FormuL.A. for Success

Tom DeLellis, general manager for Del-Tho Industries, Inc., a corrugated box supplier located in nearby Vernon, agrees with Overdorf. Del-Tho Industries has been selling to LAWPM merchants since 1959. “Being on the market connects businesses to the long history of produce flowing through the city. Like ours, many are family-owned companies and that continuity has value,” he says. “Despite changes and progress, there’s still caché to being on the market—and I don’t think that will ever go away.”

The Seventh Street Market
The ‘old’ market is steps away from the LAWPM but is evolving in dramatic ways. Originally known as the Los Angeles Terminal Market, this southern terminus of Southern Pacific Rail was once the gateway for 10 percent of the nation’s food distribution. There are still scores of smaller ‘mom and pop’ vendors operating at what’s commonly known as the Alameda Produce Market and collectively still generates a significant volume of produce sales per day.

Changes in buying trends, rising rents, and aging structures made it more difficult for this market (now known as “Row DTLA [Downtown LA]”) to operate as it had been, making it ripe for redevelopment. Atlas Capital Group LLC of New York and Los Angeles along with Square Mile Capital Management acquired the 30-acre property, including seven existing buildings with the new moniker of Row DTLA.

The plan is to develop the vintage warehouses into creative retail, office, and mixed-use space, much like the nearby Arts District. The open-air produce market will continue to operate as it has for nearly 100 years, but when the weekday vendors are closed, Smorgasburg LA operates as a Sunday market street fair with emphasis on local food and crafts.

According to a spokesperson, “Row DTLA is committed to preserving the character of this landmark Los Angeles trade institution. The Alameda Produce Market at Row DTLA will attract diverse elements of the L.A. community to the heart of the market. This new configuration will invigorate the next chapter of the market’s life.”

The renovation may not be proceeding smoothly for everyone. One industry source said it has been very difficult of late for traditional produce merchants to contact management at the old market. Rumor has it that the owners hope to ease the produce vendors out altogether, to make room for more live/work loft spaces for hipsters.

Could the clock be ticking on the LAWPM as well? Some believe developers would love to get their hands on the property and convert it into residences or combined use, similar to the upscale retail center, the Grove, adjacent to the landmark Farmer’s Market on Fairfax in the Miracle Mile district in Los Angeles.

Nearby and Alongside
In recent years, many companies have moved off the established markets’ properties to adjacent areas. Many factors contribute, but it mostly comes down to cost and space. “We’re located just off the market,” comments Daaks International’s Thakker. “We own our facilities, are Primus-certified for food safety, and aren’t bound by terminal market hours. If an established client wants to load at 3:00 am, we can do it. With eight loading docks and flexible hours, we have the ability to serve customers 24/7 at their convenience. We’re ideally situated for handling produce here in the warm, dry climate and within 200 miles of Fresno and the Coachella Valley.”