River Street’s Java Junction to close after 28 years, citing rent hike and construction impacts

After three decades, Santa Cruz coffeehouse Java Junction will close its location in Gateway Plaza at the end of April, citing issues with its landlord. 

This week, owner Michael Spadafora posted a sign to the door of his River Street coffee shop announcing the closure, and laid the blame on property owner Balboa Retail Partners, which purchased the center in 2021. 

“The new owners Balboa Retail Partners have been remodeling the center and have negatively affected us along with [a] new lease price of almost $9,000 a month,” wrote Spadafora. A construction project next door to the café has led to the loss of his outdoor seating for nearly a year, and a dumpster placed near his front door has negatively affected sales, he said. 

Spadafora said the property manager hasn’t shared details about when the project will be done and Java Junction will regain access to its outside seats. “When asked about the patio seating… they said they don’t have to consult me on anything they do,” he wrote. “The area is closed until my lease is over, I feel intentionally.” 

First opened in 1998, Java Junction will close its River Street location on Monday, April 27. Two other locations in Santa Cruz – one on Seabright Avenue and the other in the Santa Cruz Harbor – remain open, despite suffering through low sales in 2025 due to construction on the Murray Street Bridge. 

The issues between Spadafora, Balboa Retail Partners and property management company JLL Commercial Real Estate stretch to October 2024, when a manager approached Spadafora about operating out of a converted storage container during construction next door. He declined, because the space wouldn’t allow Java Junction to offer its full range of products, including smoothies, espresso drinks and bagel sandwiches with homemade toppings. After some back and forth, the property manager dropped the issue, said Spadafora. 

When construction began next to the coffee house last summer, Spadafora couldn’t access the outdoor seating. The property manager also placed a construction dumpster near the entrance for five months, which discouraged visitors, he said. While he did receive a discount on his lease for three months, it didn’t make up for the sales he lost. 

Spadafora said the property manager wouldn’t share details about how long the project would last or what the improvements are, despite several requests for more information, which added to his frustration. The city approved a permit for minor modifications to Gateway Plaza in October 2024 to construct facade improvements and plan alterations. 

Balboa Retail Partners and JLL did not respond to emails on Thursday afternoon asking for more information on the length and purpose of the construction project, which appears to be a patio, nor did they comment on Spadafora’s claim that he is closing because of conflicts with the two companies.

The final blow was a steep rent hike. Earlier this year, with his lease set to expire at the end of April, JLL offered Spadafora an increased rate of $56 per square foot – about 60% higher than the average of $30 to $40 per square foot for commercial space in the downtown area. 

A culmination of all these issues led to a decision to close.

 “I’m not going through this, especially with what I have to deal with with the Murray Street Bridge,” said Spadafora. 

Spadafora said he’s “too old” to consider reopening at another location, and is going to focus on the two other businesses, where he will attempt to relocate some employees. “I’ve always had great support from the community,” he said, “but the center just isn’t going to work out for me any longer.”

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