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The
Dealmakers Issue Number 38 for the week of October 27, 1995. Entertainment
Tenants Expanding Wehrenberg
Theatres operates 30 locations in AZ, IL and MO. The
movie theaters occupy spaces of 16,000 sq.ft. to 30,000 sq.ft. in freestanding facilities,
regional malls, outlet and power centers. Preferred
anchors include major retail tenants and supermarkets.
Plans call for as many as eight openings in the coming 18 months. Expansion will take place in the Midwestern and
Southwestern regions. Preferred demographics
include a population of at least 100,000 within 10 miles earning at least $40,000 as the
average income. The 89-year-old company
typically signs a 20-year lease, prefers a structure with demising walls in place, plus
certain tenant improvements and cites AMC as competition. For more information, contact John Louis,
Wehrenberg Theatres, 1215 Des Peres Road, St. Louis, MO 63131; 314-822-4520. Electronic
Experience operates six locations nationwide. The
concept offers coin-operated amusement games while using spaces from 1,500 sq.ft. to
15,000 sq.ft. Growth opportunities are sought
in CA. Preferred demographics include a
population of 100,000 within three miles. The
16-year-old company typically signs a 10-year lease. For more information, contact Jon Daugherty,
Electronic Experience, PO Box 1189, Rancho Mirage, CA 92270; 619-343-2555, Fax 343-2515. The
Bureau of Creativity, Inc. does business as Psychic Fair at one location in FL. The concept offers psychic reading and sells
crystal jewelry and Native American dream catchers in a kiosk location in a regional mall. Growth opportunities are sought nationwide. For more information, contact George Tucker, The
Bureau of Creativity, Inc., PO Box 26953, Tamarac, FL 33320; 305-726-7256, Fax 726-1360. Mini-Golf,
Inc. operates 1,647 locations nationwide. The
concept offers pre-fabricated miniature golf courses for both indoor and outdoor use while
using spaces of 3,000 sq.ft. to 4,000 sq.ft. at regional malls and strip centers. Growth opportunities are sought nationwide. For more information, contact Joseph Rogari,
Mini-Golf, Inc., 202L Bridge Street, Jessup, PA 18434; 717-489-8623, Fax 383-9970. Standard
Theatres operates six locations in HI, NV and OH. The
movie theaters occupy spaces of 8,000 sq.ft. to 35,000 sq.ft. in central business
districts, regional malls and strip centers. Plans
call for five openings within the coming 18 months. Expansion
will take place nationwide. The company
prefers to take over existing operations being abandoned by present operators, and prefers
a landlord allowance of $65 psf for build out or conversion of a retail store to a
theater. The company typically signs a
20-year lease with five options of five years each. For more information, contact Samuel K. Freshman,
Standard Theatres, 6151 West Century Boulevard/ Suite 300, Los Angeles, CA 90045-5314;
310-410-2300, Ext. 306, Fax 410-2919. Real
Estate Agents Assess U.S. Markets The following is an excerpt of an article written
by Peter Carissimo, an appraiser based in Southern California. Peter's article piqued our interest at the
Dealmakers because we were hearing similar sentiments from fellow dealmakers who are
involved in all aspects of real estate nationwide. Some
thoughts from other real estate professionals from the Dealmakers real estate forums on
the Internet have been folded into Peter's article. From 1989 through the beginning of 1991 was the
peak of the real estate market. Then, as
expected, a correction in market values came about. This
correction was just a natural part of the statistical cycle, which typically follows a
seven to nine year growth trend, and requires no outside influence or manipulation of the
market, while taking no longer than three years and at least two years for signs of
recovery to surface with increasing values or at least a halt to decreasing property
values. The last cycle we encountered was unduly affected
by a presidential election, which was also aligned with an uncertainty of results and
future policy direction of the federal government. Shopping
centers aren't the only income producing properties that are experiencing a loss of income
due to arrears and tenants' inability to meet rent increases written in the late 80s and
early 90s. A serious effort on behalf of
recognizing the collection loss problem and valuing its effect is needed in order to
report an accurate accounting of the quality of income a property is achieving. Atlantic & Pacific Realty Property Consultants
recently appraised a center in Southern California with a 77% occupancy factor, of which
17% of the tenants can't afford to pay their rent and are 30 to 120 days in arrears. Most of the tenants will not be able to pay the
rent increases as per their original lease. In
another appraisal, Atlantic & Pacific Realty Property Resources reviewed a center with
over 15% of its rental income in arrears. An
appraiser, not affiliated with Atlantic & Pacific Realty, discounted the arrears to a
4% level and added the space that was tenanted by stores that reflected the remaining 11%
in arrears to the actual vacancy of the center. This
was a good example of how to avoid the full impact of lost rents, even though the figures
on paper have little to do with reality and in essence, the figures are not true when you
compare it to similar centers that suffer from arrears.
