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The
Dealmakers Issue Number 9 for week of March 17, 1995 My Way
by Ted Kraus God
Does Bless America The
financial institutions in America have made more individuals millionaires while losing
multi-millions for themselves (and therefore us, the taxpayers) than we could ever imagine
or hope for. A
friend of mine bought a portfolio of shopping centers five years ago for a relatively high
price but was able to make the numbers work in spite of the acquisition cost. He obtained
a substantial mortgage from a major financial institution, who, after four years of
holding the paper, decided they wanted out of
"retail" in the worst way. After nearly a year of negotiating, they finally
settled with my friend for 50 cents on a dollar. In
other words, the mortgage would be cut in half if he could find a new source of financing
(which he did). Over $20 million in
"profits" just because the
institution decided retail was a "bad" risk and if they invest in retail, it
would only be in regional enclosed malls or other "trophy" property. They
were a day late and millions of dollars short. They
were providing financing when the market was in a down cycle and wanted out when the
market was recovering. Now, for about two
weeks after making this deal, my friend, to say the least, was a very, very happy trouper. Last week another major financial institution
approached him and wanted to buy the property.(after looking at the same
"numbers" the other institution looked at and was willing to take a bath on to
get out of). They offered $2 for every $1 of
the original mortgage. So, in a three month period of time, he will end up tripling his
money, not because he did anything right but because the institutions keep doing
everything wrong. He's gone from happy to
elated. Hopefully, no one who is reading this
has their pension invested with an insurance company or bank. If you do, don't plan on
retiring. The first institution was selling
when everyone else was buying but they had no idea the market had turned around, so they
continued to write off their portfolio (oh, I forgot to mention, my friend was never late
with a mortgage payment, and there were enough credit tenants on the hook to insure the
mortgage). The second institution heard
retail was hot, so they are more than willing to pay higher than top price to acquire.
There's something wrong when two major, supposedly sophisticated institutions looking at
the same set of numbers come up with an evaluation that is $60 million apart. If you own retail, all I can say is sell NOW, it
doesn't get better than this. I've decided that the real money to be made in our industry
is not in leasing, developing or managing, but understanding acquiring and selling
property at the right part of the cycle. On a
different topic, for the last year or so I've been contending that Wal*Mart was due for a
big fall because of their tremendous growth over the last few years and their increasing
arrogance. Lately, a lot of the press and the
stock market has been agreeing with me, therefore, I must have been wrong and they still
must have growth potential ahead of 'em for the near future (I'm a contrarian). There was an article in the Sunday New York Times
about Wal*Mart that I found extremely interesting. The
title was "When Wal*Mart pulls out, what's left?" It discussed the panic small town have both when
Wal*Mart enters the market and when it "pulls out." As a company, we have LOTS of experience
"handholding" small rural communities that panic when Wal*Mart enters a market
and destroys their downtown, and I can vouch for the fact that they panic. As I have said on numerous occasions, Wal*Mart
doesn't put these small specialty stores out of business, the locals do it to themselves
because they are such rotten merchants. The
article goes on to discuss what happens to these towns when Wal*Mart closes in their
community and opens a "super" store 20 miles away. Often the Wal*Mart is
replaced with their "closeout" division, "BUDS", which is a low end
"Odd-Lot Trading" type retailer. The article discusses how the town folks lose
jobs (quite often Wal*Mart is either the number one or two employer in the area), and the
inconvenience the community has of having to travel 20 miles to purchase their supplies,
and all the resentment these locals have after the closing.
Of course, they had resented Wal*Mart before their opening, so Wal*Mart can't win
no matter what they do; it's the curse of being number 1. The article also mentions how
with the closing of Wal*Mart, local stores begin to expand and new stores open. That's the key, "what goes around, comes
around." Wal*Mart's opening
"hurt" the locals, their closing encouraged the locals to expand again. There is a future for the local merchant in the
smaller markets!! With Wal*Mart committed to opening "super"
stores, their small town stores are in jeopardy of closing, which provides the local
merchants with a second chance. Maybe these
local can learn from their past mistakes and once again provide needed services to their
community and prosper. Oh, what I found VERY
funny is that is according to a Wal*Mart representative, the company has only closed
"eight or 10" since it opened the first store 33 years ago. God, I must have worked on every closed wal*Mart
in the country. They claim they don't close stores, they "consolidate". How does that expression about looking like a duck
go again? Parting
remarks Terry
Dunham, publisher of Value Retailing News (813-536-4047) recently wrote an editorial about
the "On-Line" World (Internet,
Information Highway, Prodigy, Compu$erve, the DEALMAKERS On-Line, etc). One of his editorial questions was, in essence, is
there a future "on-line' for retailing? Well, for whatever it's worth, in my humble
opinion, the answer is YES. Will it replace
conventional retailing? NO, but it will be a very strong competitor. Today, the estimates for sales being done on-line
vary from $2 billion to $12 billion. Compared
to the GNP, it's a minute number, but I don't care who you are, $2 billion to $12 billion
is a lot of money and it's growing at a phenomenal rate.
For the near term, the on-line user will be an upscale, sophisticated consumer
(that's who owns the computer, modem and has an understanding of how to make 'em work),
but that's OK, since that's who 99% of the retailers market to. In the same editorial, Terry asks his readers
questions about Value Retailing going on-line. He
wants to know how many of the readers use computers at home and at the office. Since Terry is a friend, let me try and provide
some insight based on our experience of operating our on-line commercial real estate
service for nearly two years. When we
started, about 15% of our subscribers had a computer AND modem, today it's closer to 50%
(that's the good news; the bad news is only 25% of the 50% understand how to use the
modem, except for calling America On Line). He
also wanted to know how many of his readers use an on-line services or BBS (Bulletin Board
System). Two years ago, about 10% of our
subscribers did, today it's about 33% Of that
33% only 10% of the subscribers today use a BBS (few have any idea what a BBS is or how it
works) and in most cases, their local BBS can do 'em more good than Prodigy, but that's
another story. He wanted to know how much
people would pay for these services. Unfortunately, for "us" publishers, the
answer is VERY little. Should the service
include adverting? My answer is "Only if
you want to make a profit." Last, he
wanted to know how these services would effect their traditional print methods. ANSWER, very little. We provide the Dealmakers and the Leasing Agents
Book of Leads on-line and we track "viewing".
