Issue 13 for the week of April 14, 1995

The Dealmakers Issue Number 13 for the week of April 14, 1995.

My Way by Ted Kraus

"IN 1943 RENTS IN MIDDLE MARKETS WERE $5 TO $6 PER SQ FT, TODAY RENTS IN MIDDLE MARKETS ARE $5 TO $6 PER SQ FT"

I was talking to Ross Dworman, president of RD Capital (actually they're now called Acadia Management, since they acquired another management/leasing company and nearly doubled in size, but I still call all Macy's in New Jersey, Bambergers; I'm old, once I learn something I hate to have to relearn it) and the topic of middle markets came up. Ross made a statement that made me laugh and which I had to agree with 100%. He said: "In 1943, rents in middle markets were $5 to $6 per sq ft, in 1995, they're $5 to $6 per sq ft. That's why I don't invest in small markets." For years I've been advising clients against buying property in these middle markets. When I say middle markets, I'm referring to markets that have a population in its primary trading area (usually 15-20 miles) of 125,000 people or less. My arguments against smaller markets have always been the difficulty of attracting national and regional retailers to the property, especially if and when a replacement anchor is needed. In the early 80's we did dozens of consulting assignments advising against acquiring the "Roses' anchored" center because Wal*Mart had just opened five blocks away in their "humongous" facility (50-70,000 sq ft) and if Roses' should leave, for any reason, there wouldn't be a replacement tenant readily available. The vast majority of our clients didn't heed our advice and the banks eventually owned the property. Of course, if I was really smart, I'd be rich, so don't take these statements too seriously. My arguments today haven't changed much. Ross' statement, however, is a better argument than mine for not investing in these small communities. There's little upside and lots of potential downside in these markets for the "non local" investor/owner (the "local" investor buying, leasing and managing this type of center is another story). Sure, it's great that you can buy a property at an 11-1/4% CAP rate today that might be returning an 11-1/4% in eight years, IF YOU'RE LUCKY and nothing goes wrong, but I'd rather buy a center at 9-1/2% CAP today, and with a little luck and some modest inflation, show an 18 to 23% return in four to six years and, in my humble opinion, there's substantially less risk involved.

On the same subject, the next day I was talking to a leasing agent for a center in one of these smaller markets. He was telling me what a great center he has (it is 34% vacant, but has "fantastic potential") and that it's the third best center in town (there are only seven centers in the market but that's beside the point). Being young, eager and a professional, he was leasing by the book. He had an architectural rendering prepared showing the center after "redevelopment," (how come all renderings for a proposed redevelopment look alike?) positioned all his "proposed" tenants on the leasing plan and did a rent roll. On paper, it was great. Fantastic tenant mix, all rated and national retailers and the rent roll was outstanding.

I was extremely impressed when he got done with his presentation. Here was a true professional; he almost had me convinced that the market was not as bad as I thought. If TJ Maxx, Office Max, Discovery Zone and Sports Authority were committed, I had to be wrong or these retailers were more desperate for locations than I had thought. I asked when the tenants were taking possession. He explained he wasn't sure, since he hadn't started contacting them yet. "Oh" I said. "Not being as bright or knowledgeable as you, why do you think they will be interested in your center, and why do you think they will pay that type of rent?" He replied that 1) they were not in the market, and therefore, would want to be, and 2) the rent was "fair" (God, do I hate that word). I tried to explain that MAYBE, just maybe, they were not in the market because they didn't want to be in the market (that never dawned on him, but for a leasing agent the expression "stupidity is blessed" can be true. They therefore go out and do what can't be done only because they don't know it can't be done). As far as rent was concerned, I asked about competing sites available that were at substantially lower asking rents and why the retailer would take his site over a competing cheaper location. He considered that irrelevant. "Don't confuse the issue with facts" was his motto.

