Issue 19 for the week of June 2, 1995

The Dealmakers Issue Number 19 for the week of June 2, 1995.

My Way by Ted Kraus

I should have my mouth washed out with soap for what I'm about to say (but I really, really don't mean it); "The ICSC Convention was too crowded." There were times during the first two days of the show we couldn't handle the crowds in our booth and potential "deals" walked out frustrated because we couldn't get to 'em (I'm always paranoid that it's the really big deal that walks out and is lost forever) and everyone manning our booth was unhappy with being so cramped together (of course the fact that everyone visiting our booth was talking "deals" made up for it).

Even Thursday, which is usually "Death Valley Day" was active 'til 4 p.m. Considering that we're usually packing up by noon, this was great. I was told by the ICSC that attendance was up 22% and I could easily be convinced to believe an even higher number. The show itself went as smooth as you could ask for and I did not hear one negative comment about the event itself. Summing it up, it was great.

All that being said, let me tell you about some interesting conversations and observations I had. I was talking to one friend who is the real estate rep for a retail chain. I asked how business was and was told "horrible." I replied: "Well, at least you won't have to work too hard doing deals." He replied, "WRONG, they want 80 new stores in the next 12 months." I asked why his company was expanding if they aren't making money and was told they need the cash flow (profit is no longer an important word). He felt that as long as the check cleared on Friday, he'd stay around, but he was not optimistic on the company's future. Another friend told me he was conducting interviews for a leasing job his company had available and that he had interviewed three real estate reps who were working for a "big box" user that had been under rapid expansion for the last three years. Now expansion appears to be on "hold," but the company hasn't told the industry yet, they keep saying, "yes, we're expanding" (they just forget to mention they won't have a real estate department). He wants to sell their stock short. (Is that considered insider's trading?). An anchor apparel tenant I spoke to said that this past winter was the worst in his company's history (of course, most apparel retailers expressed the same sentiments, so he's not alone). The overall attitude of the attendees appeared to be that of "guarded pessimism" about the near future, but today everything is fine.

Rene Daniel of The Daniel Group expressed it best: "The new people to our industry walked around the show saying, "Look at all these people doing deals." The experienced professional walked around saying, "Look at all of these people TALKING about doing deals." Well, at least they're willing to talk...

Now don't get me wrong, I'm not trying to be a prophet of doom and gloom as some people have accused me of being, but I think that there are too many high paid executives in our industry that didn't notice Bush lost the election and more importantly, why. His "What recession?" and "$200,000 a year is middle class" statements were among the major cause of his downfall. They, like him, are totally out of touch with reality. We (the industry) just had a GREAT show, but that doesn't reflect the current state of the industry but reflects the health of the economy six months ago when plans on attending and exhibiting were being made. Most of us have made enough money in the last year that we almost felt compelled to attend and some even spent more money on exhibiting than they have in years (we put a new paint job on our lemonade stand). The world is not coming to an end but everything is not coming up roses either. What I found humorous was an interview on ICSC's TV show that ran in the hotel rooms. A statement was made that some of the "media" was guilty of sensationalism both in reporting poor retail sales and the extent of crime in shopping centers. Now I realize that comment was not directed towards us, since all the poor retail sales we reported were for public companies and based on their numbers, not ours, nor have we ever discussed crime and safety in shopping centers, but those statements made no sense, so I feel compelled to comment. First, the "media" has been more than kind to our industry when it comes to the issue of safety. Sure there are occasional reports of rapes or robberies in a center, but overall we get good press. I think the public, as a whole, is more concerned about their personal safety when they enter a post office or federal building than a shopping center. Yes, the industry should be and is concerned about both safety and the public's perception of safety in a center. Most responsible owners are taking more precautions than ever to ensure the consumers' safety, BUT I don't think we have to be paranoid about the media giving us a bad rap. I also do not believe that "some" of the media is overblowing the weakness in retail sales (auto sales are at recession level numbers by the way). Now all of the above is based on my "gut" which their spokesmen said was an unscientific and totally unreliable way for the media to behave but I've learned over the last 50 years that 1) my "gut" (besides being too big) is usually right, and 2) more reliable and accurate than a self serving survey that costs hundreds of thousands of dollars and always obtains "results" the person who commissioned it wanted.

Common sense, in my humble opinion, is more reliable than most "research." I didn't need the government to tell me we were in a recession five years ago, and I do not need a survey to tell me the economy and retailing are struggling right now. The show was good, deals will be made because of it and everyone went home happy. I'm just saying be careful. We had some companies drop by our booth showing the same vacancies they had two to four years ago. The bad/mediocre problems are not going away.

Now onto my favorite topic, the wonderful world of being On-Line. There were three or four companies exhibiting at the trade show various on-line services in addition to the ICSC introducing its on-line service. The good news is they all have seen the future; the bad news is (again in my humble opinion) they are premature. First, it seems most real estate people are computer illiterates and second, at this point in time, there are more FREE real estate oriented services available on the Internet providing more information than the paid services have. In time, that will change, but for now all these services will struggle. Besides our three forums, on-line board and Home Pages on the Internet, there are 10 other forums and hundreds of Home Pages that I'm familiar with. Add AOL, Prodigy and CompuServe and a real estate person could spend their life on line.

While I think it makes sense for everyone to get "on-line", I don't know if the paid services can justify their cost (If I thought we could get away with it, we'd charge also, so don't think I'm opposed to charging, I'm not). I've received dozens of calls from friends asking if they should subscribe/join these services. Based on what I've heard so far, the answer is NO. Walk the Internet before you run.

Sporting Goods Tenants Hunt for Sites

Sternheimer Brothers, Inc. trades as A&N Stores at 48 locations in VA. The sporting goods stores occupy spaces of 3,600 sq.ft. to 18,000 sq.ft. in regional malls, strip centers and freestanding facilities. Growth opportunities are sought in the existing market.

