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Brazilian Market Closes

The Brazilian market on Grandview Avenue in Wheaton has closed its doors and turned off the lights.

The shelves are empty, and the tables are gone at Those in search of pan de queijo or ingredients for passion fruit mousse must look elsewhere. 

The reason? Failure to pay rent, according to an official notice posted on the door at 11425 Grandview Avenue.

Where will you go for Brazilian food? Tell us in the comments. 

Commentous August 03, 2012 at 10:23 PM
Sean--I'm inclined to agree with you about the bar idea, though I do think there's a difference between an American-style bar and an Irish or Scottish one. I think a gourmet food store might do OK there, but the space may not be big enough. People who live across the street at the newer townhomes (that used to be Wheaton Lumber) may have some disposable income but may not have been that interested in using it at a Brazilian Market. We'll see what comes. Also, the properties on that block must have high leases because so many of these spaces remain available for lease or close down. Either the lease prices will need to go down or the income of the area will need to go up before a lot of these spaces fill. There's no way the M-NCPPC employees will help businesses like the Brazilian Market. The market and so many other businesses are too far out. Almost none of these employees will venture out to see the other side of University Boulevard, so they cannot be relied on to help the whole area the way residents would. [Serenity now, serenity now...]
ED August 04, 2012 at 06:12 PM
Commentous - It is my understanding that the owner of this property (and many other properties in Wheaton) uses "triple-net leases". With these types of leases, the rent is usually lower, but the tenant is responsible for every cost - insurance, property taxes, maintenance. As a result, many businesses can not survive with unexpected overhead costs such as replacement of an air-conditioning system or furnace. While these types of leases are great for property owners, they are very costly for tenants (businesses).
Sean August 04, 2012 at 07:13 PM
Not sure if so called triple-net leases are good or not but my understanding is that this landlord owns a significant amount of property in Wheaton.
Commentous August 04, 2012 at 09:24 PM
ED-I'm not sure that a good business plan doesn't take into account "unexpected" costs like a new furnace. Every business has these types of costs but businesses without any cash for such expenses will be hard-pressed to survive. Maybe "lease" isn't the exact term but the idea is this, which I think we agree on: The total costs of running a business at many of the Greenhill properties exceeds the income that the businesses can derive from the area. Contrary to your final sentence, though, you'll have to explain how a lease like this is great for anyone, including the property owner, when businesses don't fill space or--like Brazilian Market appears to have done--leave without paying. Maybe the property owner is wealthy and can absorb the cost better than an individual store owner, but leases would serve both lessor and lessee better if the lessee could stay in business.
ED August 04, 2012 at 10:58 PM
With many leases, the property owner absorbs the costs of the maintenance of the building and grounds, the taxes, insurance, etc. and charges rent(s) based on the cost of all of this and a profit margin. Their expenditures are deducted from their proceeds as the cost of doing business. With a triple-net lease, the property owner has little or no expenditure other than supplying the building and he still collects rent. In the case of Wheaton and Greenhill, if the spaces are empty, the company can still write off these vacancy rent losses against all of the other properties that they own - which is quite a few in Maryland for Greenhill. As far as the Brazilian Market, even though they were evicted for non-payment, they are still liable for the rent until their lease is up and they may also be liable for any maintenance costs and taxes that are outstanding. Personally, I don't see how any small business can make it with these triple-net leases.

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