Another Longtime Business on Newport Ave Pulling Up Stakes Due to 20% Rent Increase

by on May 23, 2024 · 31 comments

in Ocean Beach

Gianni Buonomo Vintners Set to Move to Midway District

From SanDiegoVille

San Diego’s award-winning Gianni Buonomo Vinters urban winery is leaving Ocean Beach after nearly a decade to relocate to a new facility in the Midway District, which some consider Point Loma.

Longtime Ocean Beach resident Keith Rolle opened his urban winery Gianni Buonomo Vintners on Newport Avenue in OB in early 2016. Just two years after he got his start as a professional winemaker, two of his wines won double gold and bronze medals at the prestigious San Francisco Chronicle Wine Competition, which has heavy submissions from the highly-regarded Napa and Sonoma wine regions of California and is considered the largest competition of American wines in the world.

Rolle only submitted two wines, his extremely rare Charbono and Blaufränkisch varieties.

Gianni Buonomo Vinters will leave its longtime home in Ocean Beach on July 31. Rolle cites economic reasons as the catalyst behind the move, being the building’s landlord is allegedly raising the rent 20% for the space. The winery is relocating three miles away to the Sports Arena area of Point Loma. The new space will feature a 40-foot tasting bar, lounge area, a warehouse for case goods and barrel storage and a parking lot for 18 vehicles.

“It took a couple years for people to realize that world-class wine could be made in our own little neighborhood,” commented Rolle. Since then, the Peninsula community has embraced us as their own. We’re eternally grateful for the tremendous support and are sad to leave OB.”

The new Gianni Buonomo Vinters is expected to open on September 21 at 3492 Pickett Street in San Diego’s Sports Arena area. For more information, visit GBVintners.com.

{ 31 comments… read them below or add one }

Frank Gormlie May 23, 2024 at 12:14 pm

Please tell me, what’s with these greedy Newport Avenue landlords? This is a classy winery that has added to the culture on Newport.

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FrankF May 24, 2024 at 8:12 am

Whull, that building is owned by another mom-and-pop business two doors east. What we don’t know is the cost of owning that building. Do they have a mortgage? It was last sold in 2015 for $1.3M. A quick search shows that they pay $24,000 a year in property taxes. Those expenses add up fast.

The landlord is not a charity, they have to pay their bills, too. The building looks well maintained from the outside. Do we want it to look like hell because the landlord can’t afford to take care of it??

And the winery, they signed a lease for x number of years at x $ rent. I assume that term expired and they had to make a business decision to stay or go based on cost…and the numbers didn’t work out. Oh well.

So give the landlord a break and assume that they are doing what they need to do to make this building remain a viable and attractive location for a new business who wants to move into OB.

If anything, OB rents are a symptom of its popularity. If rents were low that would tell me that our community isn’t economically healthy.

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Frank Gormlie May 24, 2024 at 9:25 am

what you’re not considering is the history of Newport Ave property owners’ greed; they’ve kicked out a lot of decent businesses over the years. How would you like a 20% increase in whatever rent or mortgage you’re paying. All your points are applicable to the landlord; they signed a lease for x for y years; their lessor is not a charity blah blah blah, so give the winery a break, dude!

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Earl Scheib May 31, 2024 at 10:18 pm

The owners of the building are not a mom/pop outfit. Owned by a couple of brothers who, in tandem or individually, own dozens of properties across San Diego, all of which are owned free and clear. Ironically, they don’t own the building a couple of doors to the east, instead leasing it and subletting to Azucar. Oh, and the building looks good from the outside because the tenants, not the owners, maintain it.

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Norm May 23, 2024 at 2:29 pm

People will always be greedy. Building more would dilute how greedy landlords could be because there would be increased competition from renters. If you want more mom and pop businesses in OB you should probably reconsider your views on development

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Frank Gormlie May 23, 2024 at 3:21 pm

Really does not jive. We “want more mom and pop businesses in OB” and need to reconsider our views on development…” — which are what, Norm? So, because we support the 30-foot height limit, oppose over-development without an accompanying infrastructure, and want genuine affordable housing – we need to change those in order for more small businesses to show up in OB? Why don’t you question why our main street propertyowners are too greedy for the community’s good? Someone’s greed just kicked out an incredible one-of-its kind businesses — that in truth, catered to expensive wine drinkers — and forced to find a space where walk-in traffic will not be as consistent as it was on Newport. Newport just lost part of its classiness, part of its diversity, part of its depth. And I’m not even a big wine drinker.

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Norm May 23, 2024 at 6:54 pm

Property owners have always been greedy. They just couldn’t raise rents the way they do now because supply is so limited. But hey I don’t live in OB so what do I care? Meanwhile, your community is getting abandoned by the mom and pop businesses that you care about. Unless you can figure out a way to regulate greedy landlords (you can’t) then you better come up with something that helps bring about more affordable rents. The fact that the OB Rag doesn’t seem to have articulated a series of policy proposals suggests that you guys would rather whine about the problem than do something about it.