Carissimo explains, "vacancy should be stated separately and collection loss
should be measured separately and be actual, not discounted. Discounting collection loss and adjusting the
vacancy factor blurs the figures and does not properly depict income and the quality of
the income." Carissimo summed this type
of scenario aptly with "just looking at existing leases that tenants can't afford to
pay now and valuing them as written without knowledge of the tenant's problems is like
playing pin the value on the property by the blindfolded donkey." Southern California was knocked for a loop during
the latest market correction. It was directly
affected by cuts in the defense industry, a major employer in Southern California; the
Rodney King trial and subsequent riots; earthquakes rocking both Northern and Southern
California, which was followed by an exodus of residents and business leaving California
for Arizona, Nevada, Texas, Colorado and the Midwest; and fires and floods. California, the Southern region in particular,
was like a boxer getting up after a knockdown, but before it could rise to its knees it
was sucker punched back to the mat, taking longer each time to rise again. Instead of the typical two-year market correction,
Southern California has suffered a five and going on six-year period of trying to rebound
due to numerous unforeseen influences. The economic climate of California today is very
wary and moving forward slowly. The outlook
is hopeful, which is a characteristic of California, but there has been a great loss of
jobs and people who have moved away. The
current measurement of growth shows some industry has come back due to lower rents of both
commercial and residential space. Caryl
Iseman of Associated Lenders, a mortgage brokerage firm based in San Diego, states
"apartment sales have picked up in the last six months because our vacancy factor has
stabilized and the per unit cost is now probably half of its value five years ago. Commercial and industrial sales are weak, but not
in all areas of our county." Dale
Dockins of Polley Polley & Madsen Realtors, who deals primarily in Northern California
from San Francisco to Sacramento and up to Oregon, finds that "in my market
apartments are very slow, office is slow, industrial is good and shopping centers would be
good if we had a decent inventory at decent prices. I
have had the best results from agricultural properties in the wine country because the
demand for premium wine is moving the market in a positive direction. Also, other agricultural businesses are booming
and expanding." According to Landauers 1995 Real Estate Market
Forecast on pages 6 & 7, it stated "Employment patterns provide a ready measure
of the recent economic shifts and their implications.
Job gains have spread to the point where 48 of the 50 states are adding jobs. Only California and Hawaii were still in the
decline as of mid-1994, and the large California economy should turn modestly positive in
the coming year. Overall, 85% of the nation's
largest Metropolitan Statistical Areas are gaining jobs, six of the eight that are still
in decline are located in California: Los Angeles, San Diego, Orange, San Francisco,
Oakland and San Jose counties." The
level of gain or decline in jobs has a direct relationship to vacancy rates, income
potential and the competitiveness of the rental market where a potential tenant has many
choices with leasing agents offering aggressive deals.
As a result, credit screening of prospective tenants has become less restrictive. Tom Horn of Thomas Horn Realty in Sunny Valley,
Oregon deals mostly with equity swapping and 1031 exchanges of investment property and
finds in his market "commercial development is doing well as it should considering
the length of the economic expansion in Oregon. Good
income property is very hard to find, but there is still lower grade income and investment
property available at 10% cap rates. There is
still demand for houses in the lower price ranges, but middle to upper priced homes are
not moving. There are rumors that some
builders in some areas of the state are close to being in trouble and that some areas
might be overbuilt. All of this comes with a
state economy that is doing very well. If
there are problems in residential development, it has much more to do with greed in
listing prices than with demand for housing. In
summary, it takes much more work to find a good deal for my investors. Some of that work involves telling owners to have
realistic expectations." Alex Gurevich of Austin, Texas states "here
in Austin, the apartments, commercial and industrial rental markets are very tight;
substantial demand, supply and new construction is still trying to catch up. We are going through a peak of the economic-real
estate cycle. Brokers are enjoying lots of
leasing and buying activity. Landlords enjoy
high and growing rents. Yet, from my
standpoint of an apartment investor, buying in this market with its outrageous prices is
