One Santa Fe is scheduled to open in the fall of this year.

LOS ANGELES—Grow Market has signed a 5,300-square-foot lease for the anchor location at the Yards at One Santa Fe, the retail portion of a 510,000-square-foot mixed-use complex from developer McGregor Brown under construction in the arts district in Downtown Los Angeles. The market is expected to open with development, in the fall of this year.

“Having a smaller, boutique grocer was always our number one goal for the anchor space,” Bill McGregor, president of McGregor Brown, tells GlobeSt.com. “We knew there was a void in the Arts District community for convenient and fresh grocery offerings. Grow fills this void by providing the freshest products and unique services not found in the area. Because it is a local, family-owned business it can easily provide the products and services that the community expects and with 45,000 square feet of total retail space, it never made sense to target a national grocery chain.”

Grow currently has one other location in Manhattan Beach, CA. This downtown spot will serve as the second location for the boutique, family-owned store. As McGregor explains, the grocer sells produce, meat and fish, wine and cheese and a small selection of grocery items. “Grow provides us with all of the products and services that we wanted,” he says.

The Runyon Group is managing leasing efforts for the space, and has already garnered commitments for over 50% of the available retail space, although this is the first official tenant announcement. “We are working with tenants that bring something unique to the table. The arts district is the creative center of Los Angeles and has undergone a tremendous renewal,” McGregor explains. “We want to keep it moving forward by working with retailers and restaurants that complement the community and hopefully and offer something a bit out of the ordinary.”

Boutique grocers not only fill a community void, but are also in high demand by tenants who want to convenience of a small grocer. Recently, GlobeSt.com reported that Lassen’s Natural Foods and Vitamins signed a 12,000-square-foot lease for the anchor location at Wilshire La Brea, a new mixed-use complex in Miracle Mile. The developer, Essex Property Trust, surveyed tenants throughout California and found the number one request for retail was a small grocer.