03/31/2022
Well folks, this is a tough string of words to write. Sunset Beer will be closing its doors after nearly 11 years. If you were a fan of the business — thank you. We were fans of running this business because of you. There really is nothing like having a business idea with friends, taking the leap to make it happen, and watching a community grow.
While there are a hell of a lot more important and sad things going on in the world right now than a mom-and-pop beer store closing its doors, if you were a customer you’re still probably wondering, “why?” We aren’t closing because of the pandemic (though we’re right there with our food/beverage colleagues feeling the terrible pain that has been inflicted). We aren’t closing because we’re cashing out (lord, that couldn’t be further from the truth). And we aren’t closing because we’re tired of the idea.
We’re closing because of one reason — Red Car Ltd./Industry Partners.
Red Car/Industry is a Los Angeles commercial real estate investment company started by a former Blackstone executive in 2018 that began with just under $500M in funds. They bought our building a few years ago, which was a surprise to all of the tenants at 1498 Sunset. From day 1, they showed they had no interest in negotiating leases. They nodded their heads in meetings but ultimately would only go month-to-month and stated that they had plans to redevelop the space. They let 3 businesses walk away and have done nothing to fill those vacant spaces in well over 2 years, leaving us and Alternative Universe as the only operating businesses left. We were invited to come back 12-18 months later after the work was done for nearly 4x the rent, an amount that would also put us out of business. While we tried to negotiate a more reasonable amount, those efforts fell on indifferent ears.
Last week we were given a 60 day notice. We’ll spare you all the wonky details about how conditional use permits work, but the short story is — food/beverage tenants spend six figures of their own money to license the land (permits/consultants/drawings/etc) to sell alcohol. That permit stays with the land and the landlord if they are kicked out — not the tenant.
We aren’t naive. We know it is the nature of cities to expand and landlords can legally charge what they believe the market can handle. But it is important to us that our loyal clientele understand that we didn’t throw in the towel. Our beloved Los Angeles is, at best, small business unfriendly, but add in alcohol and it’s straight up the wild west.
Unsurprisingly, the system is stacked against small business. In the current climate, small businesses have no chance of surviving up against goliath development companies who don’t care about our communities, and who can wait it out and sustain the revenue loss. Los Angeles needs to step up and take a stand to support small business — in profound and real ways — otherwise we will all be living in a sea of Starbucks and Chipotles and the like. Demand your local representatives fight for small businesses, streamline the permitting processes, and (even slightly) level the playing field.
Are we frustrated? Hell yes. I’m sure you’re already aware of that if you’re still reading. But my god, have we been lucky. What a privilege it has been to own this place. Our team was as invested in local breweries and craft beer education as they were in creating a community in Echo Park. We are so much better to have known these good people. 20 jobs are not just lost — the LA community is losing a braintrust of craft beer.
Thank you for letting Sunset Beer provide a brief respite from the insanity of the world news, your work commute, and the everyday stresses we all share. And thank you also from the bottom of our hearts for letting us join in with your birthday celebrations, weddings, job promotions, first dates, f**k-it-it’s-tuesday drinks, and “I just need a moment” moments. We’re really going to miss this place. And we’re really going to miss you, too.
Come visit us in April to say your goodbyes!
Lots of love,
John, Jenna, Drew, & General Manager, Bennett