On a different subject, I got a call at home the other day from a broker I'm trying to co-broker a deal with. He was frustrated and said he had been trying to reach me all night and no one was home. He wanted to know why I didn't have an answering machine. I explained we did, we just never bother to turn it on. "Why?" he asked in amazement. I said, if I turned it on and he left a message, I'd be obligated to return the call, this way I'm not. Now don't get me wrong, I believe in technology; we have an on-line service, we're part of the Internet, we maintain a referral "Home Page" on the WWW, we have a "Fax On Demand" for our commercial property for sale, we do "broadcast faxing" all the time and everyone in the company utilizes a computer and modem. We're probably more computerized than 75% of the companies in real estate today, but we don't have voice mail (and never will) and I think too many people are getting into "high tech" for high tech's sake and not to help make more deals or be more productive. The Governor of Connecticut just approved a regulation saying all state offices' phones have to be answered by a "real" human; I'd vote for him for President on this one issue alone, and while we also have an answering machine at our office (and sometimes use it) we don't call it voice mail as many people do, it's an answering machine ($39 at your local Staples or Office Max). Besides, people who use "voice mail" begin to hide behind it, they start to get more involved with dealing with the technology than doing deals or dealing with people, and don't ever forget, retail real estate is still a "people" oriented business. I enjoy computers, but I also accept that they can be dangerous to my business, marriage and family. It's a lot easier to say "I'll canvass by E-Mail, use broadcast faxing or mass mailings" than to actually pick up a phone and be rejected by a "real person" (or God forbid, really canvass by foot). One developer I was talking to was extremely frustrated. He had spent the weekend trying to "program" an appointment/phone directory mini computer about the size of a calculator he just bought. He originally thought it would make his life substantially more productive. It didn't, only more frustrated.

His "new toy" is limited in how much information he can input because of "memory" and the screen is next to impossible to read. I explained I use a yellow pad and pen and it works well. I recommended the same to him and no computer can provide the satisfaction of crossing out a project that was accomplished.

Apparel Tenants Looking for Sites

William Carter Co. trades as Carter's Childrenswear at 103 locations nationwide. The children's apparel stores occupy spaces of 5,000 sq.ft. in outlet centers. Preferred anchors include other manufacturers. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years are typical.

For more information, contact Lynn Mancini-Weiner, William Carter Co., 1000 Bridgeport Avenue, Shelton, CT 06484; 203-926-5000, Fax 925-0436.

CFTC Group, Inc. trades as Canadians, Pants Place, Scribbles, and AD3 at 105 locations in MA, NJ, NY, CT, RI, NH, PA, MD, VA, DE and GA. The apparel stores, offering clothes and shoes at moderate price points, occupy spaces of 3,000 sq.ft. to 10,000 sq.ft. in enclosed malls. Growth opportunities are sought in the existing markets.

For more information, contact Morri MacKenzie, CFTC Group, Inc., 116 Lehigh, Fairfield, NJ 07004; 201-808-1991, Fax 808-9316.

Figments, Inc. trades as Paradise and The Wave Surf Shop at nine locations in FL. The stores sell personalized, screen-printed sportswear and jewelry using spaces of 1,200 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in FL. The new stores will be called Earth Worm Society.

For more information, contact Roger Digby, Figments, Inc., 1113 Estero Street #2, Ft. Myers Beach, FL 33931; 813-463-4600.

Martin Process Company trades as Marpro Outlet at 12 locations in NJ, CT and NY. The apparel stores offer family clothing at off prices while using spaces of 10,000 sq.ft. in outlet, power and strip centers. The company is seeking growth opportunities in FL, NY, NJ, CT and PA. Leases running five to 10 years are typical.

For more information, contact Mitchell Riback, Martin Process Company, 10 Commerce Road, Fairfield, NJ 07004; 201-227-3440, Fax 227-9201.

Plus Co. trades as T-Shirts Plus at 120 locations nationwide. The apparel stores offer imprintable sportswear while using spaces of 800 sq.ft. to 2,500 sq.ft. in regional malls, outlet and power centers. Preferred anchors include Lord & Taylor. Plans call for up to 18 openings in the coming 18 months. Expansion will take place nationwide, excluding WA. Preferred demographics include a population of 200,000 within 50 miles earning $30,000 as the average income. Leases running 10 years are typical. The company is franchising.

For more information, contact Vickie Watt, Plus Co., 3630 I-35 South, Waco, TX 76702; 817-776-8872, Fax 776-6838.

Steinmart operates 80 locations in AL, AR, AZ, CO, FL, KS, KY, LA, MS, NC, OK, SC, TN, VA, GA, IN, TX and OH. The family apparel stores, selling better lines of clothing, occupy spaces of 36,000 sq.ft. in strip centers. Plans call for 15 to 18 openings per year. Expansion will take place nationwide. Preferred demographics include a population of 125,000 within five miles earning $45,000 as the average household income. Leases running 10 years are typical.

For more information, contact Mike Allen, Steinmart, 1200 River Place Boulevard, Jacksonville, FL 32207; 904-346-1500, Fax 398-4341.

Who's Opening and Where...

Dillard's Department Stores, Inc. (501-376-5200) plans to open a three-level, 250,000 sq.ft. store at North Point Mall in Alpharetta, GA. Construction on the store will start this spring. The mall is currently anchored by Sears, Rich's, J.C. Penney, Lord & Taylor and Mervyn's.