Only 15-20% of our readers who subscribe to the board view the directory or
newsletter on line. It's used mostly by
people who don't subscribe to the "hard copy" edition. Every publication I know of is either
establishing or contemplating an on-line version, and I personally believe that on-line
"is the future for all trade publications."
But the profitable future for the publishers is still a few years off and to
complicate matters further, the future of publishing on-line will not be the Prodigys,
AOL's or BBSs but the "Home Pages" on the WWW (World Wide Web). Are you confused yet? Carolinas
Expansion Opportunities Sought Griffin
88 Stores, Inc. trades as Hi-lites at 45 locations in NC and SC. The women's apparel stores occupy spaces of 3,000
sq.ft. in outlet, power and strip centers. Preferred
anchors include Kmart, T.J. Maxx, Wal*Mart and grocery stores. Plans call for six openings in the coming 18
months. Expansion will take place in the
existing market. For more information, contact Todd Griffin,
Griffin 88 Stores, Inc., 400 Martin Street, Polkton, NC 28135; 704-272-8021, Fax 272-8028. D.A.
Kellys, Inc. trades as D.A. Kellys at 23 locations in NC, SC and VA. The ladies apparel stores, selling moderately
priced junior and misses fashions in addition to accessories, occupy spaces of 3,500
sq.ft. in regional malls and power centers. Preferred
anchors include Belk, Dillards, Hecht's and Wal*Mart.
Plans call for one opening in the coming 18 months.
Expansion will take place in the existing markets. Demographic
requirements include a population of 50,000 within five miles earning $40,000 as the
average income. Leases running seven years
are typical. For more information, contact Lee Quinn, D.A.
Kellys, Inc., Court House Square, Carthage, NC 28327; 910-947-2541, Fax 947-5773. Strawberries
Records & Tapes trades as Waxie Maxie's and Strawberries at 152 locations in NC, NY,
NJ, PA, MA, VA, DE, New England and Washington, D.C.
The music stores occupy spaces of 3,500 sq.ft. to 15,000 sq.ft. in regional malls,
power and strip centers as well as freestanding facilities.
Plans call for 50 openings in the coming 18 months.
Expansion will take place in the existing markets.
Demographic requirements include a population of 30,000 within three miles earning
$30,000 as the average income. Leases running
five years with a five-year option are the norm. For more information, contact Bob Kliewe or Mark
Briggs, Strawberries Records & Tapes, 205 Fortune Boulevard, Milford, MA 01757;
508-634-1172. Schiano's
Enterprises, Inc. trades as Schiano's Italian Restaurant at 17 locations in NC, SC, NJ and
NY. The Italian fast food restaurants occupy
spaces of 1,200 sq.ft. to 2,400 sq.ft. in strip centers.
Preferred anchors include grocery stores. Plans
call for two openings in the coming 18 months. Expansion
will take place in NC and SC. Demographic
requirements include a population of 30,000 within five miles earning $50,000 per
household. The company is franchising its
concept. Leases totaling 13 years are the
norm. For more information, contact Frank Schiano,
Schiano's Enterprises, Inc., 7201 Two Notch Road, Columbia, SC 29223; 803-788-8100. Restaurant
Management Group trades as Malone's Grill & Bar at five locations in GA. The restaurants occupy spaces of 2,000 sq.ft. to
6,000 sq.ft. in regional malls, downtown store fronts and freestanding facilities. Preferred anchors include Wal*Mart. Plans call for four openings in the coming 18
months. Expansion will take place in NC, SC,
GA, FL, AL and TN. Demographic requirements
include a population of 100,000 within three miles earning $35,000 as the average income. Leases running five years are typical. The company's newest concept is called Chicken
Grill. They are currently looking for spaces
of 1,000 sq.ft. to 2,000 sq.ft. in downtown areas and regional malls. For more information, contact Ashiq Delawalla,
Restaurant Management Group, 5300 Oakbrook Parkway #200, Norcross, GA 30093; 404-381-5300,
Fax 381-8070. Farmers
Furniture operates 108 locations in SC, GA, AL and FL.
The stores occupy spaces of 20,000 sq.ft. in strip centers. Preferred anchors include Kmart, Wal*Mart and
grocery stores. Plans call for 10 openings in
the coming 18 months. Expansion will take
place in the existing markets. For more information, contact Lee Metheng or Al
Sweeny, Farmers Furniture, 711 Bellevue Avenue, Dublin, GA 31021; 912-275-6285, 275-6131,
Fax 275-6145. Shoe
Show, Inc. trades as as The Shoe Dept. at 148 locations in 23 eastern states. The family shoe stores occupy spaces of 4,000
sq.ft. to 5,000 sq.ft. in regional malls. Preferred
anchors include department stores. Plans call
for 25 openings in the coming 18 months. Expansion
will take place in the southeast. Leases
running 10 years are typical. For more information, contact Leon Lackey, Shoe
Show, Inc., PO Box 648, Concord, NC 28026; 704-782-4143, Fax 782-3411. The
Cato Corporation trades as Cato Fashions and Cato Plus at 550 locations in AL, AR, DE, FL,
GA, IN, KS, KY, LA, MD, MO, MS, NC, OH, OK, SC, TN, TX, VA and WV. Cato Corporation also trades as It's Fashion! at
110 locations in AL, AR, FL, GA, LA, MS, NC, SC and VA.
