Downtown’s Container Park: A good fit for all businesses?

Ten days ago, Mark Rowland met with the owner of a struggling business at Downtown Container Park.

It's unclear whether the third-level eyeglass store, Monocle Optical, will survive. The owner, Eric Healey, was nearly $9,000 and several months behind in rent and Rowland, DTP Ventures CEO overseeing Container Park and other Downtown Project business properties, had thrown the 32-year-old rookie business owner a lifeline.

Rowland arranged for Healey to work with local marketing consultant ROCeteer for four weeks this month to see whether the business could be salvaged or whether the owner should leave Container Park and perhaps run the eyeglass business at another location.

Each business at Container Park, Downtown Project's signature stronghold, has its own story. Tony Hsieh's Downtown Project launched Container Park with the goal of making it a safe urban haven for families and a place for visitors to eat, drink, shop and explore. Hsieh's Downtown Project is a $350 million redevelopment initiative to infuse new life into the East Fremont corridor from the Fremont Street Experience to Maryland Parkway.

Besides being home to 38 small businesses housed in repurposed shipping containers, Container Park is also known for its flame-throwing, music-playing, 40-foot-tall praying mantis that greets visitors at the 707 E. Fremont St. entrance; the large children's playground in the center of the site; and a stage area that has hosted the likes of singer Sheryl Crow.

Rowland said the downtown outdoor hub, which celebrates its second anniversary on Dec. 5, has drawn 2.6 million visitors, including 26,000 strollers, since it opened.

The Downtown Project-backed restaurants and bars such as Bin 702, Oak & Ivy, The Perch, Big Ern's BBQ and Cheffini's hot dogs are doing well, Rowland said.

Mixed results

Container Park businesses have realized a variety of success levels.

In Healey's case, he said there has been a lack of foot traffic on the third (top) level and revenues hardly pay his $2,400 monthly rent let alone other business expenses.

Healey noted Container Park officials first told him that a nearby Downtown Project redevelopment at Ferguson's Motel would be a better place for his eyeglass business. But when the Ferguson's project was put on hold, Downtown Project introduced Container Park to several businesses that were considering the Ferguson, including Healey.

"ROCeteer isn't saying anything about the viability until we get more into the numbers and how promising it looks," Healey said. "I'm confident the business will work but not so confident that Container Park is the right place for this business."

Healey said he will try to make his store a destination instead of a shop relying on random foot traffic.

"After things are going, it should be more of a destination shop rather than a shop based on foot traffic. I think it's always been clear that the third floor is a horrible place so if people are coming to get glasses then they're going to know where I am already," he said. "Ideally, it should work but I haven't been able to do the marketing to bring people into my shop."

Jenna Adkins, the former owner of another third-level business, Blue Raven boutique gift and clothing shop, said she left earlier this month because of the lack of customers walking on the top level.

But not all third-level tenants feel that way.

Mary Aluas, owner of Pink TuTu Ballet, which has four staff workers, said she is happy with Container Park's management and is aggressive in marketing her theater-in-residence, dance and fitness business several ways.

Aluas said she does everything from handing out dance class fliers to parents at the Container Park playground to attending business networking sessions to leveraging her sponsorship relationship with Miss Nevada to spread the word about her dance, pilates and zumba classes.

Aluas said she approached Container Park because she liked that the park included an outdoor stage and performance area and that it was a good place to conduct community outreach to add "high culture" to the area.

While other third-level tenants said the elevator doesn't work after it rains, Aluas disagreed and said she has not seen the elevator out of order after it has rained.

Rowland said the third-level tenants "knew where they were going to be and realized what they were getting into. There is no guaranteed number of foot traffic."

'Holding up our end of the bargain'

Rowland also noted that most landlords would have already evicted a tenant who had fallen behind by three or four months in rent, but he's trying to work with Healey to see if the marketing consultant and the business owner could come up with a business plan to salvage Monocle Optical.

"We are holding up our end of the bargain," Rowland said.

Businesses come and go at Container Park, but 14 of the original businesses still remain.

As of mid-November, there were 32 businesses in the 38 spots. Some businesses occupy double spaces, so the number of businesses and spots are not the same number.

"The foundation of Container Park is to facilitate a low-risk entry into brick-and-mortar businesses for which the overhead of large retail mall establishments would be prohibitive," said Doug McPhail, Downtown Project director of retail operations.

"The vision for Container Park has always been to provide opportunities for people to try their hand at owning and operating a business. Because we are an incubator, when businesses can't make it, we want to give tenants an easy out whenever possible," McPhail said.

