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Posted on Fri, Jun 24, 2011 : 5:57 a.m.

Ann Arbor T-shirt Company signs deal to open store in ex-drugstore near EMU

By Paula Gardner

The Ann Arbor T-shirt Company is the first retailer to sign a deal to move into the former Campus Drugs building on the edge of the Eastern Michigan University campus in Ypsilanti.

The lease at 733 W. Cross comes as the company expands into a larger facility on South Industrial in Ann Arbor and aims for continued growth of about 400 percent this year.

rendering.jpg

An architect's rendering of the building, which has been under renovation since winter.

Quinn Evans Architects

It also represents the first step toward owner Andrew O'Neal of O'Neal Construction filling the renovated building with up to 4 new retailers. O'Neal - also owner of the Kerrytown Shops in Ann Arbor - bought the property in December and has been refurbishing upper-level apartments and redesigning the lower level into small retail spaces, including an outdoor patio area.

That vision for turning the former Campus Drugs into a near-campus destination excited the owners of Ann Arbor T-shirt.

"We love that it's kind of a classical urban (setting) with people living above and stores below ... in a walkable neighborhood," said co-owner Jerry Kozak. "... When a coffee shop moves in it should be a focal point for the immediate off-campus area."

The t-shirt company was founded 3 years ago when Kozak and Ricky Winowiecki graduated from the University of Michigan.

The pair moved this week from a 2,000-square-foot production facility into the 15,000-square-foot building on South Industrial that formerly housed Stadium Flooring.

With that move, the company expands into a place where it can increase production but also start a retail showroom.

"Then when the dust settles, we'll dive right into Ypsilanti," Kozak said.

The store in Ypsilanti made sense because about half of the company's university-related sales come from the EMU campus.

While the community has other screen printers, Kozak said, there are none right in that corridor - which also is home to the campus fraternity and sorority system.

The store will open before the fall semester. Kozak will staff it initially, and he expects to hire more people as it adds digital printing capability for more on-site customization.

"When we get to thank, it'll not just be a sales office but a full-service (printer)," he said.

Kozak expects to reach up to $2 million in revenue this year. Business comes from custom local orders, online sales and military jobs, he said. About 20 percent of sales are corporate orders.

The industry is changing, Kozak said, as it undergoes some consolidation. Better printing systems and technology are decreasing lead times and letting local companies compete on price with online-only producers.

At the Ypsilanti store, the company will focus more on EMU and pursue licensing and doing Eagles spirit wear.

It also will alter its name to reflect its new operation in Ypsilanti. Kozak expects to call it the Ypsilanti T-shirt Company, which would be a sister company of the Ann Arbor version.

The company "will build a tiny bridge (between the communities) by making them sister companies," Kozak said. "Like sister cities."

Meanwhile, O'Neal and the property's listing agent say more deals are likely this summer. Potential tenants include a sit-down restaurant, a clothing shop and a sandwich shop.

"We anticipation that we'll be leased up in the next 30 days," said listing agent Bob Andrus of Michigan Commercial Realty.

Comments

denniso800

Fri, Jun 24, 2011 : 1:44 p.m.

Perhaps Mr. Beal should take notes from Mr. O'Neal. There are actually people working at the Campus Drugs location. Can't say the same for the Thompson Block. Amazingly, one is going to get finished soon...... the other, probably never. I wonder which is which.

jinxplayer

Fri, Jun 24, 2011 : 11:10 a.m.

Now that Ted from Ted's Campus Drugs has passed away, I was afraid that building was not going to get used. Hopefully this company sticks it out in the area; Quite a bit of foot traffic on that bit of road in front of EMU.

Jerry

Fri, Jun 24, 2011 : 8:11 p.m.

We have every intention of doing so, Jinx. We've built a lot of great relationships in Ann Arbor over the last few years, and are really excited to become a part of the Ypsilanti community, too. The reception so far has been fantastic, and we look forward to our big opening! Jerry Ann Arbor T-shirt Co.

joe golder

Fri, Jun 24, 2011 : 2:56 p.m.

It's a hop skip and jump to the #1 destination in Ypsi. I expect to see the water tower corridor bloom in the next few years. I don't think anyone will have to stick it out very long.