not too smart. We have been experiencing
growth since 1989. Today, however, the rents
and prices are perhaps at the verge of maxing out. I
might be mistaken, but I don't see much growth in the near term. The market is good because I can sell and take
hefty profits, yet the market is bad because there is nothing to buy for future
profits." Alfred Benson of Tucson, Arizona notes "the
retail market in Tucson is rapidly recovering from the downturn of the late 1980s and has
been showing a 2.5% to 3.8% population growth, with annual job growth in the 6% to 8%
range during the past two to three years. This
has stimulated the catch-up in retail. The
market had a good influx of big box users during the early 1990s, as well as three new
supermarket chains to the market, Albertsons, Smitty's and Basha's. Developers couldn't get financing for small shop
space, so they either built single boxes or went in with Walgreens. In addition, Tucson had three new Targets, three
new Super K's, an Ernst and a new 127,000 sq.ft. Wal*Mart to replace the three-year-old
86,000 sq.ft. Wal*Mart. Currently, we're
seeing a major influx of restaurants, including Boston Market, Pancho's, IHOP and Outback
Steakhouse. Prices range from $5 to $8 for
two-acre secondary sites to around $20 for prime corners on one acre - $500,000 to
$800,000 per site. Shop space is finally
getting back, as lenders react to market changes. Linkletter
Properties is building a 10,500 sq.ft., $130,000 store space adjacent to Smitty's Market
in a growth area; Mehl Properties is building a 100,000 sq.ft. shopping center with small
shops in the same area; George Larsen built a Basha's center with small stores in an
established, affluent area about a year ago. Rumors
are that more stores are planned, as rents return to mid-teens, triple net. Northmall Center, just north of Tucson's largest
mall, has continued to develop over the past five years with major discounters and fast
food restaurants even when the rest of the market was dead.
Other sectors of Tucson are also heating up, with low and declining office
vacancies; substantial shortage of 10,000 to 20,000 sq.ft. warehouse space; apartments in
the moderate range may have neared a peak after two and one-half years of rent increases,
but still sitting just below replacement cost in most cases; luxury apartments appear to
be in the process of being substantially overbuilt, which will cause overall vacancy rates
to rise and likely scare off less perceptive lenders.
Microsoft's announcement of opening in Tucson may push our upper price segments,
with 1,200 employees, most of which are moving in from elsewhere." Easteddie@aol.com (in our forums, sometimes all we
have is their Email address) wrote "here in central Florida, our sales of mobile home
parks and RV parks is fair to good, shopping center sales are down, and apartment sales
are slow. It may be due to the fact that
many of our buyers are from the Midwest and expect prices to be lower and terms more
favorable to the buyer, than many of our Florida sellers expect." Chris Abel, Editor of California Centers, shared
two articles that appeared in his magazine that deal with the complications shopping
centers currently face in California. One
article written by Geoffrey Sears, Vice President, Senior Asset Manager, Citicorp Real
Estate, Inc., starts out with "Low occupancy, nonpaying tenants, mismanaged or poorly
maintained facilities and a tarnished reputation within the community are just some of the
problems lending institutions face with foreclosed retail properties." Another article by Gail Peterson, Founder Alliance
Management Group, Inc., states "Gone are the days when finding reliable tenants to
fill vacant space was an easy task. Tenants
that once would have been viewed as undesirable are now being considered a viable source
of income." Reports by all types of expert sources repeatedly
list Southern California as the area suffering the most with the least recovery, while
markets in the Midwest and Northwest benefit by the exodus from Southern California. Cities like Omaha have gained as a result and are
advertising in other states for people to move to Omaha and take up more than 7,000
available jobs being offered. For Omaha, the
growth has been so incredible that McDonald's is paying $8 an hour as a starting wage. The changing market in real estate never defies
the adage "what comes around goes around" and usually when one area of the
country takes a nose dive, then another picks up some of the debris to its benefit, but
this substantiates the point to study and learn from the mistakes of others. A brutally honest quote offered by Carolyn
Rosenburg of Grub & Ellis is "there appears to be a synergism of related
professionals, related to this industry, that would rather paint a picture of increased
growth and potential, than to address the realities of the market place." For more information, contact Peter W.
