Marietta small businesses say new landlord is pushing them out

Oct. 4—MARIETTA — Lenny Thompson has been cutting hair and trimming beards at his downtown hair salon for the last eight years. Now, Lenny's Hair Salon at 95 Church St. just off the Square, is one of several businesses facing an uncertain future with a new landlord.

In late January, Atlanta-based real estate firm Bridger Properties purchased over four acres of downtown Marietta properties for roughly $17 million from the Eubanks family. The purchase included about 97,000 square feet of retail and office spaces made up of Church Street storefronts (Thompson's salon included) and the historic Marietta Station warehouses-turned-office buildings.

Rising rents and expiring leases

Now, Thompson is facing an ultimatum. He told the MDJ his lease ended in August, though there was an option to extend it for another year. He got in touch with Bridger 10 days before his lease was set to expire Aug. 31.

"They told me that I had missed the deadline to take my option, and that they had other plans for the space, they were wanting to make it food and beverage capable," Thompson said.

Thompson said he heard Bridger Properties "had been increasing rents pretty heavily in the Marietta Station," located behind the Church Street storefronts.

Several businesses have shared similar stories with the MDJ, but requested anonymity due to fear of reprisal.

The MDJ reached out several times to Bridger Properties but was unable to have a conversation with company officials. One of the company's co-founders and principals, Merritt Lancaster, provided the following written statement to the MDJ:

"Bridger Properties is thrilled to be a part of Downtown Marietta. As a small business ourselves, we understand the importance of a supportive community. We continue to work with new and existing tenants at Marietta Station to create a unique and vibrant experience. We will have some exciting announcements to release over the next few months, and can't wait to share the news with the community."

Positive development?

Wendy Bunch has been on Church Street longer than most in the Bridger block. Since 2010, her real estate brokerage has occupied the storefront at 93 Church Street. With 42 employees in about 1,200 square feet of space, Bunch, like other tenants around her on Church Street, has made the space her own through renovations and upgrades.

After being notified by email a couple of months ago that Bridger would not renew her lease, Bunch broke down in tears. She is still hurting for the community of small business owners that, like her, have made Church Street home.

"My understanding is that the vision that they have is a great outlook," Bunch said. "What they want to do or the thoughts they have, I think the intentions are good. I think that the way the whole thing has gone about has just disrupted the people that support local."

Bunch added that tenants in the Marietta Station building, some of whom have had offices there for more than 30 years, are moving out as Bridger is doubling or even tripling their rents.

Bunch is concerned the small town charm offered by Church Street would disappear should Bridger bring in restaurants along the street, a rumor swirling among the buildings' current tenants.

"You line Church Street with food and beverage: where is everybody going to park?" Bunch said.

Bunch, being in real estate, understands Bridger "paid a nice price" for Marietta Station and the Church Street retail spaces and has total say over what happens. Yet it still hurts her to know established businesses are being forced out to make way for that vision.

"It's unfortunate that it's just displacing so many people and so many small businesses and so many people that are so good and supportive to the Square," Bunch said.

'We didn't want to leave'

William Middleton and his gym, Fitness Marietta, are more recent arrivals on Church Street.

Middleton moved his family-owned fitness studio into the space at 87 and 91 Church Street in November. Classes had begun there just a month before Bridger purchased the property in January.

Less than a year later, Middleton starting hearing rumors from nearby tenants of Bridger's plans for the property, which he said included opening a grocery store of some sort where his gym is located. He and his attorney, Ed Hallman, contacted the building's new owners.

When it became clear during ensuing negotiations with Bridger that his gym was not part of its future plans, Middleton bought out of his current lease and began looking elsewhere. His agreement with Bridger stipulates he will be out of Church Street by the end of November.

"It's been a great ride, and unfortunately, they, from what we know, have preexisting plans for the space, and renewing our contract doesn't appear to be an option," Middleton said.

Hallman said he and his client were neither "bitter or horrified" by the negotiations.

"I think we could've been really bothered if we hadn't been able to find a place," Hallman said.

Middleton was able to find a space nearby, at 305 Cherokee Street, and he said he will even be able to expand his gym in the new location, which he would not have been able to on Church Street.

"We think the buyout was reasonable, if it had to be," Hallman said. "We just regret losing that place in the Square and all that comes with being right on the Square."

"We didn't want to leave," Middleton added.

Bridger also reached an agreement with Thompson, allowing him to remain in his storefront until the year's end, though he expects a rent increase will force him out by the start of next year.

"And then I could stay January, February, March, but my rate would more than double," Thompson said.

In other words, Thompson's rent would be month-to-month beginning in 2023, and the rates, he said, would increase significantly from what he has been paying.

Thompson would also like to stay, but if he is forced to move his business, he hopes to find somewhere near the Square.

"Other than the lease problem, things have been great," Thompson said. "We love the space we're in, we love being in the Square, doing our best to try and stay on the Square, trying to find a new spot, but ... it's very limited."