Borders Books and Music (408-934-0329) recently opened a store in Milpitas, CA. The company currently operates 81 stores nationwide.

Jiffy Lube (713-546-8538) plans to open 456 stores in Sears Auto Centers nationwide over the next three years. Jiffy Lube currently operates six locations at Sears Auto Centers in KY and NJ as part of a test begun last year.

Peebles Department Store (804-447-5200) plans to open seven stores during 1995 in Stafford, Appomattox and Wytheville, VA; Humbolt, TN; Marion, NC; Auburn, NY and Sylacauga, AL. Currently, the company operates 58 stores in markets from upstate NY, south to SC and west to TN and KY. Most stores are located in suburban communities near major metropolitan markets and range in size from 20,000 sq.ft. to 30,000 sq.ft.

Farmer Jack (313-270-1000) recently opened two supermarkets, one in Detroit and one in Troy, MI.

Volunteer Capital Corporation (615-244-1818) plans to open two J. Alexander's restaurants this year. One will be located in Overland Park, KS and the other will be located in Birmingham, AL. The company operates six other J. Alexander's restaurants, which feature an American menu, in Nashville and Franklin, TN; Dayton and Columbus, OH; Oak Brook, IL and Fort Lauderdale, FL.

Rhodes, Inc. (404-264-4600) plans to open 20 stores in the next two years. The furniture store chain plans to open stores in Kansas City, MO; Pittsburgh, PA; Indianapolis, IN; Cincinnati and Cleveland, OH and Marietta and Roswell Road, GA. The company currently operates 80 stores.

Office Depot (407-265-4258) plans to open a new concept store called Images in Fort Lauderdale, FL. The store will offer office copying, printing, shipping and sell office electronics to home users and small businesses.

CompUSA (214-383-4000) recently opened its second Seattle, WA store.

Po' Folks, Inc. (606-498-2200) plans to open a restaurant in Clearwater, FL this year. The company currently operates 97 family-style restaurants nationwide.

Dave & Buster's, Inc. (214-357-9588) plans to open two adult entertainment complexes, which feature games, a restaurant and bar, in the Chicago, IL area this year. The first is expected to open during August in Addison, IL and the second is expected to open during November in Chicago.

Mrs. Fields Cookies (801-649-1304) plans to triple its overseas presence in the next five years. The plans will create over 100 new franchises in the Middle East, Indonesia, the Philippines, Australia and Canada.

Barnes & Noble, Inc. (212-633-3311) recently opened bookstores in Downers Grove, IL and West Covina, CA.

Saks Fifth Avenue (212-940-5193) plans to open a 25,000 sq.ft. Off 5th-Saks Fifth Avenue Outlet store at Great Mall of The Bay Area in Milpitas, CA during August. The store also launches the new name of the Saks outlet concept, which currently operates eight outlet stores under the name Clearinghouse.

Sport-Haley, Inc. (303-320-8800) plans to open a 2,200 sq.ft. store in Laughlin, NV this fall. The company manufactures and markets golf and sportswear under the Haley label. The apparel is sold in affluent markets using 3,200 locations throughout North America.

T.G.I. Friday's (214-450-5400) through its Mexican franchisee Direccion Computo y Gerencia, S.A. de C.V., recently opened a 5,420 sq.ft., 350-seat restaurant in Mexico City. This marks the company's 42nd international restaurant in 16 countries.

J.C. Penney (214-431-1000) recently opened a store at Chapel Hills Mall in Colorado Springs, CO. The 68,000 sq.ft., two-level store will offer a full line of clothing and accessories, jewelry, shoes, luggage, bed and bath items, curtains and draperies, a styling salon and a catalogue department. The store will not carry housewares, furniture, gifts or greeting cards.

Virgin Music (805-564-4377) plans to open a 25,000 sq.ft. megastore at the former I. Magnin building in Seattle, WA next year. Virgin is expected to share the 80,000 sq.ft. building with two other tenants.

Battery One, Inc. (905-479-5683) plans to open stores in Union Station in Washington, D.C. and Orlando International Airport in FL as well as eight locations in upstate New York, eight locations in the Ohio Basin area, eight locations in the Chicago, IL area, eight locations in FL, six locations in the Seattle, WA-Portland, OR area, 10 locations in New York City, eight locations in the Boston, MA area, five locations in the Toronto, Ontario, Canada area, three locations in the Calgary, Alberta, Canada area and three locations in the Vancouver, British Columbia, Canada area. Battery One, Inc. is a publicly held company based in Rochester, NY. The company is a specialty retail chain emphasizing batteries and battery-related merchandise.