Carissimo ASA, CEO Atlantic & Pacific Real Property Consultants L.L.C., 1820 West
Orangewood/ Suite 210, Orange, CA 92668; 714-978-7410, Fax 978-7411. Food
Tenants Hungry for New Locations Nationwide Bugaboo
Creek Steak House, Inc. trades as Bugaboo Creek Steak House at 10 locations in the
Mid-Atlantic and Northeastern states. The
family restaurants occupy spaces of 7,800 sq.ft. in freestanding facilities, regional
malls and end caps of strip centers. Plans
call for 10 openings in the coming 18 months. Expansion
will take place in the existing markets. For more information, contact Jeff Ryan, Bugaboo
Creek Steak House, Inc., PO Box 276, Seekonk, MA 02771; 401-433-5500, Ext. 115, Fax
433-5986. Timber
Lodge Steakhouse, Inc. trades as Timber Lodge Steakhouse at nine locations in MN, NY and
SD. The restaurants occupy spaces of 6,500
sq.ft. to 7,000 sq.ft. in freestanding facilities and power centers. Plans call for 12 openings in the coming 18
months. Expansion will take place in the
Northeastern, Northwestern and Upper Midwestern regions.
Preferred demographics include a population of 100,000 within five miles earning
$40,000 as the average income. The
three-year-old company typically signs a five-year lease and cites Outback Steakhouse and
Lone Star Steakhouse as competition. For more information, contact Dermot Rowland,
Timber Lodge Steakhouse, Inc., 4021 Vernon Avenue South, St. Louis Park, MN 55416;
612-929-9353. Ben
& Jerry's Homemade, Inc. operates 130 units in NJ, NY, PA, IL, OH, GA, NC, CA, IN, RI,
NH, ME, VT, MA, CT, VA and FL. The stores,
selling ice cream and frozen yogurt, occupy spaces of 600 sq.ft. to 1,200 sq.ft. in
downtown store fronts and freestanding facilities. Plans
call for as many as 100 openings in the coming 18 months.
Expansion will take place in WA, OR and TX. The
company is franchising. For more information, contact Carol Hedenberg, Ben
& Jerry's Homemade, Inc., PO Box 240, Waterbury, VT 05676-0240; 802-244-6957, Fax
244-1629. Newport
Creamery operates 36 locations in CT, MA and RI. The
restaurants, serving fast food and ice cream, occupy spaces of 2,500 sq.ft. to 3,500
sq.ft. in freestanding facilities, regional malls and strip centers. Preferred anchors include Lord & Taylor,
Wal*Mart and supermarkets. Growth
opportunities are sought in the existing markets. Leases
running 10 years are typical. For more information, contact Peter Rector,
Newport Creamery, 208 West Main Road, Middletown, RI 02842; 401-847-0390, Fax 848-5984. Biscuitville,
Inc. trades as Biscuitville at 36 locations in NC and VA.
The fast food restaurants occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for nine openings in the coming 18
months. Expansion will take place in NC. The 27-year-old company typically signs a 15-year
lease. For more information, contact Burney Jennings,
Biscuitville, Inc., PO Box 2600, Burlington, NC 27216; 910-229-6671, Fax 229-5246. Embers
Restaurants, Inc. trades as Embers at 27 locations in IA, MN, ND, SD and WI. The restaurants occupy spaces of 5,000 sq.ft. to
5,500 sq.ft. in freestanding facilities. Preferred
anchors include major retailers. Plans call
for as many as five openings in the coming 18 months.
Expansion will take place in the existing markets.
Preferred demographics include a population of 35,000 within three miles earning
$30,000 as the average income. The
39-year-old company prefers to own its locations. For more information, contact Henry Kristal,
Embers Restaurants, Inc., 1664 University Avenue, St. Paul, MN 55104; 612-645-6473, Fax
645-6866. Quality
Franchise Systems, Inc. trades as Mountain Mike's Pizza at 70 locations in CA, CO, NV and
OR. The pizza restaurants occupy spaces of
3,000 sq.ft. to 3,500 sq.ft. in specialty and strip centers. Preferred anchors include supermarkets. Plans call for 60 openings in the coming 18
months. Expansion will take place nationwide. Preferred demographics include a population of
20,000 within one mile earning $48,000 as the average income. Leases running 10 years are typical. The company is franchising. For more information, contact Ted Fumia, Quality
Franchise Systems, Inc., 3841 North Freeway Boulevard/ Suite 290, Sacramento, CA 95834;
916-929-3946, Fax 929-6018. Financial
News Blockbuster
(305-832-3000) recently sold a 1,600 acre parcel of land in Broward County, FL where the
company had originally planned to construct a baseball stadium, movie studio and
entertainment facility. The land was sold to