Cato Fashions and Cato Plus stores occupy spaces of 5,000 sq.ft. 6,000 sq.ft. in
power, strip and specialty centers. Preferred
anchors include Kmart, Wal*Mart and grocery stores. Plans
call for 80 openings in the coming 18 months. Expansion
will take place in the existing markets. Leases
running five years are typical. The It's
Fashion! stores occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in strip centers. Preferred anchors include Kmart, Wal*Mart and
grocery stores. Plans call for 40 openings in
the coming 18 months. Expansion will take
place in the existing markets. Leases running
three years are typical. For more information, contact Gordon Smith, Ed
Sabatini or Webb Reyner, The Cato Corporation, 8100 Denmark Road, Charlotte, NC
28273-5975; 704-554-8510, Fax 551-7521. Garden
Ridge operates eight locations in LA, OK and TX. The
stores sell home accessories, decorative products and crafts at low prices while using
spaces of 140,000 sq.ft. in power centers and freestanding facilities. Plans call for five openings this year and seven
openings in 1996. Expansion will take place
in the Southeast within a 300 to 400 mile radius of Atlanta, GA. For more information, contact Buster Freedman,
United Equities, Inc., 6909 Ashcroft/ Ste. 200, Houston, TX 77081; 713-772-6262, Fax
981-4035. Lease
Signings Metro
Commercial Real Estate, Inc. (609-866-1900) leased 11,500 sq.ft. of space to Clothworld at
the Bensalem Center in Bensalem, PA. The
company leased 2,659 sq.ft. to Play It Again Sports at the Promenade at Exeter in Exeter,
PA. The company leased 1,280 sq.ft. to
General Nutrition Center at the Doylestown Center in Doylestown, PA. The company also leased 10,000 sq.ft. to Champps
Americana restaurant at Marlton Crossing in Marlton, NJ. Kaplan
Real Estate Co., Inc. (314-652-7000) leased 7,500 sq.ft. to New Lady Fitness at the
Florissant Meadows Shopping Center. The
company leased 2,920 sq.ft. to Lotus Garden Chinese Restaurant at the Woodson Hills
Shopping Center in Woodson Terrace, MO. The
company also leased 1,400 sq.ft. to Fast Signs at the Cave Springs Square Shopping Center
in St. Peters, MO. Terranomics
Retail Services, LP (206-453-9500) leased 15,000 sq.ft. to Blockbuster Music at Pavilions
Shopping Center in Federal Way, WA and 10,321 sq.ft. at Queen Anne Marketplace in Seattle,
WA. The company also leased 51,186 sq.ft. to
Best Products at the Mickelberry Center in Silverdale, WA. Divaris
Real Estate, Inc. (804-497-2113) leased 1,200 sq.ft. to Swanson Woodruff Optical at the
Corner Shoppes at Maxwell Lane in Newport News, VA. Rx
Look To Expand Nationally Melville
Corp. trades as CVS at 1,350 locations in ME, NH, MA, RI, NJ, NY, PA, VA, MD, DE, CT and
Washington, D.C. The drug stores occupy
spaces of 8,000 sq.ft. to 11,000 sq.ft. in regional malls, strip centers, downtown
locations and freestanding facilities. Plans
call for more than 100 openings in the coming 18 months.
Expansion will take place in existing markets. For more information, contact Dennis McMullen,
Melville Corporation, One CVS Drive, Woonsocket, RI 02895; 401-765-1500, Fax 769-6593. Harold's
Drug, Inc. trades as Harold's of Stamford at two locations in CT and MA. The drug stores occupy spaces of 3,500 sq.ft. in
regional malls and strip centers. Plans call
for two openings in the coming 18 months. Expansion
will take place in CT, NY and MA. Leases
running 10 years are typical. For more information, contact Ira Freiman,
Harold's Drug, Inc., 231 Farmington Avenue, Farmington, CT 06032; 203-677-6285. Arrow
Corp. trades as Arrow Prescription Center at 50 locations in CT, MA and PA. The drug stores occupy freestanding facilities of
1,800 sq.ft. Plans call for 45 openings in
the coming 18 months. Expansion will take
place in existing markets. Preferred sites
include urban locations. Leases running five
years are typical. For more information, contact Howard Z. Nobleman,
Arrow Corp., 312 Farmington Avenue, Farmington, CT 06032; 203-676-1222, Fax 747-3311. The
Medicine Shoppe International trades as The Medicine Shoppe at 1,000 locations nationwide
as well as internationally. The drug stores
occupy spaces of 1,000 sq.ft. in strip and specialty centers, downtown locations and
freestanding facilities. Preferred anchors
include grocery stores. Plans call for 65
openings in the coming 18 months. Expansion
will take place nationwide. Preferred
demographics include a population of 10,000 within one mile. Leases running five years with three options of
five years are typical. For more information, contact Mike Rice, The
Medicine Shoppe International, 1100 N. Lindberg, St. Louis, MO 63132; 314-993-6000, Fax
569-9780. Buyers
& Sellers of Commercial Properties Peter
J. Schweitzer & Associates, Inc. has the listing to sell University Plaza, a 21-acre
retail property located in the south. The
113,000 sq.ft. newly renovated project is 80% occupied with below market rents. Expanding the project by 70,000 sq.ft. is
possible. The asking price is $2.4 million. Peter J. Schweitzer & Associates, Inc. is also
in the market to purchase commercial property between 20,000 sq.ft. and 150,000 sq.ft. Sites may have vacancies or below market rents. Florida projects are preferred. For details, contact Peter J. Schweitzer at
(305-975-7553), Fax (975-7663). Intergroup
Development, Inc. is in the market for a first class office and retail property. Sites located in the south and southwest are
preferred. Prices of $8 million or higher
will be considered. For details, contact Tandy O. Lofland at
(713-627-2131), Fax (965-0600). KLNB,
Inc. brokered a deal with Wal*Mart purchasing two sites in VA. Construction on the two new stores, one located in
Kingstowne and one in Hybla Valley, will begin next month.