Starbucks (206-447-4285) plans to open 1,500 stores nationwide and internationally by the year 2000. Recently, the company opened a 5,000 sq.ft. store, it's largest, in Greenwich Village, New York City. The company currently operates over 530 specialty coffee stores and is opening new locations at the rate of one every weekday.

General Cinema (617-264-8000) plans to open a 16-screen, 3,400 seat movie theater in Seattle, WA. Construction is expected to begin April 1996 with a projected opening date of early 1998.

Walgreen Co. (708-440-2680) plans to open four stores in the Oklahoma City area by the end of the year and add another 16 by the year 2000. The company is also planning to open stores in Philadelphia, PA; Seattle-Tacoma, WA; Little Rock, AR; Chattanooga, TN; Richmond, VA and Corpus Christi, TX.

Giant Food, Inc. (301-341-8480) plans to open 18 stores of at least 60,000 sq.ft. in the next 18 months. Stores are planned for Fairfax County, VA; Woodbridge, VA; Cherry Hill, NJ; Brandywine, DE; Bowie, MD; Baltimore, MD; Manassas, VA; Washington, NJ; Mt. Laurel, NJ; Gloucester, NJ; Medford, NJ; Winslow Township, NJ; Hilltown, PA; Lower Makefield, PA; Lower Providence, PA; Warminster, PA and Wilmington, DE.

Merger & Acquisitions

Hollywood Entertainment Corp. (503-677-1600) acquired all outstanding shares of Title Wave Acquisition Corporation. The acquisition is the first step in Hollywood's plan to open and operate stores throughout the Midwest and in the Twin Cities area of MN. All Title Wave video stores were closed temporarily in order to convert them to Hollywood Video. They were reopened under the Hollywood Video name, offering movies and video games for rent, new and used video games for sale as well as accessories and confectionery items. The music departments of the Title Wave stores were eliminated.

Winn-Dixie Stores, Inc. (904-783-5409) has acquired 25 Thriftway stores in the greater Cincinnati, OH area. Winn-Dixie will continue to operate the stores as Thriftway Food and Drug stores. With this addition, Winn-Dixie now operates 1,183 supermarkets in 14 states and in the Bahamas.

APS Holdings Corporation (713-507-1100) executed a definitive agreement to purchase all operating and fixed assets of Linkon's Auto Supply Company. Linkon's, trading under the Parts Plus Program Group banner, operates 25 company-owned auto parts stores in IL, IN and MO as well a warehouse in IL and three wholesale only stores. APS Holding Corporation is a national distributor of Big A brand auto parts, tools, equipment, supplies and accessories. The company sells parts to more than 1,300 Big A associated stores and operates 200 company-owned stores. The company has 25 distribution centers and 165 Installers' Service Warehouse units.

Manhattan Bagel Company (908-544-0155) signed a letter of intent to acquire I&J Bagels, Inc. of Canoga Park, CA. I&J Bagels owns and licenses 16 bagel bakery stores in the Los Angeles area operating under the name I & Joy Bagels. Under the agreement, Manhattan Bagel Company will acquire all of the outstanding stock of I&J Bagels in exchange for shares of Manhattan Bagel common stock, not to exceed 1.5 million shares. The acquisition is Manhattan Bagel's first entry into the CA market. The company currently operates 75 franchised units in 11 Eastern states and has franchises under development in SC, TX and OH.

ACO, Inc. (810-615-2604) has entered into an agreement to acquire all of the outstanding common stock of NHD Stores, Inc. at $1.75 per share in cash. ACO, Inc. currently operates 65 hardware stores in MI. NHD Stores, Inc. operates 33 stores in MA, CT, RI and NH. The merger will create the nation's largest independent retail hardware chain.

PetsMart, Inc. (602-944-7070) entered into a definitive agreement to acquire all of the outstanding equity securities of Sporting Dog Specialties, Inc. and its affiliates for 1.25 million shares of PetsMart common stock. Sporting Dog is a worldwide catalog retailer, distributing four catalogs of pet and animal supplies and accessories. The company also operates five retail stores in upstate NY trading as Petwise. PetsMart also announced that federal antitrust agency review of its acquisition of Petstuff, Inc., for approximately $100 million, was successfully completed. PetsMart operates 182 superstores in 24 states.

Store Closings

F&M Distributors (313-758-1400), which filed for Chapter 11 bankruptcy protection in December, plans to close its PartiGiant division, sell the merchandise and lease its stores to Staples, Inc. The plan is pending approval of the bankruptcy court. F&M Distributors also operates a chain of 88 deep-discount drug stores.

Montaldo's (910-292-8592) plans to close its last three apparel stores in Greensboro and Charlotte, NC and in Richmond, VA. The 76-year-old company, which operated as many as 12 stores, has been operating under Chapter 11 bankruptcy protection. Fox Promotions has been chosen as liquidator of the stores' inventories.

