The company behind the mythical navigator who sails the seas looking for intriguing food and uncommon goods, Trader Joe’s, is seeking to expand its Monterey territory. Specifically, it is planning to take over the space next door once occupied by the now-defunct pharmacy chain Pharmaca, which sits on top of land owned by the City of Monterey at 570 Munras Ave.
All 22 California Pharmaca stores closed in February, after mega-chain Walgreens acquired Pharmaca’s parent company, Medley Health. On July 20, the City received a request from shopping center owner ROIC Monterey LLC to consent to the expansion of Trader Joe’s, currently just over 11,000 square feet, into the 3,790-square-foot Pharmaca space, according to a report to the Monterey City Council on Aug. 1.
ROIC Monterey also asked that the Trader Joe’s sublease be extended by 10 years, from the date the new lease goes into effect. The council voted in closed session agreeing to the expansion as well as the lease extension.
The site originally held a Safeway grocery store beginning in 1951. Its lease was due to expire in 2006, prompting the city to issue a request for proposals in 2003. The city continued negotiating with Safeway representatives, but by 2005 couldn’t reach an agreement. Trader Joe’s made a bid and won.
The city signed a ground lease in 2006 with the development company that rebuilt the shopping center, with a condition that the city must consent to any sublease.
Currently Monterey receives a little over $300,000 a year in lease payments from ROIC, which in turn leases to Trader Joe’s and other stores and restaurants in the center.