Each store will encompass 126,000 sq.ft. For details, contact Maury Levin, Adam Miller or
Sam Hodges at (703-356-8230). Colliers
Macaulay Nicolls International and Western Associates brokered the sale of Clear Creek
Plaza, an eight movie screen General Cinema Theater and a 30,599 sq.ft. office building in
Kitsap, WA. The property was purchased by
C.D. Stimson Company for a 1031 exchange from Winmar of Kitsap, Inc., a subsidiary of
Winmar Company, Inc. Winmar is the commercial
real estate subsidiary of SAFECO Properties, Inc. whose parent company is SAFECO Corp. in
Seattle, WA. The total price of the sale was
$6.172 million. For details, contact Paul Sleeth or Terry Moss at
(206-223-0866). JBS
& Associates, Inc. has been retained by The Balcor Company to conduct an auction of Union Station in
Indianapolis, IN. The auction will be held
May 10. Union Station, last used as a train
station in the 1960s, is currently a 400,000 sq.ft. retail project housing more than 60
specialty shops, restaurants and nightclubs. An
852-space parking garage is included. The
minimum bid for the property has been set at $2 million. For details, contact JBS at (1-800-525-0777). The
Neville Companies has the listing to sell a 16,000 sq.ft., 90% occupied strip center in
Colchester. VT. The asking price is $1.5
million based on a 9.5% cap rate. The
company also has the listing to sell 15 acres of raw land in South Burlington, VT. The site is zoned for retail, commercial or
industrial use and has city water and sewer service.
The asking price is $2.025 million. For details, contact Bill Sheedy at
(802-862-0208), Fax (860-6628). Gadco
Real Estate Co., Inc. has the listing to sell the 162,000 sq.ft. Lake Park Shopping Center
in Lake Park, FL. The project is anchored by
Kmart and J. Byrons. The asking price is
$5.75 million. For details, contact Seth Gadinsky at
(305-868-9188), Fax (865-2463). Kranzco
Realty Trust acquired five community shopping centers, totaling 680,000 sq.ft., in MD and
VA for approximately $49.3 million, comprised of $1 million in cash, $11.1 million of
newly authorized Convertible Preferred Stock and the assumption of $37.2 million of
existing debt. The centers were purchased
from private partnerships controlled by Southern Management Company. The centers acquired included the 330,000 sq.ft.
Marumsco-Jefferson Plaza in Woodbridge, VA which is anchored by Giant Food, Peebles, G.C.
Murphy and CVS; the 131,000 sq.ft. Culpeper Town Mall in Culpeper, VA which is anchored by
Central Tractor and G.C. Murphy; the 102,400 sq.ft. Hillcrest Plaza in City of Frederick,
MD which is anchored by Shopper's Food Warehouse; the 86,000 sq.ft. Coral Hills Shopping
Center in Coral Hills, MD which is anchored by Shopper's Food Warehouse, Trak Auto and CVS
and the 26,000 sq.ft. Campus Village in College Park, MD which serves the University of
Maryland. The combined occupancy rate of the
five centers is 94%. For details, contact Kranzco Realty Trust at
(610-941-9292), Fax (941-9193). J.
Baker, Inc. Looks To Expand Its Four Divisions J.
Baker, Inc. trades as Fayva Shoes, Parade of Shoes, Work'n Gear and Casual Male Big &
Tall. The Fayva Shoes division, which opened
its first store in 1971, operates 376 locations in CA, CT, DE, FL, IL, IN, MA, ME, NH, NJ,
NY, PA, RI, TX, VA and VT. Spaces of 2,500
sq.ft. to 4,000 sq.ft. are used in central business districts, community shopping centers,
end caps and freestanding facilities. Preferred
co-tenants include food and discount department stores.
Plans call for 25 openings this year. Expansion
will take place in the Northeast and Midwest. In
1994, the division opened one store. Preferred
demographics include a population of 150,000 within five miles earning $40,000 as the
average household income. Roads with traffic
counts of at least 30,000 cars are also preferred. Leases
of five years with multiple options are typical. The Parade of Shoes division, which opened its
first store during 1985, operates 196 locations in CT, IL, ME, MA, MD, MI, NH, NJ, NY, PA,
RI, VA and Washington, D.C. Spaces of 1,800
sq.ft. are used in regional malls, power centers and downtown store fronts. Preferred co-tenants include T.J. Maxx and
Filene's Basement. Plans call for 15 openings
in 1995 and 15 openings in 1996. Expansion
will take place throughout the Northeast, Mid-Atlantic and Midwest. In 1994, the division opened 46 stores. Preferred demographics include a population of
80,000 within three miles with middle to upper incomes.
Leases of five years with multiple options are typical. The Work'n Gear division, which opened its first
store in 1984, operates 61 locations in CT, DE, IL, MA, ME, MI, NH, NJ, NY, PA and RI. The work wear stores occupy spaces of 3,500 sq.ft.
to 4,000 sq.ft. in strip center point positions and freestanding facilities. Preferred co-tenants include home improvement
stores. Plans call for 15 openings in 1995
and 15 openings in 1996. Expansion will take
place throughout the Northeast, Mid-Atlantic and Midwest.
