Big Plans in Little Saigon : Builders Gamble on 2 More Malls in Shop-Saturated District

Developers will brave the recession to open two shopping complexes in Little Saigon soon, confident that the attractions of their malls will help business owners there survive until the economy improves.

But city commerce officials say both projects are big risks because the Vietnamese retail district is already overdeveloped, with too many shops offering the same products and services.

Promoters of Bolsa Marketplace and Little Saigon Village, both on Bolsa Avenue between Bushard and Ward streets, boast of safer traffic routes through their parking lots and more modern building designs than those of other area complexes.

Parking and traffic problems are notorious in Little Saigon on weekends, when the area is flooded with Southeast Asian residents from as far away as San Diego.

“We felt we could produce a high-quality product that would be profitable despite the economic times,” said William Payne, a co-partner with Paragon Pacific Properties.

Since 1980, Little Saigon has grown to be a mecca for Vietnamese in America. Not only is Westminster home to about 11,400 Vietnamese-Americans, but Little Saigon is a tourist destination for Vietnamese-Americans from throughout the nation.

When the Vietnamese restaurants and music shops first appeared in Little Saigon, their reputation quickly spread to Vietnamese nationally. The ethnic district also holds a Tet festival, celebrating the Vietnamese new year, which draws crowds from all parts of the county’s population.

On the average weekend, it is estimated that nearly half the shoppers in Little Saigon are from out of town. The two new malls will join about 20 other shopping complexes on Bolsa Avenue between Magnolia and Ward streets.

But the area can take only so many noodle restaurants, souvenir stores and clothing boutiques, said Chuoc Vo Ta, executive director of the Vietnamese Chamber of Commerce in Orange County.

“There’s a Vietnamese saying right now: ‘Grand opening, private closing,’ ” Ta said. “If we keep opening similar shops, everybody will get into trouble.”

Paragon started building Bolsa Marketplace on June 7 and plans to open it March 15. The complex was named after a supermarket anchoring the 87,000-square-foot property at Bolsa Avenue and Bushard Street.

About 77% of the nearly 80 retail and office units have been leased, said Paragon’s second partner, Joseph Dung Nguyen. “It’s taking longer because of the tough times.”

Peter Pham agreed. He is head of Peter Pham & Associates, the commercial investment and real estate company handling leasing arrangements for Little Saigon Village.

Of about 40 units in the 50,000-square-foot complex near Brookhurst Street, a few more than half have been taken, Pham said.

Russell Investments started the project in 1990 and plans to open it right after the Feb. 7 Tet festival.

But some caution that--as shop owners in existing complexes are finding out--only new businesses offering basic necessities such as food and Vietnamese music might survive the economic bad times.

“Yes, the area is crowded on the weekends, but are they shopping or are they just eating?” Ta asked. “The shop owners are saying that business is very slow.”

His counterpart at the Westminster Chamber of Commerce agreed but said the new outdoor malls might have a chance because the area is tailored to a certain population.

“Opening any retail business right now--unless it’s a unique product or located at a fantastic location--is a risk,” Frank Zellner said.

The prime location, especially on Bolsa Avenue, is turning out to be both a blessing and curse for the businesses in the Vietnamese commercial district, Ta said.

Little Saigon’s approximate boundaries are Westminster Boulevard to the north, Bolsa Avenue to the south, and Ward and Magnolia streets to the east and west.

“There are lots of businesses in trouble, and the high rent is the main issue here,” Ta said.

Leasing rates range from $1.50 to $3 per square foot, chamber officials and developers said.

But retailers and restaurant owners will be getting more for their money in the new complexes, promoters said. Paragon and Russell have taken pains to make sure that there are no duplicating businesses in their malls and have paid attention to demands of the renters, such as accessibility and landscaping.