HomeBase (714-442-5000) plans to close its store in South Sacramento, CA by the end of June. This marks the 17th HomeBase store to close since a repositioning plan was announced in 1993. The company currently operates 78 home improvement warehouse stores in the western US.

Financial News

Boston Chicken, Inc. (303-384-5652) announced it has made an investment in Progressive Bagel Concepts, Inc. (PBCI). PBCI was created through the combination of three bagel retailers: Brackman Brothers, Inc. of Salt Lake City, UT; Bagel & Bagel, Inc. of Kansas City, MO; and Offerdahl's Bagel Gourmet, Inc. of Fort Lauderdale, FL. Together, PBCI will own and operate 24 retail bagel stores with an additional seven stores under construction. Under the agreement, Boston Chicken, Inc. will provide a $20 million senior secured loan which is convertible into a minority interest in PBCI. The loan can be increased under certain conditions, which could eventually result in Boston Chicken having a majority equity interest in PBCI. Currently, Boston Chicken has no ownership in PBCI. Boston Chicken is also expected to provide administrative, real estate and systems support services to PBCI.

Ballard Computer (206-781-7000) recently filed for Chapter 11 bankruptcy protection and closed two stores. The company hopes to attract Canadian investors to help reorganize the company and bring it out of Chapter 11.

Cocina De Mino (405-632-1036) recently issued preferred stock to a private investor to help pay for future restaurant expansion. A public stock offering may occur next year. The company plans to open a 6,700 sq.ft. 170-seat restaurant in Olathe, KS, the OK company's first out-of-state location.

The Limited, Inc. (614-479-7070) plans to reconfigure the company by creating two new entities out of its existing operations. Each will be 85-90% owned by The Limited, Inc. with the rest owned by public shareholders. One entity may contain the lingerie and personal care businesses of the company: Victoria's Secret Stores, Victoria's Secret Catalogue, Bath & Body Works, Cacique, Penhaligon's and Gryphon. The second may contain the women's fashion apparel businesses: Express, Limited, Lerner New York and Lane Bryant. The company also plans to seek financial and marketing partners, continue to operate its other businesses, Abercrombie & Fitch Co., The Limited Too, Henri Bendel and Mast Industries, and distribute cash from investments to shareholders. The Limited, Inc., through its various tradenames, operates over 4,880 stores.

Pro Image, Inc., a wholly owned subsidiary of Rentrak Corporation (503-284-7581) announced that it does not expect to close its agreement to acquire the assets of Merle Harmon Enterprises and Fan Fair Development Corporation due to the Chapter 11 bankruptcy filing of Merle Harmon Enterprises. Fan Fair Development Corp. and Merle Harmon Enterprises franchise and operate 125 specialty fan shops. Pro Image franchises 200 retail outlets and operates 50 fan shops in the U.S., Canada, Mexico and Japan.

Showboat Casino Hotel in Atlantic City, NJ (609-343-4000) recently filed a law suit against Forest City Ratner Corp. (216-267-1000) and the Atlantic City Housing Authority to stop the construction of a mall, hotel and parking garage adjacent to the casino. The three were to jointly develop the 30-acre tract of land, but the casino company claims that the revised plan for the development bears no relation to the plan originally proposed. Showboat anticipated building a 284-room hotel on the site and providing Forest City a 69,000 sq.ft. tract of land for a parking garage that would be used for both the hotel and the mall. However, Forest City had difficulty obtaining the necessary financing and reduced the scope of its project. In its suit, Showboat officials claim they were never given a chance to see the revised plan and because Forest City violated the agreement, the parcel of land cannot be taken.

Kmart Corporation and Borders Group, Inc. (313-913-2333) filed a registration statement with the Securities and Exchange Commission for the proposed initial public offering of approximately 20.8 million common shares of Borders Group. Kmart currently owns 100% of the outstanding common stock. Borders Group trades as Borders, Inc. at 81 locations, Walden Book Company, Inc. at more than 1,000 locations, Planet Music, Inc. at five locations and as CD Superstores, which has five units under construction. Sales for the fiscal year ended January 22, 1995 for Borders Group were more than $1.50 billion. All of the net proceeds of the offering will be paid to Kmart, and upon completion of the offering, Kmart's ownership interest in Borders Group will be approximately 48%.

Lead Sheet

Bridgestone/Firestone, Inc.

dba Firestone, American Tire & Service

Tom Lesher

2550 W. Golf

Rolling Meadows, IL 60008

708-981-2377, Fax 981-2371

Automotive

The 1500-unit chain operates locations nationwide. The automotive service centers occupy spaces of 6,600 sq.ft. in end-caps and freestanding facilities. Growth opportunities are sought nationwide.

