Lalla Grill – San Jose
Lallapalooza – Monterey
Eli’s American Grill – Salinas
Lalla Grill – Monterey
Lalla Oceanside – Monterey
The Lalla’s Story by Keith Simpson – Listing Transaction Agent for Restaurant Realty Company
August 2019 – I first met with Mr. Pat Ottone at his Lalla Grill restaurant in San Jose, which he’d owned for 2 years.
Was a beautifully appointed 4,000 sq ft with a large patio located on the main thoroughfare. Pat, a restaurant veteran of 25 years, could not make ends meet at his latest venture. He spoke of his other 4 successful restaurants in the Monterey area that had combined revenues of $14 million and were supporting San Jose. Sadly, it was time to sell San Jose. By February 2020 a buyer was in contract for a mere $250,000, 10% of the build out cost just 2 years prior, but the monthly losses had ceased. Escrow closed in June 2020.
Pat and I met later that year in 2020 to discuss his retirement from the restaurant industry as the pandemic had savaged his Monterey establishments with closures or ‘To Go’ only and PPP & EIDL loans propping up a once thriving business portfolio.
After a whirlwind day visiting all 4 restaurants, Restaurant Realty Company listed each for sale in November 2020.
Located on Alvarado Street in Downtown Monterey, Lallapalooza was a successful, upscale restaurant for the past 20 years boasting 3,000 sq ft. Closed by the pandemic, this once thriving restaurant sold in February 2021 for $300,000. This Monterey icon had consistent annual revenues of $2 million. The Buyers Alex and Carlos Moncada were seasoned local restaurant owners in the area wishing to expand their upscale Mexican concept.
Eli’s American Grill
A successful 6,500 sq ft Bakery restaurant in Salinas which Pat had owned since 2002, building revenues to a consistent $4 million. Lallapalooza restaurant Buyers, Alex and Carlos agreed to purchase Eli’s for $1.2 million but the landlord had other ideas. The landlord’s brother was also a successful multiple restaurant owner and was the chosen buyer. Escrow closed in November 2021 for the same sale price.
Lalla Grill & Lalla Oceanside
Although disappointed Alex and Carlos were not to be beaten down by Eli’s landlord. Pat and I persuaded them to purchase both, Lalla Grill, 5,250 sq ft at the Del Monte Shopping Center and Lalla Oceanside, 6,400 sq ft on Cannery Row for a total of $2.7 million. These were Pat Ottone’s final restaurants in his portfolio and were as successful as Eli’s, with annual revenues of around $4 million each. With financial assistance from Plumas Bank, providing 80% SBA finance and targeted to close escrow by the end of 2021, the Alcohol Beverage Control could not conclude their investigations until January 5th 2022.
When I first met Pat Ottone in 2020, he told me that one day he’d sell all this restaurants but needed $5 million in total enabling him to retire. Considering his comment was made 6 months prior to the pandemic, we sold all his restaurants establishments during the pandemic and within 18 months for a total of $4.5 million.