In 1994, the division opened nine stores. Preferred
demographics include a population of 150,000 with five miles and 250,000 within 10 miles
having middle incomes. Roads with traffic
counts of at least 40,000 cars are also preferred. Leases
of five years with multiple options are typical. The Casual Male Big & Tall division, which
opened its first store in 1970, operates 320 locations in AL, AR, AZ, CA, CO, CT, DE, FL,
GA, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MO, NE, NH, NJ, NM, NY, NC, ND, OH, OK,
PA, RI, SC, SD, TN, TX, VA, VT, WI and WV. The
apparel stores for big and tall men occupy freestanding facilities of 3,000 sq.ft. Plans call for 85 openings in 1995 and 85 openings
in 1996. Expansion will take place in the
continental United States. In 1994, the
division opened 66 stores. Preferred
demographics include a population of 150,000 within five miles and a trade area population
of 850,000 having middle incomes. Roads with
a daily traffic count of at least 40,000 cars are also preferred. For more information, contact Joseph Cornely, III,
J. Baker, Inc., 555 Turnpike Street, Canton, MA 02021; 617-828-9300, Fax 821-0614. Tenants
Expanding Nationwide Montgomery
Ward, Inc. trades as Montgomery Ward at 380 locations in 39 states, as Lechmere at 28
locations in MA, CT, RI, NH and VT and as Electric Avenue & More at six locations in
KY, WI, SC and MN. Spaces of 90,000 sq.ft. to
120,000 sq.ft. are used for Montgomery Ward stores, 65,000 sq.ft. for Lechmere stores and
55,000 sq.ft. for Electric Avenue & More stores in regional malls and strip centers. Plans call for 20 openings in the coming 18
months. Expansion will take place nationwide. For more information, contact William Russell,
Montgomery Ward, Inc., One Montgomery Ward Plaza, Chicago, IL 60671-0001; 312-467-2000,
Fax 467-7992. The
Timberland Company trades as Timberland Retail at 17 factory outlet locations and 14
traditional retail locations nationwide. Spaces
of 4,000 sq.ft. are used for the factory stores and 7,000 sq.ft. for the full-price
stores. Plans call for the opening of 11
outlet stores and five traditional stores nationwide in the coming 18 months. Leases running 10 years are typical for mall
stores and three to five years for outlet stores. For more information, contact Peter Berman, The
Timberland Company, 200 Domain Drive, Stratham, NH 03805; 603-772-9500, Fax 773-1640. The
Tie Rack, Inc. trades as The Tie Rack at 40 locations throughout North America. The stores, selling ties and scarves, occupy
spaces of 600 sq.ft. in regional malls. Plans
call for five openings in the coming 18 months. Expansion
with take place nationwide. Leases running 10
years are typical. For more information, contact Heather La Rocque,
The Tie Rack, Inc., 145 Renfrew Drive Unit 130, Markham, Ontario, Canada L3R 9R6;
905-470-6290, Fax 479-2546. Heel
Quik!, Inc. trades as Heel Quik! and Heel/Sew Quik! at more than 440 locations nationwide
and internationally. The shoe repair,
clothing alterations and monogramming stores occupy spaces of 330 sq.ft. to 600 sq.ft. in
regional malls, downtown store fronts, power and strip centers. Preferred anchors include T.J. Maxx and grocery
stores. Plans call for more than 50 openings
in the coming 18 months. Expansion will take
place worldwide, with growth bring franchise driven.
Preferred demographics include a population of 100,000 within one mile earning
$30,000 as the average household income. Leases
running five years are typical. For more information, contact Raymond Robbins,
Heel Quik!, Inc., 1720 Cumberland Pt. DR. #16, Marietta, GA 30067; 404-955-3375, Fax
951-2666. Sally
Beauty Co., Inc. trades as Sally Beauty Supply at 1,425 locations nationwide. The beauty supply stores occupy spaces of 1,600
sq.ft. in downtown store fronts, power and strip centers.
Preferred anchors include Wal*Mart, Kmart, Target, grocery stores and drycleaners. Plans call for 150 openings in the coming 18
months. Expansion will take place nationwide. Preferred demographics include a population of
29,000 within five miles earning $34,000 as the average income. Leases running five years are the norm. For more information, contact Greg Turrel, Sally
Beauty Co., Inc., 3900 Morse, Denton, TX 76205; 817-898-7608, Fax 381-9022. Spencer
Gifts, Inc. trades as Spencer Gifts at 500 locations nationwide. The gift stores occupy spaces of 1,500 sq.ft. to
1,700 sq.ft. in regional malls. Preferred
anchors include Lord & Taylor, national tenants and fashion department stores. Plans call for 50 openings in the coming 18
months. Expansion will take place nationwide. Preferred demographics include a population of
400,000 people within 10 miles earning $32,000 as the average income. Leases running 10 years are typical. For more information, contact Ken Garagiola or
Susan Waldman, Spencer Gifts, Inc., 6826 Black Horse Pike, Pleasantville, NJ 08232;
609-645-5303, Fax 645-5448. Office
Depot, Inc. trades as Office Depot at 450 locations in 35 states, Washington, D.C. and
Canada. The office supply stores occupy
spaces of 30,000 sq.ft. in regional malls, freestanding facilities, power and strip
centers. Preferred anchors include other
category killer stores. Plans call for 120
openings in the coming 18 months. Expansion
will take place nationwide. For more information, contact John O. Grode,
Office Depot, Inc., 2200 Old Germantown Road, Delray Beach, FL 33445; 407-265-4258, Fax
274-7970. Exclusive
Leasing & Management Assignments Mid-America
Real Estate Corp. (708-954-7300) has been appointed the exclusive leasing agent by
KinderCare Learning Centers for the expansion of its KinderCare and Kid's Choice
facilities in the Greater Chicago area. KinderCare
currently has 60 units in the Chicago market. The
units occupy freestanding facilities of 6,000 sq.ft. to 11,000 sq.ft. typically near
shopping centers and new residential developments. KinderCare
is looking to make deals by way of land purchase or build-to-suits. The company expects to add 12 KinderCare
facilities in the coming year. Kid's Choice
centers also occupy freestanding facilities of 6,000 sq.ft. to 8,000 sq.ft. near shopping
centers. Preferred demographics include a
population of 8,500 within one mile, 80,000 within three miles and 150,000 within five
miles, having a median family income of $50,000. The
company expects to add 15 Kid's Choice centers in the coming year. The
Mitchell Company (205-476-1200) has been awarded the management and leasing contract for
the Midtown Square Shopping Center in Slidell, LA. The
150,000 sq.ft. project is anchored by Delchamps. Plans
are underway to remodel and expand the center. Legend
Properties, Inc. (609-231-1010) has been appointed the exclusive leasing agent for Petco
Animal Supplies, Inc. for the metro Philadelphia area.
