HANKOOK MARKET (HK Market) is established on 3121 West Olympic Boulevard, Los Angeles, California as a wholesaler and retailer of Korean groceries.
In August of 1987, HK MARKET expanded and inaugurated the first HK SUPERMARKET at 124 North Western Avenue, replacing a struggling Vons Market.
At first, the monthly sales volume had been around Eight Hundred Thousand Dollars ($800,000.00) and by year’s end, it increased to about One Million Dollars ($1,000,000.00) per month. As the years progressed and business improved, HK SUPERMARKET redeveloped the store to accommodate subtenants, which commercialized snacks, cosmetics, provided photo services, a pharmacy, and video rentals. Such mix proved to create synergy and by December of 1989, this supermarket’s sales volume had increased to about Two Million Dollars ($2,000,000.00) per month.
The property at 124 North Western Avenue, Los Angeles, California was purchased on August of 1987 by Messrs. Ik Whan Oh and Young Jun Kim, who are currently manager of HK Partners, LLC.
With the increase of the Asian population towards the eastern edge of Los Angeles, HK SUPERMARKET continued its expansion eastward and on January of 1991, a new HK SUPERMARKET opened for business in Rowland Heights. Studies show that a initial monthly sales of Six Hundred Thousand Dollars ($600,000.00) had increased to about One Million Dollars ($1,000,000.00) by December of that same year. The business was sold in April of 2004.
In order to accommodate greater demand and streamline distribution, the owners of HK SUPERMARKET established a warehouse and distribution center for all of its stores in April. The subsidiary was initially named WESTERN TRADING, INC., but now operated under the HK GALLERIA WHOLESALE, LP name.
HK MALT, LLC, which is partly owned by Messrs. Oh & Kim, owns the warehouse at 5801 South Malt A venue in Commerce, California. Said building features a net leasable area of 103,552.0 square feet, including 5,700sqft of walk-in Freezer and 5,700sqft of walk-in refrigerator system to accommodate most grocery items at the same location to minimize operation cost.
In July of 1994, HK SUPERMARKET turned the compass northward and acquired a failing property in the San Fernando Valley. During the re-development process, about Eighty Percent (80%) of the property had been pre-leased. On March 29, 1995 redevelopment was completed and another HK SUPERMARKET opened for business.
Both mall and market performed extremely well. The latter presented monthly sales figures of Seven Hundred Fifty Thousand Dollars ($750,000.00), which steadily increased over time. In 1999, the property and business were sold at a handsome profit, as it had been bought at Seven Million Five Hundred Thousand Dollars ($7,500,000.00) and sold for Nine Million Eight Hundred Thousand Dollars ($9,800,000.00).
The expansion of HK SUPERMARKET turned southwards to Gardena in December of 1996. Although sales volume increased steadily over time, HK SUPERMARKET decided that the rate of increase did not fit Company’s business model and the market was sold about a year later.
On January of 1997, timing and entrepreneurial skills were utilized to acquire the 219,586 square feet shopping mall with a net leasable area of 87,390 square feet in Rowland Heights, California where HK SUPERMARKET had been operating since January of 1991. Through competent management and leasing, the mall increased in value, and in April of 2004 this mall was sold for Twenty Three Million Five Hundred Thousand Dollars ($23,500,000.00), which is more than double of its purchase price of Ten Million Five Hundred Thousand Dollars ($10,500,000.00). The capital gains from this sale were applied in a tax efficient manner through a 1031 exchange, where two regional malls anchored by national tenants were purchased, namely McComber Center and Gordon Square in Buena Park, for Six Million Two Hundred Fifty Thousand Dollars ($6,250,000.00) and Twenty Five Million Five Hundred Thousand Dollars ($25,500,000.00), respectively.
The growth of the Korean population in the Glendale-Burbank-Pasadena area provided opportunity for another successful market operation. In 1997, a warehouse was leased and subsequently redeveloped for Three Million Five Hundred Thousand Dollars ($3,500,000.00) into a thriving mall with HK SUPERMARKET, Nara Bank, video renting shop, and varied retailers, ranging from the sale of cosmetics, gifts, underwear, cellular phones, and services such as pharmacy, bakery, barber and a take out Chinese restaurant. This successful tenant mix created synergy and increased sales volume for the market throughout the years, which volume is presently estimated to be at One Million Dollars ($1,000,000.00) per month.
Hailed by the Los Angeles Times as the capital of Koreatown, Koreatown Galleria Shopping Center opened for business with GALLERIA MARKET as its anchor tenant, in addition to 65 other tenants on September 6, 2001.
Koreatown Galleria is situated at a site formerly abandoned site by Ralphs Supermarket, in the southeast comer of Olympic Boulevard and Western Avenue in Los Angeles, California. HK Partners, LLC secured the land through a 99-year ground lease and developed this thriving shopping mall, which has been recently appraised at Forty Five Million Dollars ($45,000,000.00).
GALLERIA MARKET is to HK SUPERMARKET what Lexus is to Toyota.
This crown jewel stands out from the competition by featuring a monthly sales volume of almost Three Million Dollars ($3,000,000.00).
In January of2004, HK Northridge, LLC acquired a 464,994 square feet regional mall with net leasable area of 137,810 square feet at the southwest comer of Reseda Boulevard and Devonshire Street in Northridge, California for Twenty Five Million Dollars ($25,000,000.00). This mall is anchored by national tenants such as Savon Drugs, Kragen Auto Parts, Pizza Hut, Starbucks, and Jamba Juice. GALLERIA MARKET established business to the space immediately adjacent to Savon and once again it created a tenant mix within its own space that features restaurants and a select variety of merchants based on a formula that had proven successful over the years.
The address where GALLERIA MARKET operates was home to major supermarkets in the past, namely Ralphs and Vons, respectively. It is suspected that both of these merchants left the site due to unfavorable business conditions.
However, the current sales volume for this GALLERIA MARKET branch is about One Million Dollars ($1,200,000.00) per month.
In Sepetember of 2009, Galleria Market opened in Rowland Heights as its third location to provide the excellent service and goods to oriental community in the east side of Los Angeles. Despite of its size (around 18,000 sqft), current monthly sales volume for this location is around half million ($500,000.00).
HK SUPERMARKET AND GALLERIA MARKET have an inventory of stores throughout Greater Los Angeles and Orange County, which cover areas heavily populated by Asian populations. According to some estimates, the Korean population alone is One Million (1,000,000) strong and growing.
Assuming an expenditure of Two Dollars ($2.00) per person per day on food, potential sales are over Thirty Million Dollars ($30,000,000.00) per month. It is estimated that out of this potential sales figure, about Twenty Million Dollars ($20,000,000.00) are absorbed by ethnic Korean markets.
Sales are expected to increase due to natural population growth and due to the influx of new immigrants.
HK SUPERMARKET AND GALLERIA MARKET have grabbed the largest share of this niche market and has the longest history and best reputation in the community.
LOCATIONS OF HK SUPERMARKET & GALLERIA MARKET
• GALLERIA MARKET
.:. 3250 West Olympic Boulevard, Los Angeles, CA
.:. 10201 Reseda Boulevard, Northridge, CA
.:. 440 S. Vermont Ave, Los Angeles, CA
• HK SUPERMARKET
.:. 124 North Western Avenue, Los Angeles, CA
.:. 831 North Pacific Avenue, Glendale, CA – (Permanently Closed)