The Everest Group

John Thompson

8260 Northcreek Drive/ Ste. 220

Cincinnati, OH 45236

513-985-4105, Fax 985-4112

Bedding

The Everest Group represents a mattress manufacturer who plans to open stores and a manufacturing facility in the Cincinnati, OH market. The company is currently seeking two 4,000 sq.ft. to 7,000 sq.ft. retail locations in the Tri County and Florence areas. The stores sell bedding under the King Koil brand name and will manufacture mattress sets locally to customer specifications including custom sizes.

Half Price Books, Records, Magazines, Inc.

dba Half Price Books

Robert Schirmer

5915 East Northwest Highway

Dallas, TX 75231

214-360-0833, Fax 360-0187

Books

The 51-unit chain operates locations in TX, OH, IN, WI, MN, WA and CA. The stores sell new and used books, records, tapes and compact discs while using spaces of 6,000 sq.ft. in strip centers. Preferred anchors include Blockbuster Video, movie theaters, restaurants and supermarkets. Plans call for eight openings in the coming 18 months. Expansion will take place along the Eastern Seaboard. Preferred demographics include a population of 120,000 within three miles earning $50,000 as the average income. Leases running five years are typical.

Read All About It

Kim Hubner

4657 G Street

Omaha, NE 68117

402-734-3333, Fax 731-0516

Books

The 10-unit chain operates locations in NE and IA. The book stores occupy spaces of 1,800 sq.ft. to 3,000 sq.ft. in enclosed malls. Growth opportunities are sought in the existing markets.

Sportsworld U.S.A., LTD.

Arthur Bressman

c/o Shopping Center Strategy

6 Gus Siko Road

Poughkeepsie, NY 12601

914-878-8810, Fax 878-8791

Entertainment

The six-unit chain operates locations in MD, PA, CT and NY. The entertainment concept uses spaces of 25,000 sq.ft. to 30,000 sq.ft. in regional malls, power and strip centers. Preferred anchors include multi-screen theaters. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 250,000 within five miles earning $40,000 as the average income. Leases running 15 years are typical. The company is franchising.

Fabric & Textile Warehouse

dba World of Fabrics

William Hogan

West Highway 12

Willmar, MN 56201

612-235-0985, Fax 235-0991

Fabrics

The six-unit chain operates locations in MN, SD, IA and ND. The fabric and home decor stores occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in strip centers and freestanding facilities. Preferred anchors include supermarkets. Plans call for up to two openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 100,000 within 10 miles earning $38,000 as the average income. Leases running five years with options are typical.

General Industries

dba Rugs & Home Accessories

Mr. Itzshak

PO Box 10866

Costa Mesa, CA 92627

714-557-0402

Furniture

The six-unit chain operates locations in CA. The stores, offering rugs and furniture from around the world, use spaces of 10,000 sq.ft. in strip centers. Growth opportunities are sought in the existing market.

Storables

Dodd Fischer

3250 N.W. Yeon

Portland, OR 97210

503-227-2432, Fax 227-4403

Housewares

The eight-unit chain operates locations in OR and WA. The housewares stores occupy spaces of 3,500 sq.ft. in strip centers, community centers and freestanding facilities. Plans call for at least one opening in the coming 18 months. Expansion will take place in Portland, OR and the company is seeking additional sites in OR and WA.

The S. Galeski Optical Co.

dba Galeski Optical

Karl Weinsenburg

8229 Hermitage Rd.

Richmond, VA 23228

804-553-1462, Fax 553-1466

Optical

The 17-unit chain operates locations in NC and VA. The stores occupy spaces of 1,200 sq.ft. in enclosed malls and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in VA. Leases running 10 years are typical.

Sign Biz, Inc.

dba Sign Biz

Sherry Suffens

10 Corporate Park/ Ste. 130

Irvine, CA 92718

714-263-0400, Fax 263-1555

Specialty

The 101-unit chain operates locations nationwide. The instant sign stores occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in regional malls, strip and specialty centers. Preferred anchors include Kinko's, Office Depot and restaurants. Plans call for 36 openings in the coming 18 months. Expansion will take place world-wide. Leases running three years are typical.

Hibbett Sporting Goods, Inc.

dba Hibbett Sporting Goods

Steve Kowal

131 S. 25 Street

Irondale, AL 35210

205-956-0036, Fax 956-0164

Sporting Goods

The 61-unit chain operates locations in AL, GA, MS, TN, FL, IL, KY, SC and LA. Selling a full line of sporting goods, the stores occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in enclosed malls. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical.