Petco recently opened a 20,000 sq.ft. store at Warminster Plaza in Warminster, PA,
a 20,000 sq.ft. store at the South Mall in Allentown, PA and a 10,000 sq.ft. store in
Wayne, PA in addition to stores in Montgomeryville, PA and Oxford Valley, PA. Neal
Realty & Investments, Inc. (305-568-0530) has been named exclusive lease agent for
University Shoppes in Lauderhill, FL. The
51,747 sq.ft. project has 5,350 sq.ft. available for lease.
The company was also named exclusive leasing agent for Bailey Road Plaza in Ft.
Lauderdale, FL. The 6,200 sq.ft. project has
1,500 sq.ft. available for lease. Food
Tenants Expand from Coast-to-Coast Fire
Glazed Ham, Inc. trades as Fire Glazed Ham Store and Cafe at 15 locations in WI, KY, OH,
NJ and NY. The company operates 15 permanent
stores and 130 seasonal units. The food
stores sell spiral sliced hams and specialty foods, in addition to their cafe business,
while using spaces of 2,000 sq.ft. in power and strip centers. Preferred anchors include upscale supermarkets. Plans call for 20 openings in the coming 18
months. Expansion will take place in the
Midwest, East Coast and West. The company is
franchising and asks a franchisee to sign a 10-year lease.
For over 30 years, the company franchised as Swiss Colony Stores, Inc. For more information, contact Gene Curran, Fire
Glazed Ham, Inc., 1112 7th Avenue, Monroe, WI 53566; 608-328-8803, Fax 328-8457. Carousel
Snack Bars trades as A&W Hot Dogs & More at 204 locations nationwide. The fast food restaurants use spaces of 150 sq.ft.
in kiosks, 600 sq.ft. in food courts, and 1,000 sq.ft. for in-line stores in regional
malls. Preferred anchors include Lord &
Taylor. Plans call for 10 openings in the
coming 18 months. Expansion will take place
nationwide. Leases running 10 years are
typical. For more information, contact Anthony Dammicci,
Carousel Snack Bars, 9549 Penn Avenue South, Minneapolis, MN 55431; 612-887-5256, Fax
887-5298. The
Manhattan Bagel Co. trades as Manhattan Bagel at 140 locations along the Eastern seaboard,
OH and TX. The bagel bakeries and restaurants
occupy spaces of 1,300 sq.ft. to 2,000 sq.ft. in power and strip centers, downtown store
fronts and freestanding facilities. Preferred
anchors include supermarkets, video stores, drycleaners, drug stores and convenience
stores. Plans call for 150 openings in the
coming 18 months. Expansion will take place
in the existing markets as well as the Midwest and West. Leases
running 10 years with options are typical. The
company is franchising. For more information, contact William A. Dentato,
Esq., The Manhattan Bagel Co., 15 Meridian Road, Eatontown, NJ 07724; 908-544-0155, Fax
544-1315. 99
West, Inc. trades as Ninety Nine Restaurants at 35 locations in MA and NH. The restaurants occupy spaces of 6,000 sq.ft. in
power centers and freestanding facilities. Preferred
anchors include Wal*Mart. Plans call for
eight openings in the coming 18 months. Expansion
will take place in RI, CT and ME. Preferred
demographics include a population of 100,000 within seven miles earning $50,000 as the
average income. Leases running 20 years are
typical. For more information, contact Dana Doe, 99 West,
Inc., 160 Olympia Avenue, Woburn, MA 01801; 617-933-8999, Fax 933-0821. Sweet
City International trades as Sweet City at five locations in the Mid-Atlantic states. The bulk candy stores occupy spaces of 600 sq.ft.
in regional malls, specialty and outlet centers. Preferred
anchors include JC Penney and Lord & Taylor. Plans
call for 12 openings in the coming 18 months. Expansion
will take place in the existing market. Leases
running 10 years are typical. The company is
franchising. For more information, contact Joseph L. Caffrey,
Sweet City International, 1604 Hilltop, #204-A, Virginia Beach, VA 23451; 804-422-3061,
Fax 491-5543. Ice
Cream & Yogurt Club, Inc. trades as Ice Cream and Yogurt at 10 locations in FL. The stores use spaces of 300 sq.ft. to 12,000
sq.ft. in specialty centers. Preferred
anchors include grocery stores. Plans call
for two openings in the coming 18 months. Expansion
will take place in FL. The company is
franchising. Preferred demographics include a
population of 50,000 within three miles earning at least $45,000 as the average income. Leases running five to 10 years are typical. For more information, contact Gary Pettifor, Ice
Cream & Yogurt Club, Inc., 1580 High Ridge Road, Boynton Beach, FL 33426;
800-535-7711, Fax 407-731-0311. D'Angelo,
Inc. trades as D'Angelo Sandwich Shop at 220 locations in ME, NH, VT, MA, CT, RI, NY, FL
and TX. The restaurants occupy spaces of
2,100 sq.ft. in strip centers and freestanding facilities.
Plans call for 35 openings in the coming 18 months. Expansion will take place
throughout the Northeast, primarily in New England. Preferred
demographics include a population of 35,000 within three miles earning an average
household income of $30,000. The company
usually signs a five year lease with options totaling 20 years. For more information, contact Stephen MacLaughlin,
D'Angelo, Inc., 321 Manley Street, West Bridgewater, MA 02379; 508-583-2116, Fax 588-3462. Hooters
of America, Inc. trades as Hooters at 144 locations nationwide. The casual, finger-food restaurants occupy
freestanding facilities of 4,000 sq.ft. to 6,000 sq.ft.
