Playa Mesa, the upscale Mexican restaurant that anchored a stretch of East 17th Street in Costa Mesa for eight years, closed its doors last Saturday. The restaurant was run by Newport Beach's Lounge Group, the hospitality company behind several other bars and restaurants along Orange County's coast.
According to Orange County Register, Playa Mesa's owners did not give a reason for the closure, thanking customers in a statement for their meals, celebrations and memories at the restaurant. Playa Mesa was founded by Mario Marovic and Andrew Gabriel, whose Lounge Group portfolio also includes High Horse Saloon, Madero 1899, Stag Bar + Kitchen and Blackie's By The Sea.
Wild Goose Tavern, another Lounge Group concept next door on 17th Street, remains open. The newspaper's dining critic, Brad A. Johnson, reviewed Playa Mesa positively in 2018, praising its menudo, tres leches, cocktails and pork chop al pastor. Sourdough & Co. plans to open nearby in Costa Mesa, according to the sandwich chain's own website.
A Sister Concept Already Went Family-Friendly
Playa Mesa's closure follows the same fate for its 17th Street sister venue, The Country Club, which closed this past May after eight years, as reported by Back Bay Buzz. That venue, once known for scratch cooking and late-night music, is being fully converted into a family-friendly restaurant, ending its strict 21-and-over nightlife format.
Lounge Group co-founder Mario Marovic started his career as a corporate banker at Silicon Valley Bank before leaving finance to open Landmark Steakhouse in Corona del Mar, according to Stu News Newport. He went on to build a roughly 14-establishment Orange County portfolio, including Malarky's Irish Pub and Dory Deli, and was named Newport Beach Chamber Business Person of the Year in 2022.
17th Street's Bigger Makeover
Playa Mesa itself was born out of market research: Lounge Group ran community focus groups that identified strong local demand for an upscale Mexican concept before opening the restaurant directly adjacent to Wild Goose Tavern in 2021, per the Orange County Business Journal. The same publication has documented how Lounge Group grew to 11 concepts across Orange County in six years by acquiring aging bars in prime coastal locations and giving them extensive remodels, starting with early successes like Stag Bar and Wild Goose Tavern.
Playa Mesa's closure adds to a wave of turnover along 17th Street. Santa Monica Seafood permanently closed its market and cafe on the street in February 2025 after nearly three decades in Costa Mesa, citing a challenging operational environment for U.S. restaurants, according to SeafoodSource.
Big Names Move Into the Empty Storefronts
That vacant space won't stay empty for long. Newport Beach-based Bear Flag Fish Co. submitted city development plans in October 2025 to take over the former Santa Monica Seafood site at 154 E. 17th St., marking what would be its fourth Southern California location, as reported by WhatNow Orange County. The seafood counter chain was founded in 2007 by fisherman Thomas Carson.
A few doors down, upscale grocer Erewhon has signed a lease for a 20,092-square-foot former warehouse at 140 E. 17th St., with the Orange County Business Journal reporting it's targeting a September 2027 opening for its first Orange County store. Erewhon currently operates 12 Southern California locations with several more in development, and the Costa Mesa site is set to take over what had been a T-shirt warehouse.
Parking Crunch and a Changing Streetscape
The corridor's growth hasn't come without growing pains. In November 2024, the Costa Mesa City Council approved a conditional use permit legalizing shared valet parking for Playa Mesa and Peet's Coffee. The program had already been managing severe peak-hour parking constraints on 17th Street for four years before receiving that formal approval, according to a public record from the Costa Mesa City Council.
Independent, long-tenured businesses have also fallen away. The 65-year-old Baycrest Caps & Corks bottleshop shut down this spring after its landlord declined to renew its lease, even though the shop offered 20% above asking price, as Hoodline reported on the 65-year-old bottleshop's closure.
Real estate analysts see the shifts as part of a broader repositioning. Commercial redevelopment and high-profile retail lease sign-ons along the corridor have driven up local commercial interest, bridging the lifestyle appeal between Costa Mesa and neighboring Newport Beach, according to Onyx Homes, which notes Eastside Costa Mesa still offers lower price points than coastal Newport Beach.
