and agreed that Ira had found the Knitting Factory its ideal LA site.
Win-Win Profit Result
Ira had helped create another Win-Win Situation for tenant and landlord. For
Michael Dorf and the Knitting Factory, it was a site of just the right size,
with just the right rent, and with the atmosphere the club required. Three
years later, the Knitting Factory Jazz Club in LA is a going concern. For the
landlord, the Knitting Factory represented the icon-status entertainment tenant
needed to complete the Galaxy Hollywood project redevelopment. In fact, Michael
put close to three million dollars into Knitting Factory renovations. That's
client commitment. This Win-Win Situation is working so well that landlord
and tenant are currently negotiating to open a Knitting Factory in a building
the landlord owns in San Jose.