CLEVELAND — Pearl Street Wine Market & Cafe, nestled in the heart of Ohio City, is preparing to say goodbye at the end of March.
The market and cafe, which opened less than two years ago, quickly became a cherished spot for locals and visitors alike.
Offering a curated selection of cheeses, wines, charcuterie, and small plates, Pearl Street prides itself on its commitment to showcasing local producers and artisans.
Karen Small and Jill Davis, the owners of Pearl Street Wine Market and Cafe worked on creating a warm and welcoming atmosphere for guests.
Despite their efforts, however, the restaurant faced a significant challenge in the form of a rent increase at the end of their lease.
Small revealed that the monthly rent skyrocketed from $4,000 to $11,000.
This hike posed a formidable obstacle to the viability of the business.
"It's insane, and it's just a move to get us out. That's all I can think,” Small said.
The property, owned by Harsax Management since 2001, has become embroiled in controversy following the announcement of the closure. Randy Sacks, the owner of the building, cited a market survey indicating an average rent of $25 per square foot for similar establishments in Ohio City.
He shared the following statement with News 5:
"We have the utmost respect for Karen Small, were proud to host the renowned Flying Fig and were supportive when she decided to close it to open Pearl Street Wine Market and Café. We are regretful that we have failed to find a solution that is tenable to both her business and our ability to make our mortgage payments. However, her previous landlord, Ohio City Inc., is a non-profit whose mission is to nurture valued local businesses. To that end, they leased Karen the space at less than 50% of the going market rent, in effect subsidizing her restaurant. That is not possible for us, as the building is currently losing money and we would be forced to sell it.
Our survey of the market determined that $25 per square foot is the average rent that restaurants are paying for space in the heart of Ohio City. Most seem to be thriving. We discounted that rate by 10% in the hopes we could continue our partnership with Karen. We would still love to find a solution that would help Pearl Street remain in this location. We are recommending Karen reach out to Ohio City Inc. We would be willing to sell the building back to them for what we have in it if they would be able to come to agreeable terms with her."
Despite the uncertainty surrounding Pearl Street's future, Small is working to secure employment opportunities for her dedicated staff at her other restaurants.