For more information, contact Ross Sternheimer, Sternheimer Brothers, Inc., 5501 Ferncroft Road, Sandston, VA 23150; 804-226-1324, Fax 222-4894.

Busy Body, Inc. trades as Busy Body at 31 locations in CA, TX and GA. The sporting good and fitness equipment stores occupy spaces of 4,500 sq.ft. in power and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Stewart Tinsley, Busy Body, Inc., 4540 Beltway Drive, Dallas, TX 75244; 214-960-9212, Fax 960-7577.

The Sports Authority operates 110 locations in 22 states and Ontario, Canada. The stores occupy spaces of 43,000 sq.ft. in power centers and freestanding facilities. Plans call for 50 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Mark Walker, The Sports Authority, 3383 N. State Road/ Suite 7, Fort Lauderdale, FL 33319; 305-735-1710, Ext. 4276, Fax 305-730-4288.

Oshman's Sporting Goods, Inc. trades as Oshman's and Super Sports USA at 200 locations nationwide. The stores occupy spaces of 50,000 sq.ft. to 85,000 sq.ft. in regional malls and power centers. Preferred anchors include entertainment and big-box tenants. Plans call for 15 openings in the coming 18 months. Expansion will take place in CA, WA, OR, AZ and NV. Preferred demographics include a population of 300,000 within five miles earning $50,000 as the average income. Leases running 20 years are typical.

For more information, contact Martin Moskowitz, Oshman's Sporting Goods, Inc., 31320 Via Colinas #102, Westlake Village, CA 91362; 818-865-2425, Fax 865-8934.

Pro Golf operates 170 locations nationwide. The stores, specializing in golfing equipment and apparel, occupy spaces of 4,000 sq.ft. to 10,000 sq.ft. in strip centers and freestanding facilities. Plans call for up to 24 openings in the coming 18 months. Expansion will take place nationwide. Leases running two to five years are typical.

For more information, contact Steve Gossard, Pro Golf, 32751 Middlebelt Road, Farmington Hills, MI 48334-1726; 1-800-521-6388, Fax 313-737-9077.

Eastern Mountain Sports operates 57 locations in the Northeast, CO and MN. The stores occupy spaces of 5,000 sq.ft. to 5,500 sq.ft. in regional malls, power and strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in MI, OH and CO. Preferred demographics include a population of 300,000 within 10 miles earning $50,000 as the average income.

For more information, contact John Neppl, Eastern Mountain Sports, One Vose Farm Road, Petersborough, NH 03458; 603-924-9571, Fax 924-9138.

New Construction

New England Development recently broke ground on the one million sq.ft. Solomon Pond Road Mall which is located at the Solomon Pond interchange of Route 290 on the border of Marlborough and Berlin, MA. The project will be anchored by a 180,000 sq.ft. Filene's, a 180,000 sq.ft. Jordan-Marsh, a 151,000 sq.ft. Sears and a 127,500 sq.ft. JC Penney. An additional 130 stores will be located at the site. The mall is expected to open during August 1996.

For more information, contact Bill Cronin of New England Development at (617-243-7000).

James Murray, a Hawaiian residential developer, is currently building the 75,000 sq.ft. Oasis Plaza in Eugene, OR. The project will be anchored by a 31,250 sq.ft. BiMart and a 22,500 sq.ft. Oasis Fine Foods Marketplace. These two buildings are expected to be completed in July. Construction on the 13,200 sq.ft. retail portion of the project is expected to begin during summer and approximately 7,000 sq.ft. remains to be leased. Rainbow Optics, Subway, Pizza Pete's, a beauty salon and a dry cleaners have all reserved space at the center.

For more information, contact Maria Duncan of Coldwell Banker Curtis Irving Realty, Inc., leasing agent of the project, at (503-484-9815).

Fru-Con Development Corp. and Prime Retail are currently developing phase one of Arizona Factory Shops in New River, AZ. The 217,000 sq.ft. project will be anchored by Ann Taylor, Adolfo, Jones New York, Van Heusen, Bugle Boy, Levi's and Black & Decker. The project is expected to open later this year. Leasing has begun for phase two of the project, with ground expected to broken on the 91,000 sq.ft. expansion during late summer. Currently, plans show that ground will be broken on the 110,000 sq.ft. phase three addition during summer 1996. When all three phases are completed, the project will contain more than 100 stores in a GLA of 418,000 sq.ft.

For more information, contact Richard Maloof of Fru-Con Development Corp. at (314-391-4501).

Mergers & Acquisitions

Tandycrafts, Inc. (817-551-9603) recently acquired Christian Outlet, a 12,000 sq.ft. Christian bookstore in Phoenix, AZ. The store will become a part of Tandycrafts' Joshua's Christian Stores chain. Joshua Christian Stores operates 71 locations in TX, CA, CO, AL, GA, FL, KY, SC, NM and TN.

Good Times Restaurants, Inc. (303-427-4421) recently sold its 15 Round The Corner (RTC) restaurants to a group that included the current management team of RTC. Closing of the agreement is expected this month. Good Times Restaurants, Inc. will continue to own and operate its 22 Good Times Drive Thru units.

Clucker's Wood Roasted Chicken, Inc. (305-899-2585), a developer of Kenny Rogers Roasters, recently purchased two Roasters restaurants in FL for $800,000.

Video Update, Inc. (612-222-0006) recently signed a letter of intent to acquire Wilderness Video Group Ltd. Wilderness Video operates 51 video stores in western Canada. Video Update operates 55 video stores in the Midwest, East Coast and WA.