a partnership led by Atlantic Gulf Communities for $39.5 million. Blockbuster scrapped its plans and placed the land
up for sale after it was acquired by Viacom last year. Walgreen
Co. (708-940-2680) reported that net sales for its fiscal year 1995, which ended August
31, increased 12.6% to $10.4 billion. Net
earnings for the year increased 13.8% to $320.8 million, up from $282 million last year. Prescription sales increased 19.8% over last year
and comparable store sales increased 13.8%. During
FY95, the company opened 206 stores and entered the markets of Philadelphia, PA;
Seattle/Tacoma, WA; Oklahoma City, OK; Richmond, VA; Corpus Christi, TX; Little Rock, AR
and Chattanooga, TN. For FY96, the company is
planning to open 215 units and enter the markets of Dallas, TX; Las Vegas, NV and
Portland, OR. At the end of its fiscal year,
the company was operating 2,085 stores in 31 states and is looking to operate 3,000 units
by the year 2000. PoFolks,
Inc. (606-498-2200) recently filed for Chapter 11 bankruptcy protection listing assets of
$4.1 million and debts of $15.1 million. Most
of the debt is from lease obligations for 25 recently closed restaurants. The company currently operates 90 restaurants in
16 states and is hoping to emerge from bankruptcy before the end of the year. Luby's
Cafeterias, Inc. (210-654-9000) reported that sales for its fiscal year 1995, which ended
August 31, increased seven percent to $419 million compared to $390.6 million in FY94. During the fiscal year, the company opened 11
restaurants and currently operates 186 units in 11 states. Arbor
Drugs, Inc. (810-643-9420) reported that its net income for fiscal year 1995, which ended
July 31, increased to $23.067 million from $14.078 million in FY 94. Sales for the year increased to $707.1 million, up
14.3% from FY94's sales of $618.5 million. Pharmacy
sales increased 11.6% and overall comparable store sales increased nine percent. During its fiscal year, the company opened 15
units and is planning to open as many as 20 units during FY96. The company currently operates 168 units in MI. Rent-To-Own
Tenants Planning To Expand Thorn
Americas, Inc. trades as Rent-A-Center at 1,159 locations nationwide. The stores, which offer rent-to-own appliances,
electronics and furniture, occupy spaces of 3,000 sq.ft. in strip centers. Plans call for as many as 75 openings in the
coming 18 months. Expansion will take place
nationwide. For more information, contact Don Fowler, Thorn
Americas, Inc., 8200 East Rent-A-Center Drive, Wichita, KS 67226; 316-636-7368, Fax
631-5007. Remco
America, Inc. trades as Remco at 120 locations in AZ, TX, GA, IL, CO, NC, MO, NY, MD, IN,
OH, KY, CA and UT. The stores, which offer
appliances, electronics and furniture on a rent-to-own basis, occupy spaces of 3,000
sq.ft. to 3,500 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include discount stores and
supermarkets. Plans call for at least 10
openings in the coming 18 months. Expansion
will take place in the existing markets. Preferred
demographics include a population of 60,000 within three miles earning $35,000 as the
median household income. A minimum of 35%
renter occupied housing within three miles is also required . The 27-year-old company typically signs leases
running three years with two options of three years each, prefers a white box and cites
Rent-A-Center and Aaron's as competition. For more information, contact Alan Rubenstein,
Remco America, Inc., 10333 Richmond Avenue/ Third Floor, Houston, TX 77042; 713-977-2288,
Fax 266-3412. ColorTyme,
Inc. operates 428 locations nationwide. The
stores, offering appliances, electronics and furniture on a rent-to-own basis, occupy
spaces of 3,000 sq.ft. to 3,500 sq.ft. in strip centers.
Preferred anchors include Wal*Mart. Plans
call for 50 openings in the coming 18 months. Expansion
will take place in FL, OH, TN, IN, NY, TX, LA and IL.
Preferred demographics include a population of 80,000 within four miles earning
$26,000 as the average income. The
25-year-old company, which is franchising, typically signs a three-year lease, prefers a
vanilla shell and $4 psf in a tenant allowance above a vanilla shell and cites
Rent-A-Center as competition. For more information, contact Christ Exline,
ColorTyme, Inc. c/o Exline North America, 1201 Main Street/ Suite 825, Dallas, TX 75202;
214-741-7000, Fax 741-3700. Shoe
Retailers Looking for New Sites Ray's
Shoes, Inc. trades as Ray's Shoes at five locations in WI.