You guys can’t coast on the success of the 30 ft height limit forever. Its 2024 now, time to get with the program and face today’s challenges

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Mateo May 23, 2024 at 3:30 pm

That statement is completely disingenuous, if not an outright fallacy.

Tax incentives state and federal offset losses from languishing vacancies sustained by keeping retail space rents artificially high.

The Mara, or what was originally the Jefferson on Mission Bay Drive boasts copious amounts of retail space, yet since completed in 2017, all of that reatail has gone unoccupied, save one space that a veterinarian is admittedly is struggling to keep renting.

There are no shortages of overpriced retail space citywide, countywide & statewide. The market has been completely manipulated. Therefore, you cannot profit from corporate welfare for real estate, and in the same breath falsely declare that “the free market system will regulate itself.”

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Norm May 23, 2024 at 6:57 pm

Its not disingenuous at all.

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Mateo May 24, 2024 at 7:16 am

Norm – Everyone continues to bear witness the 16 + years of devastation that failed Democratic party imposed supply side corporate real estate welfare economics that have produced. Nothing but a trail of catastrophic homelessness and explosive and unsustainable increasing costs of living.

Logical reflection, discussion and scrutiny does not equal MAGA.

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Chris May 25, 2024 at 11:24 pm

It is actually and you are not sincerely of the opinion that is isnt. So why did you make the statement that you did?

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Norm May 26, 2024 at 2:29 pm

Chris I am of the opinion that I stated.

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Mateo May 23, 2024 at 3:08 pm

Character, history, tradition, identity, sense of community, our culture sacrificed at the alter of the almighty politico-corporate real estate complex.

Take a drive up Mission Blvd. Until very recently 90% of the businesses were locally owned and proudly operated Mom and Pop establishments.

Pacific Beach has become the Times Square for Global Corporate Conglomerates. (Jen Campbell sold our soul and then gerrymandered us out of our own district)

Buonomo’s space will inevitably become a corporate chain of some sort. (if it is to sustain) Or will become just another revolving door of redundantly shuttering small business entrepreneurs bankrupted by ridiculous 20% rent increases and extortion now.

FYI the norm amongst the beach area PB businesses now, for corporate landlords, many owned and operated out of state, to demand percentages of monthly sales sometimes as high as 10% on some retail establishments.

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Norm May 23, 2024 at 6:58 pm

PB is the times square for Global Corporate Conglomerates? Bro have you been anywhere? God that is such a ridiculous statement. Do you think the Illuminati is responsible for all of it?

Frank you really gotta talk a bit of sense into this guy. He makes your progressive website look like a MAGA rag!

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Frank Gormlie May 23, 2024 at 7:13 pm

He makes a lot of sense much of the time; we don’t agree on some things, but PB has lost a lot of its soul.

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Mateo May 24, 2024 at 12:19 am

Norm – Pacific Beach is all global corporate conglomerate owned chain stores, from Vans owned by VF now, to Rip Curl to Urban Outfitters. False equivocate much?

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Mateo May 24, 2024 at 7:40 am

“If there be time to expose through discussion the falsehood and fallacies, to avert the evil by the processes of education, the remedy to be applied is more speech, not enforced silence.”
– Louis Bandeis, Supreme Court Justice 1916-1939

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Elizabeth Smith May 24, 2024 at 10:41 am

Pointing out the failures of local and state leadership does not make one “MAGA.” The blind obedience to ideology clearly affects one’s judgement and critical thinking skills. At one time, the Democratic Party claimed to be on the side of Main Street, that’s clearly not the case in 2024.

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Mateo May 24, 2024 at 1:32 pm

Well said.

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Sam May 23, 2024 at 5:35 pm

What a shame. That 1/2 block of Newport is the only classy part of OB. This is a tragic loss to our community.

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marc May 23, 2024 at 10:15 pm

Ca, governor Newsom want to raise tax on small businesses. That will only make things worse.

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Doug May 24, 2024 at 1:59 pm

Stop voting for bonds, every bond that passes raises property taxes and higher
Property tax means higher rent for all you renters.
Most bond’s are for 30+ years and that is passed to renters The property owner also pays for Insurance. As a property owner I disagree with any short sited individual calling property owners greedy.

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Ed May 24, 2024 at 6:15 pm

The landlord is a business and their costs for insurance, taxes, ongoing maintenance has increased significantly. They are not running a charity! They must pass these costs along so stop whining they are evil. let the free market decide.

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Frank Gormlie May 24, 2024 at 6:30 pm

The “free market” is not free. The free market brought us child slave labor, polluted drinking water, products and foods that poison us, dirty disease-causing air — just for starters, and for the last 120 years or so has had to be regulated. Of course you’re speaking of our local free market where landlords can charge whatever they want, kick out businesses and renters they don’t like, ignore laws and rules, pay workers a minimum wage and polish politicians’ boots — or give them $100K for their campaigns in order to be rewarded choice public land to make money off of.