Cineplex Odeon Corp. (416-323-6634) and Cinemark USA, Inc. (214-696-1644) agreed to delay their proposed merger until a later date. A letter of intent to merge expired May 31, and a decision on when merger negotiations will resumed was expected to be made before that date. Cineplex Odeon, based in Toronto, Ontario, Canada, has 1,618 screens in six Canadian provinces and 14 US states. Cinemark USA, Inc., headquartered in Dallas, TX, operates 1,234 screens in 29 US states, Canada, Mexico and Chile.

Blockbuster Entertainment (305-832-3320) recently acquired the 17-store chain 16,000 Movies of Orlando, FL. Blockbuster plans to run the stores under the 16,000 Movies name.

Hartmax Corp. (404-449-5877) plans to sell its Kuppenheimer Men's Clothiers chain to Kupp Acquisition Corp. for approximately $16.5 million. The group plans to add name brands to the 91 store chain's inventory.

Financial News

McCrory Corp. (717-757-8992) reported that its 1994 sales were down 17.3% and that the company posted a loss of $121.9 million.

Weiner's Stores, Inc. (713-688-1331) recently finalized an agreement with CIT Group/Business Credit, Inc. for a $30 million line of credit. The funds will help finance business operations and inventory purchases while the company develops a plan of reorganization. The company operates 158 stores in TX and LA.

Gap, Inc. (415-952-4400) reported a 13% increase in sales for the first quarter of 1995 compared to the first quarter of 1994. Sales for 1995 were reported at $849 million compared to $751 million for the same period in 1994. The company currently operates 1,535 stores.

Ross Stores, Inc. (510-790-4400) reported a 13% increase in sales for the first quarter of 1995 compared to the first quarter of 1994. Sales for 1995 were reported at $297 million compared to $264 million for the same period in 1994. The company currently operates 278 stores.

Gantos, Inc. (616-949-7000) reported that net sales for the first quarter of 1995 were the same, $49.1 million, as the first quarter of 1994. The company currently operates 113 stores in 23 states.

Eckerd Corporation (813-399-6380) reported a 10% increase in sales for the first quarter of 1995 compared to the first quarter of 1994. Sales rose to a record $1.219 billion during the quarter. The company currently operates 1,739 drug stores in 13 states and 489 Express Photo Labs in nine states.

Discovery Zone, Inc. (312-616-3800) reported that earnings for the first quarter of 1995 were $3.602 million compared to a loss of $3.295 million for the first quarter of 1994. First quarter 1995 revenues were reported at $81.9 million, up 122% from revenues of $36.9 million during the first quarter of 1994. The company currently operates 336 locations in 44 states, Canada, Puerto Rico, the United Kingdom, Mexico and Spain.

Tuesday Morning Corp. (214-387-3562) reported that sales increased 17.2% for the first quarter of 1995 compared to results from the first quarter of 1994. However, the company also reported a net loss of $2 million for the first quarter of 1995 compared to a loss of $2.3 million for the first quarter of 1994.

Rose's Stores (919-430-2830) recently completed its reorganization and has emerged from Chapter 11 bankruptcy.

Blockbuster Entertainment Group (305-832-3320) recently granted development right to Sun-Master Entertainment Ltd. for the development of 105 Blockbuster Video stores in Thailand. The deal marks the 20th international market for the company.

Perkins Family Restaurants (901-766-6400) reported that revenues for the first quarter of 1995 increased 12% to $56.913 million compared to the first quarter of 1994. However, net income for the first quarter of 1995 was down slightly to $2.2 million from $2.611 million in 1994. The company currently operates 137 restaurants and franchises an additional 305 restaurants in 32 states and Canada.

Wendy's International (614-764-3553) reported that net income for the first quarter of 1995 was $15.8 million up from $12.5 million for the first quarter of 1994. Revenues for the first quarter were reported at $346 million, up from $320 million for the same period last year. The company also reported that first quarter sales topped $1 billion, up 10% over 1994's sales of $967 million. The company currently operates 4,454 restaurants nationwide and in 33 countries.

Ground Round Restaurants, Inc. (617-380-3100) reported a second quarter 1995 loss of $1.3 million. During the second quarter in 1994 the company posted earnings of $1.6 million. Revenues for the second quarter of 1995 fell to $56.9 million from $59.9 million during the same period last year. The company currently operates 157 restaurants and franchises another 44 units.

The May Department Store Company (314-342-6300) reported that net earnings in the first quarter of 1995 increased 2.4% to $114 million, compared to $112 million during the first quarter of 1994. Sales in the first quarter of 1995 increased 6.8% to $2.70 billion, compared to $.253 billion in the first quarter of 1994. The company also reported that during the first quarter it opened a Lord & Taylor store at Woodfield Mall in Schaumburg, IL, a Foley's store at Temple Mall in Temple, TX, 134 Payless ShoeSource stores and 68 Payless Kids stores. For the balance of 1995 the company is planning to open three Lord & Taylor stores, seven Kaufmann's stores, four Hecht's stores, four Filene's stores, one Foley's, one Robinson-May, one Famous-Barr, 125 Payless ShoeSource stores and 38 Payless Kids stores. The company currently operates 315 department stores and 4,569 Payless ShoeSource stores.

50-Off Stores, Inc. (210-805-9300) reported that first quarter sales in 1995 fell 1.7% to $44.8 million compared to $45.6 million in the first quarter of 1994, and first quarter 1995 comparable store net sales fell 3.9% from 1994 results. However, when the company's 13 stores located near the US-Mexico border, which have been adversely affected by the decrease in the value of the Mexican Peso, are factored out, the company recorded a comparable stores net sales gain of 3.3% for the first quarter of 1995 over 1994's first quarter results.

Mercantile Stores (513-881-8000) reported that first quarter 1995 earnings increased 26% over 1994's first quarter results.

Dillard Department Stores (501-376-5200) reported that sales for the first quarter of 1995 increased 3.2% over 1994's results, but that its earnings remained the same.

