Home is where the money is in Newport-Mesa

Paul Clinton

A two-year housing boom has led to a steady stream of sales of rugs,

sofas, plasma screen televisions and other home furnishings, area

retailers said.

Lidia Mandelbaum, the manager of dupuis in South Coast Plaza, said

her store has seen a renewed interest in her Mexican-style furniture.

“When real estate is hot, people buy furniture,” Mandelbaum said.

“One thing goes with the other.”

Not only have the existing home retailers done well; a string of

new stores have come to Newport-Mesa in the past two years to give

shoppers a bevy of options.

Late last month, a new 308,000-square-foot IKEA opened at the Home

Ranch development in Costa Mesa.

Fashion Island added Design Within Reach in late 2002 and Shabby

Chic in late 2001. South Coast Plaza, since October, has brought in

Silk Trading Co., Room & Board and Retrospect.

In October, the Irvine Co. opened Crystal Cove Promenade, which

includes the Yellow Cottage, Acanthus Gallery, Williams-Sonoma and

Juxtaposition Home.

“We have met or exceeded our sales plan monthly since we opened in

October,” said Julie Weil, marketing director at Room & Board Inc.,

which also owns Retrospect. “What we’re finding too is an overall

level of importance placed on the home. ... They’re wanting to make

it nice, a reflection of themselves.”

Business has been going so well at Gary’s Island Home in Fashion

Island that owner Dick Braeger is now negotiating with landlord the

Irvine Co. for space to expand. Braeger says he suspects that people

are putting off their European vacations and using the money to

remodel their living rooms.

“People aren’t traveling as much,” Braeger said. “They’re spending

more on their homes.”

Even in a weak economy, the two destination shopping centers South

Coast Plaza and Fashion Island have fared well and seen their home

stores outperform other retail categories, spokeswomen said.

“We do have a very strong retail category,” said Shayne Voorheis,

Fashion Island’s sales and marketing director. “The whole category is

performing very well. The trend is that people are staying at home.”

Other local home retailers are seeing solid sales.

Ellen Jones, manager of Juxtaposition Home in Crystal Cove

Promenade, said the focus on home has come from a chilling in the

travel markets since the terrorist attacks of Sept. 11, 2001.

“I think especially in light of Sept. 11, people want to nest and

make their homes comfortable,” Jones said. “Their dollars are going

into home improvement.”

One way to gauge heightened home improvement activity is to look

at the permits issued by city building departments, Newport Beach

Chamber of Commerce President Richard Luehrs said.

Luehrs himself pulled a permit to redo a portion of his own home,

he said. A remodel can often lead to an array of new accessories.

“I’m absolutely familiar with that,” Luehrs said. “When you

remodel the kitchen, don’t tell me you’re going to bring in that old

glassware.”

Newport Beach’s building department has, since 1996, issued record

numbers of permits for work. Costa Mesa Building Director Rick Brown

could not be reached for comment.

In April, the city issued 14 permits for new homes and 11 for

demolitions. The city averages about 130 permits for total home

projects, Building Director Jay Elbettar said.

Every year since 1998, the city has issued permits for more than

$200 million worth of work on homes, he added.

“We noticed a rise two years ago that here has been a very high

value of residential construction,” Elbettar said.

Much of the home improvement activity has been driven by

historically low interest rates, which have made it possible for

homeowners to pull cash out of their home by refinancing their

mortgage at a lower rate.

Lenders have also reported a rise in equity lines of credit to

finance remodels.

“It’s an optimum time, with the low interest rates,” said Ed

Fawcett, president of the Costa Mesa Chamber of Commerce. “They’re

either rebuilding, refurbishing or remodeling their homes.”

* PAUL CLINTON covers the environment, business and politics. He

may be reached at (949) 764-4330 or by e-mail at

paul.clinton@latimes.com.