Preferred anchors include Target, Wal*Mart, T.J. Maxx, Kmart and sporting goods
chains. Plans call for 50 openings in the
coming 18 months. Expansion will take place
nationwide. Preferred demographics include a
population of 200,000 within five miles. Leases
running five to 10 years are typical. The
company is franchising. For more information, contact Greg Michael,
Hooters of America, Inc., 4501 Circle 75 Parkway/ Ste. 5110, Atlanta, GA 30339;
404-951-2040, Fax 933-9464. M.T.C.
Management, Inc. trades as Togo's Eatery at 170 locations in CA, OR, NV, CO and WA. The fast food restaurants occupy spaces of 1,200
sq.ft. to 1,600 sq.ft. in power and strip centers as well as freestanding facilities. Preferred anchors include Wal*Mart, Kmart, grocery
stores and theaters. Plans call for 20
openings in the coming 18 months. Expansion
will take place in its existing markets as well as AZ.
Preferred demographics include a population of 30,000 within three miles earning
$36,000 as the average income. A daytime
population of 10,000 within one mile is also preferred.
Leases running 10 years are typical. The
company is franchising. For more information, contact Marcelline Mahern,
M.T.C. Management, Inc., 900 East Campbell Avenue, Campbell, CA 95008; 408-377-1754, Fax
377-4130. Spoons
trades as Spoons Grill & Bar at 20 locations in CA.
The restaurants occupy spaces of 5,000 sq.ft. to 6,500 sq.ft. in regional malls,
power and strip centers as well as freestanding facilities.
Preferred co-tenants include movie theaters. Plans
call for five openings in the coming 18 months. Expansion
will take place in the existing market. Preferred
demographics include a population of 100,000 within three miles earning $25,000 as the
average income. Leases running 20 years are
typical. For more information, contact Mike Bean, Spoons,
450 Newport Center Drive, Newport Beach, CA 92660; 714-721-8000. Apparel
Retailers Grow in Size The
Clothestime, Inc. trades as Trend Club at 11 locations in AZ and CA. The junior apparel stores occupy spaces of 3,500
sq.ft. to 4,500 sq.ft. in outlet centers. Plans
call for five openings in the coming 18 months. Expansion will take place in CA, FL, TX
and NY. Demographic requirements include a
population of 100,000 within three miles earning a median income of $30,000. The company typically signs a 10-year lease. For more information, contact Jeffrey R. Dake, The
Clothestime, Inc., 5325 East Hunter Avenue, Anaheim, CA 92807; 714-779-5881, Fax 779-0512. Ross
Stores, Inc. trades as Ross Dress for Less at 275 locations in CA, OR, WA, NM, NV, AZ, FL,
TX, ID, GA, PA, MD, VA, CO, HI, NJ, OK and VT. The
off-price apparel stores occupy spaces of 28,300 sq.ft. in regional malls, downtown store
fronts, power and strip centers. Preferred
anchors include Target, Home Depot, craft stores, office product stores, electronics
stores and grocery stores. Plans call for 40
openings in the coming 18 months. Expansion
will take place in existing markets. Demographic
requirements include a population of 100,000 within three miles earning $40,000 as the
average income. Leases running 10 years are
typical. For more information, contact Gregg McGillis, Ross
Stores, Inc., 8333 Central Avenue, Newark, CA 94560; 510-505-4764, Fax 505-4174. United
Fashions of Texas trades as Melrose at 38 locations in Texas. The budget-priced women's and children's fashion
stores occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in power and strip centers. Preferred anchors include Kmart, Target and
Wal*Mart. Plans call for 10 openings in the
coming 18 months. Expansion will take place
in its existing market. Demographic
requirements include a population of 25,000 within five miles earning $15,000 as the
average income. Leases running three years
are typical. For more information, contact Reuben Bar Yadin,
United Fashions of Texas, 4629 Macro Drive, San Antonio, TX 78218; 210-662-7140. The
Neiman Marcus Group trades as Contempo Casuals at 250 locations nationwide. The junior and missy stores occupy spaces of 3,500
sq.ft. to 4,500 sq.ft. in regional malls. Preferred
anchors include upscale fashion stores. Growth
opportunities are sought nationwide. Leases
running 10 years are the norm. For more information, contact Peter D. Cohen, The
Neiman Marcus Group, 5433 W. Jefferson Boulevard, Los Angeles, CA 90025; 213-930-4512, Fax
857-1359. Frayne
Fashions trades as Frayne Factory Outlet and Frayne Fashions at 32 locations in FL. The stores sell misses casual wear and swimwear,
80% of which is factory direct, using spaces of 2,800 sq.ft. to 3,400 sq.ft. in strip
centers. Preferred anchors include grocery
stores, drug stores and junior department stores. Plans
call for 10 openings in the coming 18 months. Expansion
will take place in the existing market. Demographic
requirements include a trade area with retirees and tourists. Leases running three years are the norm. For more information, contact Rebecca Frayne
Morton, Frayne Fashions, 6402 West Linebaugh Avenue, Tampa, FL 33625; 813-961-7171, Fax
264-7928. Space
Place California Mt.
Shasta City- Mt. Shasta Shopping Center is
anchored by Ray's Sentry Supermarket and Thrifty Drug Store. The 91,180 sq.ft. project has pad sites of 2,500
sq.ft., 3,000 sq.ft. and 10,000 sq.ft. available as well as several in-line spaces for
lease. The site fronts Lake Street and is 400
yards from the Interstate 5 exit ramp. Daily
traffic count of the area is 18,000 cars. Demographics
include a trade area population of 20,000 which tourists double during the summer and
winter months. The average family income of
the trade area is $17,000. For details, contact Liz Hemsted of Menlo
Management Company at (916-547-3705), Fax (365-0451). Florida West
Palm Beach- Shops at Palm Coast is anchored
by Byron's, Woolworths, Walgreens and Linen Supermarket.
