Green Room Surf Shop building for sale

Paul Clinton

The owners of the building that houses a popular West Newport surf

shop have put their property on the market, a move that has caused

friction with the proprietor.

Gregg Steiner, who owns the Green Room Surf Shop, says he has been

rebuffed in a bid to purchase the building he has called home, but

not owned, since June 2001.

Steiner said he submitted an offer to purchase the 1,800

square-foot building shortly after the owners listed it on April 15.

Jeffrey and Lorraine Kennard, who live in Hawaii, have owned the

property since the mid-1970s.

Kevin Quick, at Lee and Associates’ Newport Beach office, has the

listing. The Kennards are asking $995,000 for the property, Quick

said.

“We countered with something they didn’t accept,” Steiner said.

Steiner made an offer that was “significantly less” than the asking

price, he said.

Lorraine Kennard, when contacted Tuesday, said she has never

received an offer from Steiner. Quick also said Green Room operators

haven’t come forward with a hard offer.

“I haven’t seen an offer from him,” Quick said. “We’ve talked to

him about making an offer, but they don’t even think it’s worth

$400,000.”

At about $552 per square foot, the listing price is comparable to

properties along Old Newport Boulevard, Quick said. There are few

comparisons available for commercial properties located along West

Coast Highway -- the Green Room is at 6480 W. Coast Highway -- Quick

said, because many have been held by a small number of families for

several decades.

The Green Room has an assessed value of $87,745, according to

county property records. That amount “wouldn’t even buy you the dirt”

today, Quick said.

Steiner has also been trying to negotiate an extension to his

lease with the Kennards, he said. Steiner’s lease expires on March

15, Quick said.

“I’m trying to negotiate a new lease,” Steiner said. “They will

not give us a long-term thing. A long term lease does hinder the sale

of the property.”

A group of local surf board makers opened the Green Room in the

early 1990s. Since then, it has gathered a following among local

surfers looking for wetsuits, “fun boards” and other surf-related

hardware. Steiner bought out the prior owners in June 2001.

* 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.