The newest business will be a wedding chapel, Lucky Little Chapel, scheduled to open in mid-December. It will be its second location.

In addition, some stores have used its spot at Container Park to launch second locations, McPhail said. Those are Winky Designs, Big Ern's BBQ, Crazy Legs, and Vegas Flip Flops, he said.

Jojo's Jerky owner Hans Hippert said he's doing so well that he's extended his lease at Container Park. But he still hustles to market his Container Park store, which is one of the 14 original stores and the second one that he has opened. Hippert also opened a third location in Grand Bazaar Shops on the Strip.

"It's almost two years and (Container park) is still going strong. But I still have to hustle. I'm the owner and I'm still at the (Downtown Summerlin) farmer's market telling people about our Container Park location," Hippert said.

Additionally, since opening its first Nevada location at Container Park, Pinches Tacos has also opened a second valley location. DTLV 702 Accessories, one of the original Container park shops, had opened another store in Boca Park but has since closed that site.

Ongoing interest

There is no shortage of interest in renting space in Container Park. Downtown Project receives 15 to 20 inquiries for rental space each month.

Not every store is a good fit, though. Max Pawn shop owner and former Las Vegas Councilman Michael Mack opened Max Luxx, which sold pre-owned designer handbags and sunglasses in Container Park, in April when Container Park held a ceremony for new businesses, including Healey's store.

But Max Luxx has already left its location near the park entrance.

Rowland said Mack closed Max Luxx in Container Park because the park's visitor base was not the right fit for his retail store.

Sometimes, a business does well in Container Park but still leaves because the owner believed there was no reason to have the physical presence there. Such was the case, Rowland said, with Leather Couture by Jessica Galindo. Rowland said her business was profitable at Container Park, but she learned that she didn't necessarily need a physical location there to sell her products.

Neither Mack nor Galindo could be reached for comment.

"We've changed the perception of what people thought of downtown," Rowland said.

Downtown Project is still working on that perception. Rowland said the Ferguson's Motel redevelopment project is back on track and a famous 60-foot piece of art titled "Big Rig Jig" is still earmarked to greet visitors at the Ferguson's project, much like the praying mantis at Container Park.

Rowland said two businesses that looked at the Ferguson's Motel project and have since picked other downtown locations are The Smashed Pig gastro pub at 509 Fremont St. and PeaceLove Studios art therapy business at 117 Fourth St.

Former tenant offers observations on Container Park

Edward Dorville, founder of Vegas Apparel, LLC dba LVCK, was an original Downtown Container Park tenant before leaving in mid-May. He offered his observations on being a tenant there:

"Experience and relationships were at the forefront of what I wanted to gain while at Container Park. In those two metrics, I was highly successful. I learned a lot while being there, especially about time and money, mostly the former to be exact, but they're intertwined. Personal growth was exponential. I was humbled by the support I received from family, friends and people that became friends as a result of having the store. It was certainly not a one-person journey, even though I could usually be found there seven days a week from open to close. I was very proud to be able to hire others for a stretch of time. Even though I see myself employing people again, I can scratch that off my bucket list.

"One of the most important lessons I learned is to be more engaging and curious. I am more willing to open the door of a small business or approach people at their booth at an event to learn about their offerings. Even though it is our job as businesses to market ourselves, as consumers, we should equally be interested in knowing what's available to us in our own community. There are a lot of great stories within those containers, stories of people who have taken risks not palatable to most.

"In my experience, Container Park management and tenant relationship left a lot to be desired. Regardless of that, along with a few mistakes of my own, there were countless highs, great conversations and interactions that took place on the third floor within my four walls. The positive experiences certainly outweighed the negative and I was able to sustain the business for a year and a half. I am also proud to have been the last original tenant on the third floor, outlasting a few second- and even first-floor tenants.

"I see a lot of potential for Container Park and wish my fellow tenants much success; I am rooting for them. Ultimately, an employment opportunity came my way at McCarran International Airport. I now have eyes on and I'm able to compare what's going on there and at our new location at Fashion Show mall. Through my experience at Container Park and at these two locations, I have ultimately learned to take even bigger risks. With each experience, we have the opportunity to win or learn something. I did a lot of learning at Container Park. Hopefully, a reincarnation of LVCK is not too distant."

Contact reporter Alan Snel at asnel@reviewjournal.com Find him on Twitter: @BicycleManSnel