Negotiations are being finalized for a Winn-Dixie Marketplace. The 250,000 sq.ft. project has bays from 1,400
sq.ft. to 10,000 sq.ft., a big box of 25,000 sq.ft. and a freestanding restaurant building
of 5,800 sq.ft. available for lease. The site
fronts Dixie Highway (US Highway 1). Demographics
include a five-mile population of 170,000 with an average household income of $45,000. For details, contact Carol Bush of Capital Realty
Advisors, Inc. at (407-744-1088), Fax (744-9374). Massachusetts Marlborough- R.K. Centre is anchored by Victory Supermarket,
Fashion Bug and Blockbuster Video. The
150,000 sq.ft. strip center has spaces of 2,000 sq.ft. and 25,000 sq.ft. available for
lease. The center is expected to open in May. The site fronts Route 20, one-half mile west of
Route 495. Demographics include an average
income of $53,000 for the trade area. For details, contact David Katz of R.K. Associates
at (617-527-4100), Fax (527-4102). New
York Town
of Greece- Erie Canal Commons is a 76,500
sq.ft. strip center to be developed this summer. Spaces,
including four pad sites, are currently available. The
site is located at the intersection of Long Pond Road and Ridgeway Avenue, one mile from
Route 390. Daily traffic counts of the
intersection total 61,500 cars. Demographics
include a three-mile population of 64,791 with an average household income of $43,116. For details, contact John Harrison of Richard
Gollel & Companies, Inc. at (716-225-6360), Fax (225-5164). Ohio Maumee- Golden Gate Shopping Center is anchored by
FoodTown Supermarket
and The Pharm. The 92,668 sq.ft. strip center
has spaces of 1,200 sq.ft. and 13,500 sq.ft. available for lease. The site is located at the intersection of Anthony
Wayne Trail and Conant. Demographics include
a daily traffic count of 45,000 cars, a three-mile population of 48,901 with an average
income of $52,560 and a five-mile population of 97,571 with an average income of $48,822. In Springfield Township, Springvalley Shops is
located across from the 550,000 sq.ft. Spring Meadows Shopping Center anchored by Service
Merchandise, Marshalls, Builders Square and Krogers.
The 12,000 sq.ft. strip center has spaces of 1,800 sq.ft. to 2,400 sq.ft. available
for lease. The site is located at the
intersection of Airport Highway and McCord Road. Demographics
include a daily traffic count of 38,000 cars, a three-mile population of 52,426 with an
average income of $38,557 and a five-mile population of 124,934 with an average income of
$40,257. For details, contact Mark Zyndorf at
Zyndorf/Serchuk, Inc. at (419-249-7070), Fax (255-2439). Toledo- North Towne Commons is anchored by Target, Sam's
Wholesale Club and Builders Square. The
387,000 sq.ft. power center has a 65,000 sq.ft. space available. The site is located at the intersection of Alexis
Road and Lewis Road. For details, contact Ed Eickhoff at
Ramco-Gershenson, Inc. at (810-350-9900). Supermarkets
Expanding Giant
Eagle, Inc. trades as Valu King at 131 locations in OH, PA and WV. The supermarkets occupy spaces of 55,000 sq.ft. to
90,000 sq.ft. in power and strip centers as well as freestanding facilities. Preferred anchors include Kmart and Wal*Mart. Plans call for 10 openings in the coming 18
months. Expansion will take place in the
existing market. Leases running 20 years are
typical. For more information, contact David Daniel, Giant
Eagle, Inc., PO Box 11591, Pittsburgh, PA 15238; 412-963-3521, Fax 963-3522. Giant
Food Stores, Inc. trades as Giant Food Stores at 65 locations in PA, MD, VA and WV. The supermarkets occupy spaces of 39,000 sq.ft. to
65,000 sq.ft. in power, strip and specialty centers as well as freestanding facilities. Preferred anchors include major department stores
and major home improvement centers. Plans
call for 15 openings in the coming 18 months. Expansion
will take place in the existing market. Demographic
requirements include a population of 30,000 within three miles earning $15,000 as the
average income. Leases running 20 years with
six options of five years are typical. For more information, contact Richard Welsh, Giant
Food Stores, Inc., PO Box 249, Carlisle, PA 17013; 717-249-4000, 249-5871. Wegmans
Food Market operates 51 locations in NY and PA. The
supermarkets occupy spaces of 75,000 sq.ft. to 100,000 sq.ft. in power and strip centers
as well as freestanding facilities. Plans
call for six openings in the coming 18 months. Expansion
will take place in Central and Western NY, in addition to Northern and Central PA. Leases running 20 years are typical. For more information, contact Ralph Uttaro,
Wegmans Food Market, PO Box 844, Rochester, NY 14692-0844; 716-328-2550, 464-4636. Ronetco
Supermarkets, Inc. trades as ShopRite Supermarkets at five locations in NJ. The stores occupy spaces in strip centers. Preferred anchors include Caldor and Wal*Mart. Plans call for two openings in the coming 18
months. Expansion will take place in Northern
NJ and Eastern PA. Preferred demographics
include a population of 60,000 within four miles earning $50,000 as the average income. Leases of 40 years are typical. For more information, contact Pasquale T. Romano
Sr., Ronetco Supermarkets, Inc., Morris Canal Plaza, 1070 U., Ledgewood, NJ 07852-9735;
201-927-8300, Fax 927-4953. Shoppers
Food Warehouse Corp. trades as Shoppers Club at 35 locations in MD and VA. The supermarkets occupy spaces of 65,000 sq.ft. to
75,000 sq.ft. in power and strip centers. Plans
call for the openings of four units in the coming 18 months. Expansion will take place in the existing markets. For more information, contact Robert N. Herman,
Shoppers Food Warehouse Corp., 4600 Forbes Boulevard, Lanham, MD 20706; 301-306-8600, Fax
306-9600. |