Trader Horn (201-288-3400), which filed for Chapter 11 last year in an attempt to remain open, has instead decided to shut its doors. The company, which closed ten stores at the beginning of the year, has sold its inventory to liquidator Nassi-Bernstein which is running going out of business sales at the six remaining stores in NJ and NY.

The Limited, Inc. (614-479-7000) reported that net sales for the first quarter of 1995 rose seven percent to $1.588 billion, compared to $1.482 billion during the first quarter of 1994. The company currently operates 4,954 stores under the tradenames Express, Lerner New York, Lane Bryant, Limited Stores, Henri Bendel, Victoria's Secret, Cacique, Structure, Abercrombie & Fitch, Bath & Body Works, Penhaligon's and Limited Too. The company also sells apparel through Victoria's Secret Catalogue.

Claire's Stores, Inc. (305-433-3900) reported that sales for its first quarter in fiscal year 1996, ended April 29, were seven percent higher than last year. Sales were reported at $68.078 million, up from $63.656 million. The company currently operates 1,234 stores in 48 states, the Caribbean, Canada and Japan.

OfficeMax, Inc. (216-295-6411) reported that first quarter 1995 net income increased 88.6% to $8.026 million, compared to $4.255 million in 1994. The company also reported that first quarter sales rose 32.7% to $557.873 million from $420.325 million. The company, which operates 400 office products superstores, plans to 80 new superstores, 10 delivery centers, 20 FurnitureMax stores and as many as 10 CopyMax stores. The latter two are its newest concept stores.

Who's Opening and Where...

Wal*Mart (501-273-4000) plans to open a 178,425 sq.ft. Wal*Mart Super Store in Paragould, AR during February 1996.

Kmart (810-643-1000) plans to open a 135,000 sq.ft. Super Kmart store during the first half of 1996 at Morgantown Commons in Morgantown, WV.

Candleman (218-829-0592) recently opened a store, offering high quality rare and unusual candles and candle accessories, at Westroads Mall in Omaha, NE.

Publix Supermarkets (813-688-1188) plans to open a 27,000 sq.ft. supermarket in Miami, FL next year.

Dancer's (517-676-4474) recently opened a store in Rockford, MI and is planning to open a store in Fremont, MI during August. The company operates 30 family apparel stores in MI and IN.

Spiegel (708-986-8800) recently opened a Spiegel Clearance Center at Horizon Outlet Center-Holland in Holland, MI.

Office 1 Superstore (708-616-8686) recently opened a 12,000 sq.ft. store at Dunes Plaza in Michigan City, IN.

E&B Marine (908-819-7400) opened four superstores averaging 12,000 sq.ft. last year and is looking to open five more stores this year in GA, SC and the Midwest. An additional 10 openings are projected for both 1996 and 1997. The company operates 56 stores specializing in boating supplies.

TJ Maxx (508-390-3000) recently opened a 26,000 sq.ft. store at Wiegand Plaza II in Encintas, CA.

AMC Theaters (816-221-4000) plans to open a 102,000 sq.ft., 25-screen, 5,500 seat multiplex in Arcadia, CA during 1997. The company currently operates 234 theaters nationwide.

Arby's (305-351-5100) recently opened its largest restaurant in Tulsa, OK. The restaurant is 3,000 sq.ft. and seats 144. The average Arby's is under 2,000 sq.ft. and only seats 75.

Boscov's (215-779-2000) plans to open a two-level, 185,000 sq.ft. department store at the Neshaminy Mall in Bensalem, PA during November.

Boston Chicken, Inc. (708-955-6100), through its Texas franchisee, BC Texas, Inc., plans to open 55 Boston Market restaurants in the Dallas, TX area by the end of 1997 and 40 restaurants in the Houston, TX area by the end of 1998. Currently, BC Texas operates 34 Boston Chicken/Market restaurants in TX.

Kroger (513-762-4214) recently opened a supermarket at Russell Ridge Shopping Center in Atlanta, GA. The company is also relocating its Lexington, KY store from Lakeview Plaza to a 71,000 sq.ft. space at Man o' War Place Shopping Center.

Tedeschi Food Shops (617-878-8210) plans to open a convenience store in MA this year. The company currently operates 68 stores in MA and RI.

Sun Television & Appliances, Inc. (614-445-5394) is relocating its Columbus, OH store to a 50,100 sq.ft. facility at Sun Super Savings Center also in Columbus, OH. The move will take place this month.

Hearth & Kettle Restaurant (508-771-0040) plans to open a restaurant in MA this year. The company currently operates seven locations in MA.

Danielson Food Stores (503-655-9141), trading as Danielson Thriftway, plans to open a supermarket in OR this year. The company currently operates eight supermarkets in OR.

FAO Schwartz (708-295-9496) plans to open a 15,000 sq.ft. toy store in downtown Seattle this fall.

United Artists Theater Circuit (303-792-8255) plans to open a 10-screen movie theater in Fresno, CA by the end of the year.

Perkins Family Restaurants (901-766-6400) plans to open a new concept called Perkins Express & Bakery during July at the Memphis airport under a license to Host Marriott. The concept will serve a selected number of Perkins Family Restaurant products such as pancakes, omelets, sandwiches, salads and a limited line of dinners. The dining area will seat 140 people.

Kohl Corp. (414-783-5800) plans to open 20 department stores by the end of this year. The company currently operates 108 stores.

Gap (415-952-4400) plans to open a 4,500 sq.ft. GapKids store in Seattle, WA during September.

Musicland Stores Corp. (612-932-7700) plans to open Media Play stores in Pontiac, Saginaw, Grand Rapids, Southfield, Clinton Township and Utica, MI by the end of the year. In addition, the company plans to open up to 50 additional Media Play stores, 75 On Cue stores and 30 Suncoast Video stores by the end of this year.

OfficeMax (216-921-6900) is planning to open a second store in Anchorage, AK by the end of this year. The store is expected to be opened at Northway Mall.

