Hillcrest’s Financially-troubled Universal Nightclub Closes

By Leslie Wolf Branscomb

The Universal nightclub on University Avenue closed its doors Jan. 3, after less than two years in business.
The 15,000-square-foot Hillcrest club was in financial trouble since its inception, said owner James Brennan. The opening of the nightclub was delayed due to a variety of problems, including disagreements between Brennan and the property’s landlord. When the club finally opened in April, 2008 — a year later than planned — the economy had already begun its downhill slide.
“It’s just been an ongoing uphill battle from before we ever opened the place,” Brennan said. A major setback came with the loss of a loan just prior to opening, he said. “The lender pulled the loan off the table, and then the entire landscape changed.”
“Then there were a ton of lawsuits,” Brennan added, including two between Brennan and Universal’s landlord. “We spent a lot of time fighting lawsuits and spending money on attorney’s fees.”
“But it is what it is,” Brennan said. “Life is about timing, and this was timed pretty much as badly as you could do it, from start to finish.”
The club and its restaurant, Dish, had been for sale for more than a year. Brennan said a few buyers have expressed interest, and the club may be sold soon. However, he does not expect the sale to recoup the roughly $4 million cost of opening Universal. “There will be a significant loss,” he said.
Brennan, who lives in La Jolla, has developed several upscale nightclubs and restaurants. Perhaps his best-known venture is Stingaree, on Sixth Avenue in the Gaslamp Quarter, a hot spot frequented by celebrities and pro football players. He also owned The Witherby and Side Bar, both on Market Street in the Gaslamp, and Bar West in Pacific Beach. All three properties have been sold, and while Witherby is closed, Side Bar and Bar West are still in business.
Brennan is currently working on a new restaurant venture with TV’s “Top Chef” finalist Brian Malarkey, who was formerly chef at The Oceanaire seafood restaurant on J Street in the Gaslamp. The new restaurant will open in the space previously occupied by Z Gallerie home furnishings, on Fifth Avenue at Market Street. The name of the restaurant has yet to be announced, but it is projected to open in early to mid-summer.