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Phenix Salon Suites To Open Three Locations In New York, New Jersey As It Expands in Northeast

Salon-Rental Franchiser Had Previously Partnered With Rapper-Actor LL Cool J
Phenix Salon Suites, which now has about 300 locations, is looking to expand nationally and internationally. (Phenix Salon Suites )
Phenix Salon Suites, which now has about 300 locations, is looking to expand nationally and internationally. (Phenix Salon Suites )
CoStar News
November 10, 2023 | 8:20 P.M.

Phenix Salon Suites secured three locations totaling 23,000 square feet in New York and New Jersey arranged by JLL as part of the beauty franchise operator's expansion plans in the Northeast. The chain had previously announced that rapper-actor LL Cool J was partnering with its largest franchisee, Kevin Davis, to own and operate Phenix locations throughout the East Coast, including Queens, Brooklyn and Manhattan, in addition to expanding in the Los Angeles market.

The growing Encinitas, California-based franchise chain has more than 300 beauty salon locations operating in several dozen states. The innovative beauty salon chain follows a salon-suite rental model, licensing individual workstations within larger salons to personal care professionals such as hair stylists, cosmetologists and estheticians. Phenix claims the coworking-like strategy offers solo beauticians, with limited financial resources, the opportunity to own and operate a business without the overhead of renting an entire salon themselves.

The Phenix chain was founded in 2007 by Gina Rivera and began franchising in 2012. Since then it's received financial backing from private equity firm 10 Point Capital.

In the Bronx in New York, Phenix signed a 10-year deal for 7,832 square feet at Broadway Plaza t at 171 W. 230th St. The location is part of a two-story, 133,000-square-foot retail development anchored by Best Buy, T.J. Maxx and an Aldi supermarket.

LL Cool J poses with celebrity stylist and Phenix Salon Suites founder Gina Rivera. (Phenix Salon Suites)

Phenix also signed a 15-year lease to occupy 6,000 square feet at Mid Valley Mall at 39-47 N. Plank Road in Newburgh, New York. That single-story outdoor shopping center, owned by DLC Management, is anchored by Market 32 and co-anchored by Planet Fitness, Citi-Trends and Dollar Tree.

The franchise leased 9,000 square feet at Midstate Mall at 300 Route 18 in East Brunswick, New Jersey. Phenix signed a 10-year lease in a deal with mall owner, Acadia Realty Trust.

The deals are part of Phenix's expansion in the Northeast, according to JLL. The company is also in the midst of an international campaign to develop its network in the United Kingdom, Ireland, Sweden and Canada, with 85 locations planned, the brokerage said.

“Phenix Salon Suites continues to disrupt the traditional salon business with a distinctive coworking concept for entrepreneurial beauty, health and wellness professionals,” David Townes, a JLL managing director, said in a statement. “The New York metropolitan area is a tremendous market for the company and we look forward to supporting its continued expansion efforts in other prime locations.”

Under the Phenix business model, franchisees divide roughly 5,000 square feet into 28 to 30 individual suites available to hair stylists, nail technicians, massage therapists, aestheticians, chiropractors and other service professionals. The suites are equipped with amenities such as a styling chair, a shampoo chair, two cabinets, a hairdryer and a shampoo bowl that hooks directly onto the sink.

"The salon essentials are designed to meet each professional’s basic needs while providing them the opportunity to customize their suites, set their own hours, and operate their businesses as sole proprietors," JLL said.

For the Record

JLL managing director David Townes and Vice President Alana Friedman are the exclusive leasing agents for Phenix in the New York City metropolitan area and brokered the three deals for the chain. Ripco Real Estate brokers Ben Weiner and Jeffrey Howard represented the property owner, Regency Centers, in the Bronx lease. John Kostyo of DLC Management represented the owner of the Newburgh center in-house. In East Brunswick, Pat Delaney of Jeffery Realty represented the property owner Arcadia.

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