Central South Music Sales, Inc. (615-833-5960), which trades as Sound Shop and Music for Less, is planning to open a store in Marrero, LA by the end of this year. The company currently operates 79 stores in OH, CO, FL, NC, SC, VA, GA, MI, AL, TN, NY and OK.

Lots to Love (308-345-5055) plans to open stores in Noblesville, IN and Normal, IL by the end of the year. The company currently operates 39 stores, specializing in large size clothing for women, nationwide.

Ludwig Music House, Inc. (314-739-7007) plans to open a Ludwig Aeloian Music Store in St. Louis, MO by the end of the year. The company currently operates two stores in MO and CA.

Tiger Schulmann's Karate Centers (212-682-4300) recently opened sites in Rego Park, Queens, NY and Massapequa Park, Long Island, NY. The company plans to open a unit in Islandia Center, NY this month and another unit on the Gulf Coast of FL during the summer. Over the course of the next 18 months, the company plans to open 15 locations in the greater New York City and Philadelphia metropolitan areas.

Schultz Sav-O Stores, Inc. (414-457-1980) plans to open a Piggly Wiggly supermarket in Sheboygan, IL this year. The company currently operates 86 supermarkets in IL and WI.

Mars Supermarkets (410-282-2100) plans to open a supermarket in MD this year. The company currently operates 12 stores in MD.

Hammond Tots & Toys (801-278-0157) plans to open a toy store in UT this year. The company currently operates five stores in UT.

Montgomery Ward (312-444-9797) plans to open an Electric Avenue & More store in Grand Forks, ND by the end of this year.

Edison Brothers Stores (314-331-6000) plans to open 20 Precis stores by the end of this year.

Store Closings

Stuarts Department Stores (508-520-4540) plans to close four stores this year. The stores in Athol, Chelsea and Fitchburg, MA along with the Goffstown, NH store will all be closed. Once the stores are closed, the company will operate nine stores.

Danks & Co. (717-248-6794) plans to close it four PA department stores this year. Two of the stores are located in State College with one each in Lewistown and Clarion.

Federated Department Stores (513-579-7000), parent company of R.H. Macy's, plans to close the 14 Macy's Close-out stores by the end of the year. The company also announced that it has postponed its plans to anchor MacArthur Center in Norfolk, VA.

United Artists Theater Circuit (303-792-8255) plans to close the Sameric 4 movie theater in Philadelphia, PA.

Kmart (810-643-1000) plans to close its Williamstown, NC store during July. The company has operated at the location for the past 16 years.

Steinbach Inc. (914-683-1360) plans to close its department stores in Newburgh, Middletown and Poughkeepsie, NY.

To The Editor

To the Editor:

Just thought I'd drop you a note to thank you. Have already received several calls from interested parties about items shown in the Buyers and Sellers column of the latest issue of The Dealmakers. It works! Thanks, again!

Jim Blumberg, MCR, GRI

President,

Blu-Reich Co., Inc.,

Nashville, TN

Lease Signings

KLNB, Inc. (410-321-0100) leased 11,400 sq.ft. to Golden Corral restaurant at Eastpoint Mall in Baltimore County, MD; 1,400 sq.ft. to L.A. Perfect Nails at White Marsh Plaza in Baltimore County, MD and space to Budeke's Paints, Inc. at Woodholme Square in Baltimore County, MD.

Mid-America Asset Management Co. (708-954-7300) leased 6,000 sq.ft. to Stuarts at Downers Park Plaza in Downers Grove, IL; 1,600 sq.ft. to Breaking Bread at Red Top Plaza in Libertyville, IL; 2,600 sq.ft. to Burdeen's Jewelry at Chase Plaza in Buffalo Grove, IL; 600 sq.ft. to Fannie Mae Candies at Beloit Mall in Beloit, WI and 2,999 sq.ft. to Payless Shoes at MarketPlace in Rockford, IL.

CB Commercial Real Estate Group (708-948-6907) leased two spaces to Med Mart. The first space was for 5,888 sq.ft. on Chicago's North Side and the second was for 4,372 sq.ft. in Oak Lawn, IL.

Paster Enterprises (612-646-7901) leased 1,200 sq.ft. to Star Nails at Central Plaza in Minneapolis, MN.

Grubb & Ellis (714-937-0881) leased 13,500 sq.ft. to The Stinking Rose in Beverly Hills, CA.

Morbitzer Group, Inc. (407-539-1000) leased 1,000 sq.ft. to Gator Fever and 1,200 sq.ft. to Athena Restaurant at Center of Winter Park in Winter Park, FL; 1,736 sq.ft. to Via Postal at Shoppes of International Place in Orlando, FL; 750 sq.ft. to Clay Travel Services, Inc. at Magnolia Layne Shopping Center in Green Cove Springs; 2,788 sq.ft. to Andrea's Unique Boutique and 3,125 sq.ft. to The Futon Place at Sherwin Williams in Orlando, FL.

Neal Mannausa, Inc. (813-365-1511) leased 2,125 sq.ft. to Canac Kitchens of Tampa Bay and 2,125 sq.ft. to Tivoli Services, Inc. at DeSoto Commerce Plaza in Sarasota, FL and 3,000 sq.ft. to China Blossom Restaurant at the Avenue of Flowers Shopping Center in Longboat Key, FL.

AmCap Properties, Inc. (303-321-1500) leased 6,240 sq.ft. to Blockbuster Video at Safeway Marketplace in Longmont, CO and 2,400 sq.ft. to Western Sports at Orchard Plaza in El Jebel, CO.

Baita Property Services, Inc. (904-739-2208) leased 10,000 sq.ft. to The Christmas Collection at Market Place in Orange City, FL and renewed the lease of Michael's for a 17,397 sq.ft. space at Riverplace Shopping Center in Jacksonville, FL.