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John Manfred May 25, 2024 at 7:47 am

Small Mom and Pops are getting squeezed more than you can imagine. Our insurance on our 30 YO (to us) building has been cancelled and we have been forced to go with a non admitted carrier without replacement coverage AND pay 50% more. Trash P/u which used to be free is now 285 per month. Don’t talk to me about the 100% increase in our electricity/water..etc. I’d love to never raise rents but that is simply Pollyanna thinking.

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Mateo May 25, 2024 at 3:18 pm

It is not Pollyanna thinking. However the focus needs to be shifted.

As a commercial property owning Californian you are not just getting squeezed. You’re getting legislatively discriminated against and aggressively shaken down.

In addition to your insurance, trash collection:
(brought to you by deceptive citywide mailers paid for by Sean Elo Rivera’s campaign, but I digress) https://laprensa.org/SDtrashtax

You pay California income tax on that rental income.

Most likely you pay to lease an office, which in turn pays the salaries of other Californians, including the pay that supports your staff that also in-turn pay California income taxes.

The wealth that your company generates is spent, right here in America’s Finest City.

You pay California sales tax on every purchase from the furniture you buy in San Diego stores, groceries, shoes, you donate to local charities, and your success helps support your community. This is the way it is supposed to work.

If you are a publicly traded Real Estate Investment Investment Firm?
99/100 your corporation is NOT headquartered in California, you’re inevitably going to be a corporation registered in Delaware and headquartered in another state like Texas, Pennsylvania or Florida. Why would you HQ in San Diego, when the state of California taxes your corporation up the kazoo?

So John Manfred you and your Mom and Pop soul sisters are playing by rules that our legislators have ensured that their corporate masters need not honor.

You don’t get to enjoy the same federal tax subsidies. and most likely do not conveniently qualify for California subsidies offered the Wall Street corporate real estate behemoths. Mom and Pop don’t donate $50K a pop to Gloria’s or Atkins, or Newsom’s campaigns to play.

The result has been the extraction of tens of billions in wealth from our communities and taxes that should have replenished City, County and State coffers.

The result is forfeiting all corporate and individual income taxes that would have been generated with more Mom and Pop’s, playing by the rules, that would have funded the all of the irresponsibly deferred maintenance of our crumbling infrastructure.

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FrankF May 25, 2024 at 8:14 pm

Allow me to add one more legislated discriminatory law passed to favor the big boys. San Diego City has rent control passed two years ago. But funny thing, it only applies to apartment buildings that are 15 years and older. Apartment buildings less than 15 years old can charge whatever they want.

Who pushed this exemption? The Buildings Industry Association, who are big donors to the city council. They are the guys who build big apartment complexes, developers. You know the huge fancy apartments in Mission Valley? No rent control for 15 years.

Meanwhile mom and pops are stuck with rent control.

Now some of you might be cheering for rent control but in reality, it limits investment returns for aging apartments which means apartments older than 15 years will not get the maintenance and upkeep they deserve. So if you live in an older rent controlled apartment don’t be surprised if the place is slowly going to hell.

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Ed May 25, 2024 at 9:45 am

“where landlords can charge whatever they want“

Frank, if you owned a coffee shop and if the nearby coffee shops sell their coffee for $5, would you set your price at $5 to stay competitive and cover your costs, or would you sell for $3.50 and limit your ability to grow and hire more employees, handle rent increases, etc ? The landlord is no different. They need to increase or decrease their rates based on their expenses and the market value.

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Mateo May 26, 2024 at 7:16 am

Real Estate Investment Trusts on Wall Street. the birthplace and sole driver of the agonizing runaway inflation of the last 4 years. 80% of Americans make LESS than $100K.

Ed, the commercial and residential markets have been completely so legislatively manipulated for corporate interests. that we sit on the precipice and threshold of total collapse.

Properties purchased 15 – 20 years ago, can rent for as little as the cost equal to the State property taxes.

Commercial properties purchased in the last 4 years in San Diego at ridiculously overvalued prices, need to fetch rents that will bankrupt almost any small businesses. Small businesses in California are the major providers of gainful employment in our state.

Because the residential market is so manipulated and overvalued, those small business employees can no longer afford to live here. Neither can our infrastructure dependent police officers, nurses, firefighters, school teachers, and city, county and state workers.

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Will May 26, 2024 at 8:41 am

There are so many tears for landlords here. Some worries about rising expenses are legitimate to an extent, but Prop 13 protections that limit property taxes apply to commercial property as well. Low mortgage rates have been locked in on many of these properties that had been purchased at what used to be astronomical prices rather than our now current astronomical prices.

What landlord does not follow the market for rent prices? Do you want to make some money or as much as you legally can? Did they purchase these properties for the benefit of the community? The property owners’ rights argument has been a crux of the AirBnB nightmare for our community. Scarcity is the core of our problems. There is only one Newport Ave. As much as possible should probably be community owned.

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Frank Gormlie May 28, 2024 at 9:25 am

Scott Lewis, ed of Voice of SD, just made fun of the headline that called the winery a “longtime” business on a facebook comment somewhere. But 8 years, I responded, is a longtime on Newport Ave these days, which is one of the points of the article in the first place.

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