Lease SigningsHiffman Shaffer Associates (312-332-3555) recently leased space at six properties in Chicago, IL. Companies signing leases included J. Baker (Parade of Shoes) leasing 3,250 sq.ft.; Bread with Appeal leasing 2,500 sq.ft.; Torrefazione Italia leasing 1,670 sq.ft.; Rausch Rehabilitation Services, Inc. leasing 1,765 sq.ft.; Quizno's leasing 1,550 sq.ft. and Breadsmith, Inc. leasing 1,280 sq.ft.

Judson Realty, Inc. (212-974-1900) leased 2,600 sq.ft. to Stuart Weitzman at 625 Madison Avenue, the former Paolo Gucci space, in New York City. Stuart Weitzman shoes are carried at Saks Fifth Avenue and at better department stores throughout the United States and Europe.

MJB Real Estate Service Corp. (203-222-6200) recently brokered three leases for a total of 15,000 sq.ft. at Century Plaza in Monroe, CT. The new tenants include a pet supply store, a TV and video store and a drycleaners. The leases run 10 years with a 10-year option. Century Plaza is an 84,000 sq.ft. project that is anchored by Big Y Supermarket and CVS Pharmacy. MJB is the exclusive broker of the site with 7,000 sq.ft. remaining to lease.

Realco Group, Inc. (516-294-7070) brokered a deal with E&B Marine leasing 12,000 sq.ft. of space on Long Island. E&B Marine operates 54 stores nationwide.

Gold & Company, Inc./New America Network (412-471-4455) leased 3,794 sq.ft. to Joanne Stout Shops at Loehamnn's Plaza in Monroeville, PA. Joanne Stout Shops currently has three store locations in the Pittsburgh, PA area and is relocating its Monroeville location from the Miracle Mile Shopping Center to Loehmann's Plaza.

The Sansone Group, Inc. (314-822-9009) recently leased the following spaces: 1,400 sq.ft. to Castelli Tuxedo Rental and Sales at Mid Rivers Center in St. Peters, MO; 1,050 sq.ft. to Only Nails and 1,400 sq.ft. to D&K Hockey Pro Shop in Mid-Rivers Plaza in St. Peters, MO; 6,438 sq.ft. to Prestige Portraits at Barrett Station in St. Louis County, MO; 1,600 sq.ft. to China Moon in Dierbergs Clocktower in St. Louis County, MO; and 1,400 sq.ft. to Hi Tech Hair Designs at Olympic Oaks in St. Louis County, MO.

Divaris Real Estate, Inc. (804-497-2113) leased two spaces to Hills Department Store. The first lease is for 103,000 sq.ft. in the former HQ store in Virginia Beach, VA. The store will be remodeled by Hills and is expected to open during the summer. The second lease is for 88,000 sq.ft. in the former Builder's Square store at Riverdale Plaza Shopping Center in Hampton, VA. The store is expected to open during the fall. The company also leased space to Tidewater Health Services Corp. in Virginia Beach, VA and 1,000 sq.ft. to Paradise Sun at Shady Banks Shopping Center in York County, VA.

Correction

In the March 17, 1995 issue of The Dealmakers the expansion plans for Frayne Fashions, located in FL, was incorrectly reported as 10. The correct number of stores planned to be opened in the coming 12 months is two.

For more information, contact Rebecca Frayne Morton, Frayne Fashions, 6402 West Linebaugh Avenue, Tampa, FL 33625; 813-961-7171, Fax 264-7928.

Space Place

Florida

Tampa- Eastgate Shopping Center is anchored by Walgreens, Western Auto, Woolworth's and Big Lots. The 108,000 sq.ft. project has spaces of 1,500 sq.ft. and 2,000 sq.ft. available for lease. The site fronts 22nd Street and Hillsborough. Demographics include a three-mile population of 115,000 earning $25,000 as the average income.

For details, contact Joe Savaro of Brahin Properties at (215-563-7222), Fax (563-2449).

Kentucky

Versailles- Versailles Center is anchored by Big Valu Food Store and Rite Aid Drug Store. The 114,000 sq.ft. project has spaces of 1,742 sq.ft. and 1,942 sq.ft. available for lease. The site fronts US 60 which has a daily traffic count of 23,000 cars. Demographics include a five-mile population of 16,802 earning $44,463 as the average income.

For details, contact C.M.I. Properties at (606-273-7389), Fax (272-2648).