Koll (714-833-3030) leased 1,840 sq.ft. to Big Apple Bagels, 2,100 sq.ft. to Fast Frame and 6,000 sq.ft. to PetCare at Hinsdale Lake Commons in Willowbrook, IL.

The Sansone Group, Inc. (314-822-9009) leased 5,385 sq.ft. to Sofa & Chair Company at Plaza at Sunset Hills in St. Louis, MO; 1,956 sq.ft. to Colonel Day's, Inc. at Barret Station Shopping Center in St. Louis, MO; 6,568 sq.ft. to One Way Book Shop at Mid Rivers Center in St. Peters, MO; 6,800 sq.ft. to Woodcraft Supply Corp. and 2,100 sq.ft. to Everything Pets Animal Hospital at Dierbergs Heritage Place in Creve Coeur, MO; 1,750 sq.ft. to Subway at Gravois Village Plaza in High Ridge, MO and 7,560 sq.ft. to New Lady Fitness and 3,840 sq.ft. to Melmark Crafts at Ronnie's Plaza in St. Louis, MO.

Smith Braedon*ONCOR International Retail Services Group (202-775-7615) leased 858 sq.ft. to Omaha Steaks at Shoppes of Bethesda in Bethesda, MD; 7,556 sq.ft. to Warner Brothers and 2,680 sq.ft. to Another Universe in Washington, D.C.; 52,216 sq.ft. to Reliable Stores at Smoketown Plaza in Woodbridge, VA and 7,383 sq,.ft. to Fresh Choice, 15,097 sq.ft. to Super Crown Books and 25,121 sq.ft. to Fresh Fields at Plaza America in Reston, VA.

Goldstein Realty Group, Inc. (904-348-3900) leased 50,000 sq.ft. to Winn Dixie, 29,166 sq.ft. to Heilig-Meyer's Furniture Co., 25,000 sq.ft. to 50-Off Stores, 25,000 sq.ft. to Big Lots and 22,000 sq.ft. to Spa Lady at Beach Boulevard Shopping Center in Jacksonville, FL.

Scotmar Property Associates, Inc. (610-825-9294) leased 24,000 sq.ft. to Library Video Company at Lee Park in Conshohocken, PA; 20,000 sq.ft. to Pep Boys at Collegetown Shopping Center in Glassboro, NJ; 2,200 sq.ft. to Mom's Bagels at MacArthur Road Plaza in Whitehall, PA; 2,000 sq.ft. to Blimpie's Restaurant at Hillcrest Mall in Phillipsburg, NJ; 1,700 sq.ft. to Aston Sports at Village Green Shopping Center in Aston, PA and 2,000 sq.ft. to Willowbrook Dry Cleaners and 800 sq.ft. to Perfect Scents at Willowbrook Shopping Center in Boothwyn, PA.

Lead Sheet

Dancer's, Inc.

dba Dancer's

Douglas Dancer

566 N. Cedar Street

Mason, MI 48854

517-676-4474, Fax 676-4554

Apparel

The 30-unit chain of family apparel stores operates locations in MI and IN. The family apparel stores occupy spaces of 7,500 sq.ft. in strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 15,000 within three miles earning at least $35,000 as the average income. Leases running three years are typical.

Genuine Parts Co.

dba NAPA Auto Parts

Karl Koenig

2999 Circle 75 Parkway

Atlanta, GA 30339

404-953-1700, Fax 956-2212

Automotive

The 700-unit chain operates locations nationwide with the exception of HI, OK, MD, DE and NJ. The company, which does not franchise, also has approximately 5,200 independently-owned stores who buy parts from NAPA in return for being allowed to use the NAPA name. The automotive parts and accessories stores occupy spaces of 8,000 sq.ft. in freestanding facilities. Preferred anchors include Home Depot, Home Quarters, Lowe's and other do-it-yourself type businesses. Plans call for up to 75 openings in the coming 18 months. Expansion will take place in the existing markets. The company prefers to purchase its sites.

Bed Bath & Beyond

Steve Temares

715 Morris Avenue

Springfield, NJ 07081

201-379-1750, Fax 379-1731

Bed & Bath

The 62-unit chain operates locations in NY, NJ, MA, CT, MS, MI, IL, FL, PA, GA, CA, AZ, TX, MD and VA. The bed, bath and housewares stores occupy spaces of 30,000 sq.ft. to 85,000 sq.ft. in freestanding facilities, regional malls, outlet, power and strip centers. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 200,000 within five miles earning $50,000 as the average income. Leases running 10 years are typical.

Brodney & Sons

dba Leejay Bed & Bath

Larry Brodney

260 Bear Hill Road

Waltham, MA 02154

617-890-4333, Fax 890-1834

Bed & Bath

The 49-unit chain operates locations in NY, PA, MA, RI, CT, ME, NH and VT. The stores, selling linens and domestics, occupy spaces of 20,000 sq.ft. in power and specialty centers. Plans call for five openings in the coming 18 months. Expansion will take place in New England and PA. Leases running 15 years are typical.

Walden Book Co., Inc.

dba Waldenbooks

Charles Hueston

201 High Ridge Road

Stamford, CT 06904

203-352-2000, Fax 352-2746

Books

The 1,000-unit chain operates locations nationwide. The traditional bookstores occupy spaces of 2,700 sq.ft. in regional malls, and its new concept stores, Waldenbooks/Waldenkids, occupy spaces of 7,000 sq.ft. to 10,000 sq.ft. Plans call for five openings in the coming 18 months. Expansion will take place nationwide. The company also plans to convert 50 Waldenbooks into the Waldenbooks/Waldenkids concept.

Hallmark Cards

dba Hallmark

Jerry Grecian

2501 McGee

Kansas City, MO 64108

816-274-4721, Fax 274-3708

Cards & Gifts

The company operates 200 company-owned locations and sells its products to more than 7,700 locations nationwide. The stores occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in downtown store fronts, regional malls, power and strip centers. Plans call for up to 300 openings in the coming 18 months. Expansion will take place nationwide.

Florida Academic

dba Tutor Time,

Tim Minette

National Franchise Realty Group Inc.

4517 N.W. 31st Avenue

Fort Lauderdale, FL 33309

305-730-7552, Fax 730-7550

Child Care

The 60-unit chain operates locations in FL, GA, AL, NJ, NY, NC, SC, IN, OH, IL, TX, CA, CO, NV and WA. The child care centers occupy spaces of 8,000 sq.ft. to 12,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power, specialty and strip centers as well as vacant land for build-to-suits. Sites must have contiguous playground areas. Preferred anchors include family or child related tenants. Plans call for 50 openings in the coming 18 months. Expansion will take place throughout North America. Preferred demographics include a population of 40,000 within three miles earning at least $40,000 as the average income. Leases running 10 years are typical. The company is franchising.

Prestige Fragrance & Cosmetics, Inc.

dba Prestige Fragrance & Cosmetics

David Levin

2182 Route 35

Holmdel, NJ 07733

908-888-4201, Fax 739-1546

Cosmetics

The 175-unit chain operates locations in 45 states. The stores occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in outlet centers. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years are typical.

Audio King Corporation

dba Audio King

Gary Thorne

3501 S. Highway 100

St. Louis Park, MN 55416

612-920-0505, Fax 920-0940

Electronics

The 11-unit chain operates locations in MN, IA and SD. The stores occupy spaces of 15,000 sq.ft. to 25,000 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets as well as ND and NE. Preferred demographics include a population of 40,000 within three miles earning at least $35,000 as the average income. Leases running 15 years are typical.

The Piece Good Shop

dba Piece Good Shop,

Piece Good Shop Home Center

Greg Dobis

280 Charlois Boulevard

Winston-Salem, NC 27103

919-768-3930, Fax 760-1641

Fabric

The 207-unit chain operates locations in AL, DE, FL, GA, KY, MD, MA, MI, NC, OH, PA, SC, TN, VA and WV. The stores, selling fabric, crafts and home decorating products, occupy spaces of 10,000 sq.ft. in power, specialty and strip centers as well as freestanding facilities. Preferred anchors include Target. Plans call for 45 openings, many of which will be store relocations, in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 90,000 within five miles earning at least $15,000 as the average income.

Dollar Tree Stores, Inc.

dba Dollar Tree

David Thomas

2555 Ellsmere Road

Norfolk, VA 23501-2500

804-857-4600, Fax 857-5240

General Merchandise

The 430-unit chain operates locations from NY to FL, East of the Mississippi River, TX, AR and LA. The stores occupy spaces of 3,200 sq.ft. to 3,500 sq.ft. in regional malls, power and strip centers. Preferred anchors include Wal*Mart, Target, Kmart, Caldor, TJ Maxx and supermarkets. Plans call for at least 70 openings in the coming 18 months. Expansion will take place in the Midwest, Southcentral and Eastern regions. Leases running four years with options are typical.

Beauty Management, Inc.

dba Perfect Look Hair Fashion

Michael Clark

5188 S.E. International Way

Milwaukee, OR 97222

503-654-5477, Fax 659-9051

Hair Salon

The 52-unit chain operates locations in OR and WA. The salons occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in regional malls, power and strip centers. Plans call for up to six openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years with a five-year option are typical.

Westlake Ace Hardware, Inc.

dba Westlake Ace Hardware

Paul Moydell

15501 West 99th Street

Lenexa, KS 66219

913-888-0808, Fax 888-2153

Hardware

The 52-unit chain operates locations in OK, KS, MO, IA, NE, TX, NM and AR. The stores occupy spaces of 25,000 sq.ft. in strip centers and freestanding facilities. Preferred anchors include supermarkets. Plans call for up to eight openings in the coming 18 months. Expansion will take place in TX. Preferred demographics include a population of 50,000 within two miles earning at least $35,000 as the average income. Leases running five years with options are typical.

Weight Watchers International

dba Weight Watchers

Lou Mancuso

500 N. Broadway

Jericho, NY 11753

516-949-0682, Fax 949-0699

Health

The 1,200-unit chain operates locations throughout North America. The weight loss centers occupy spaces of 2,300 sq.ft. in power and strip centers. Preferred anchors include supermarkets and women's apparel tenants. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 150,000 within three miles earning $50,000 as the average income. Leases running five years are typical.

Hobby Lobby Stores

dba Hobby Lobby Creative Centers

Bill Darrow

7707 S.W. 44th Street

Oklahoma City, OK 73179

405-681-5997, Fax 682-6921

Hobby

The 97-unit chain operates locations in OK, TX, LA, KS, AR, CO, NM, NE, TN and MD. The hobby, arts and crafts stores occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Kmart and Wal*Mart. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical.

Duron, Inc.

dba Duron Paint & Wallcovering

Tom Grasberger

10406 Tucker Street

Beltsville, MD 20705

301-937-4600, Fax 937-4371

Home Improvement

The 200-unit chain operates locations in IN, FL, SC, CA, NC, VA, MD, PA, TN, OH and Washington, D.C. The stores occupy spaces of 2,500 sq.ft. to 3,600 sq.ft. in freestanding facilities and strip centers. Preferred anchors include supermarkets. Plans call for 20 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 90,000 within three miles earning $45,000 as the average income.

Payless Cashways, Inc.

dba Payless Cashways, Hugh M. Woods

Somerville Lumber, Furrow

Knox, Lumberjack

James O'Keefe

2300 Main Street

Kansas City, MO 64108

816-234-6630, Fax 234-6781

Home Improvement

The 202-unit chain operates locations in AR, AZ, CA, CO, IA, IL, IN, KS, KY, LA, MA, MN, MO, MT, NE, NH, NM, NV, OH, OR, TX and OK. The stores occupy freestanding facilities on 11 acres of land. Plans call for up to eight openings in the coming 18 months. Expansion will take place nationwide.