New Jersey

Brooklawn- Brooklawn Shopping Center is anchored by Kmart and Fleming Foods. The 144,000 sq.ft. project has spaces of 1,600 sq.ft., 5,000 sq.ft. and 6,600 sq.ft. available for lease. The site fronts Rt. 130 and Browning Road. Demographics include a three-mile population of 90,136 earning $34,470 as the average income and a five-mile population of 376,236 earning $31,392 as the average income.

For details, contact Gloria Mercado of Brahin Properties at (215-563-7222), Fax (563-2449).

New York

Port Chester- Post Road Plaza is anchored by Jack LaLanne Health & Racquet Club. The project has a space of 12,500 sq.ft. available for lease. The site fronts Boston Post Road (US 1). Demographics include a five-mile population of 133,000 with an average household income of $100,567.

For details, contact Mark Hirsch of Simone Development Company at (914-576-5000), Fax (576-4000)

Tennessee

Kingsport- Kings-Giant Shopping Center is anchored by Food Lion and Revco. The 159,000 sq.ft. project has spaces of 4,200 sq.ft. and 65,000 sq.ft. as well as a 39,000 sq.ft. pad site available for lease. Demographics include a five-mile population of 71,000 earning $31,000 as the average income. The site fronts East Stone Drive off Interstate 23.

For details, contact Elizabeth Nichols of New Plan Realty Trust at (615-744-0124), Fax (744-9278).

Nashville- Bell Forge is anchored by Kroger. The 144,000 sq.ft. project has spaces of 1,600 sq.ft. and 2,400 sq.ft. available for lease. The site is adjacent to Hickory Hollow Mall. Also in Nashville, South Plaza is anchored by Wal*Mart and Uptons. A 25,000 sq.ft. space is available for lease. The site fronts Old Hickory Boulevard and Nolansville Road.

For details, contact Allen C. McDonald of C. D. Storey Properties at (615-782-8764), Fax (244-3291).

Texas

Pasadena- Fairmont Village Center is a 24,000 sq.ft. strip center to be developed this summer. Spaces are available for lease. Area retailers include Kmart, Builders Square, Home Depot, Wal*Mart and Pep Boys. The site fronts Beltway 8 which generates a daily traffic count of 33,000 cars. Demographics include a three-mile population of 80,000 earning $48,250 as the average income and a five-mile population of 220,000 earning $47,425 as the average income.

For details, contact Brent Fredericks of HPI at (713-623-6944), Fax (963-9329).

Virginia

Woodbridge- Station Plaza is anchored by Kmart, Food Lion, Blockbuster Video and Pic-N-Pay. The 175,000 sq.ft. strip center has spaces of 800 sq.ft., 1,438 sq.ft. and 1,775 sq.ft. available for lease. The site fronts Route 1 and Route 123/95 which have a daily traffic count of 64,500 cars. Demographics include a three-mile population of 43,500 earning $57,500 as the average household income and a five-mile population of 125,000 earning $61,100 as the average household income.

For details, contact Alex Arancio of Lamar Companies at (410-544-0310), Fax (544-3127).

Exclusives: Leasing and Management Assignments

Montgomery Group Affiliates (610-825-7100) has been named the exclusive leasing and managing agent of Suburban Square, a 110,000 sq.ft. retail and office complex in Ewing Township, NJ, owned by Suburban Square Associates. The two-story complex includes SuperFresh Supermarket and McCrory variety store with 32,000 sq.ft. of small store space between the anchors. The second level has 27,000 sq.ft. of office suites.

Triad Real Estate Group, Inc. (305-448-2500) has been named the exclusive leasing agent for Biga Bakery Corporation, a Miami Beach, FL company known for its wide selection of quality baked products. Triad is seeking upscale retail locations in the Weston, Las Olas and Coral Springs areas of Broward County, FL and in East Boca Raton, Coral Gables and Aventura areas in Dade County, FL.

Mertz Corporation (609-234-9600) has been appointed the exclusive leasing agent for a 5,700 sq.ft. retail site on Haddonfield Road in Pennsauken, NJ. The site is located one mile from the Cherry Hill Mall. The company was appointed exclusive leasing agent for the 56,000 sq.ft. of retail stores to be developed at Goods Plaza in Voorhees, NJ. Spaces from 2,080 sq.ft. and up will be available. The company was also appointed exclusive leasing agent for a 17,400 sq.ft. retail building and a 15,000 sq.ft. retail building, both in Cherry Hill, NJ.

The Breder Companies (305-251-1520) has been appointed the exclusive management and leasing agent for Bailiwick Mall in Cocoa Beach, FL. The 25,000 sq.ft. project is anchored by Tally's Packing and Shipping Company, Needlecraft Junction, Vacuum World, Dreamweaver Coffee House and The Art Shop.