Bentley's Luggage Corp.

dba Bentley's Luggage

Robert Young

3353 N.W. 74th Avenue

Miami, FL 33122

305-591-9700, Fax 477-4131

Luggage

The 91-unit chain operates locations in FL, GA, MI, PA, IL, MD, MN, MS, OH, SC, VA, AL, KY, MA, TN, WV, WI and Puerto Rico. The stores, selling luggage, attache cases and gifts, occupy spaces of 2,200 sq.ft. to 5,000 sq.ft. in regional malls and outlet centers. Plans call for five openings in the coming 18 months. Expansion will take place in FL, VA, IN, PA and MI. Leases running 10 years are typical.

Jack Brenner Investments, Inc.

dba Jack's Aquarium & Pets

John Brenner

1755 Spaulding Road

Dayton, OH 45432

513-252-9947, Fax 252-0761

Pet Store

The 23-unit chain operates locations in FL and OH. The pet stores occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in power centers. Plans call for three openings in the coming 18 months. Expansion will take place in OH. Leases running five to seven years are typical.

Kit's Cameras, Inc.

dba Kit's Cameras

Mary Montross

6051 S. 194th Street

Kent, WA 98032

206-872-3688, Fax 872-8419

Photo

The 120-unit chain operates locations in OR, ID, WA, AK, CA and AZ. The stores, selling cameras and related equipment, occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in regional malls and large community centers. Plans call for 20 openings in the coming 18 months. Expansion will take place in the existing markets as well as NV, TX and NM. Leases running 10 years for mall spaces and five years with a five-year option for community center spaces are typical.

Strings Franchise, Inc.

dba Strings Italian Cafe,

Strings Italian Express

Karen Easton

11344 Coloma Road #545

Gold River, CA 95670

916-635-3990, Fax 631-9775

Restaurant

The 29-unit chain operates locations in CA. The restaurants, serving Italian food, occupy spaces of 500 sq.ft. to 2,800 sq.ft. in downtown store fronts, freestanding facilities, regional malls, outlet and strip centers. Plans call for 25 openings in the coming 18 months. Expansion will take place in OR, WA, CA and NV. Preferred demographics include a population of 35,000 within five miles earning $35,000 as the average income. Leases running five to 10 years are typical. The company is franchising.

Feldman's, Inc.

dba Feldman's

Lee Feldman

109 Main Street

Newton, MS 39345

601-683-3511, Fax 683-7001

Shoes

The 10-unit chain operates locations in MS. The stores, selling branded men's and women's athletic shoes, occupy spaces of 4,000 sq.ft. in strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for two openings in the coming 18 months. Expansion will take place in MS and AL. Leases running one to four years are typical.

Wild Birds Unlimited

Paul Pickett/Tom Fihe

11711 N. College Avenue/ Suite 146

Carmel, IN 46032

317-571-7100, Fax 571-7110

Specialty

The 196-unit chain operates locations throughout North America. The stores, selling bird seeds, feeders, houses and nature related gifts, occupy spaces of 1,400 sq.ft. to 2,400 sq.ft. in strip centers and freestanding facilities. Plans call for 40 openings in the coming 18 months. Expansion will take place nationwide. Leases running three to five years are typical.

Exclusives: Leasing & Management Assignments

Goldstein Realty Group, Inc. (904-348-3900) has been appointed the exclusive leasing agent for Regency Park Shopping Center in Jacksonville, FL. The 328,000 sq.ft. project, located adjacent to Regency Square Mall, is anchored by Service Merchandise, Marshall's, Baby Superstore, Michael's Arts & Crafts, Outback Steakhouse and Rhodes Furniture. Spaces from 1,000 sq.ft. to 25,000 sq.ft. are available.

Cohen Financial Corporation (312-346-5680) has been appointed property manager of Meridian Retail Center in Aurora, IL. The 150,000 project is anchored by Builders Square II, PetsMart and Super Trak Auto.

Neal Realty & Investments, Inc. (305-568-0530) has been appointed exclusive marketing agent for Woodlake Plaza, a 165,000 sq.ft. project located in Green Acres, FL; 2860 North State Road 7, a 10,000 sq.ft. project located in Lauderdale Lakes, FL; Delray West Plaza, an 80,000 sq.ft. project located in Delray Beach, FL and for 2561 Forest Hill Boulevard, a 5,000 sq.ft. building in West Palm Beach, FL.

Scotmar Property Associates, Inc. (610-825-7494) has been appointed the exclusive leasing representation for Frank Theaters, the largest independent theatre chain in NJ, with 18 locations and 75 screens. The company was also appointed the exclusive leasing agent for Bay Shore Mall in North Cape May, NJ. The 175,000 sq.ft. project is anchored by Acme Supermarket, Jamesway Department Store, Thrift Drug, McDonald's and Kentucky Fried Chicken. Currently, 5,800 sq.ft. is available for leasing and an expansion of 50,000 sq.ft. is planned.

Buyers & Sellers of Commercial Properties

London Fog Industries is selling 29 of its leases in outlet centers nationwide. Base rents range from $6 to $13.50 psf and spaces range from 3,274 sq.ft. to 6,775 sq.ft. Expiration dates range from immediate to 1999.

For details, contact Andy Graiser of DJM Asset Management at (212-564-2800), Fax (564-2955).

Restaurant Capital Corp. is selling three Taco Bell restaurants and one Arby's restaurant in Columbia, SC and Charlotte, NC. Included is the land and building with a NNN lease in place. The franchisee guarantees lease, not parent company. The asking prices range from $500,000 to $650,000.