The shoe stores occupy spaces of 7,000 sq.ft. to 10,000 sq.ft. in downtown store
fronts, regional malls and strip centers. Plans
call for two openings in the coming 18 months. Expansion
will take place in the existing market. For more information, contact Dan Beltz, Ray's
Shoes, Inc., 212 Main Street, Watertown, WI 53094; 414-261-2395. Rangoni
US Corp. does business as Rangoni of Florence Shoes at eight locations in CA, FL, NC, NE
and SC. The shoe stores occupy spaces of
1,800 sq.ft. to 2,000 sq.ft. in freestanding facilities and regional malls. Preferred anchors include Lord & Taylor. Plans call for two openings in the coming 18
months. Expansion will take place in the
Eastern and Southeastern regions. The
eight-year-old company typically signs a 10-year lease. For more information, contact Barton K. Crawford,
Rangoni US Corp., 7646 Girard Avenue, La Jolla, CA 92037; 619-459-0525, Fax 459-4460. Bally
operates 40 locations nationwide. The stores,
selling better lines of shoes and leather goods, occupy spaces of 2,500 sq.ft. to 3,000
sq.ft. in regional malls, outlet and specialty centers.
Growth opportunities are sought nationwide. For more information, contact Seth Hockman, Bally,
1 Bally Place, New Rochelle, NY 10801; 914-632-4444, Fax 636-9128. Eurostar,
Inc. trades as Warehouse Shoe Sale at 16 locations in CA.
The stores, selling name brand footwear for the family, occupy spaces of 6,000
sq.ft. to 7,200 sq.ft. in freestanding facilities. Preferred
anchors include Kmart, Wal*Mart and supermarkets. Plans
call for six openings in the coming 18 months. Expansion
will take place in San Jose, Richmond, Oakland, Corona, Riverside and Pomona, CA. Preferred demographics include a population of one
million within five miles. The 11-year-old
company typically signs leases running five years. For more information, contact Ben Saxton,
Eurostar, Inc., 13425 South Figueroa Street, Los Angeles, CA 90061; 310-715-9300, Fax
329-0321. Payless
Shoe Source operates 4,586 locations nationwide. The
stores, selling shoes for the family at off-price points, occupy spaces of 3,000 sq.ft. to
4,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip
centers. Growth opportunities are sought
nationwide. For more information, contact Pam Johnson, Payless
Shoe Source, 3231 East 6th Street, Topeka, KS 66607; 913-233-5171, Fax 295-6815. Nike,
Inc. trades as Nike Town at four locations in CA, GA, IL and OR. The stores, selling Nike athletic shoes and
apparel, occupy spaces of 20,000 sq.ft. to 60,000 sq.ft. in freestanding facilities. Plans call for 10 openings in the coming 18
months. Expansion will take place nationwide
in top US markets. For more information, contact Tom Brockmiller,
Nike, Inc., 1 Bowerman Drive, Beaverton, OR 97005; 503-641-6453, Fax 671-6366. Prague
Shoe Company, Inc. does business as Prague's Family Shoes at 33 locations in CT, MA, NY
and RI. The shoe stores occupy spaces of
2,500 sq.ft. in regional malls and strip centers. Plans
call for eight openings in the coming 18 months. Expansion
will take place in CT, MA and NY. For more information, contact Michael Flanigan,
Prague Shoe Company, Inc., 41 Sequin Drive, Glastonbury, CT 06033; 203-652-7463, Fax
652-7470. Who's
Opening and Where... Whole
Foods Market (713-661-7753) plans to open a 35,000 sq.ft. Bread & Circus natural food
market in Georgetown, MD and a 36,000 sq.ft. unit in Arlington, VA during the winter. A third store is expected to open in Vienna, VA
next Fall. America's
Favorite Chicken (404-391-9500) plans to open 15 Popeyes Chicken & Biscuits
restaurants in Egypt, six units in Lebanon, six units in the United Arab Emirates, four
units in Syria and four units in Gaza and the West Bank.
The company plans to open the restaurants through various franchisors beginning
next year. Big
Dog Sportswear (310-792-6272), which offers adult clothing, recently opened a children's
wear concept called Little Big Dog at International Designer Outlets in Orlando, FL. The company also recently opened three Big
Dog/Little Big Dog units, which sell clothing for both adults and children, at
Silverthorne Factory Stores in Silverthorne, CO; Folsom Factory Outlets in Folsom, CA and
Columbia George Factory Stores in Troutdale, OR. A
fourth combination unit is planned for Arizona Factory Shops in New River, AZ. McDonald's
(708-575-3000) recently opened its first restaurant in Jamaica in Montego Bay. Jamaica marks the 84th country that McDonald's has
entered. Nordstrom's
(206-628-2111) is planning to open stores in West Farms, CT and Providence, RI during
1997. Kohl's
Department Store (414-783-5800) recently opened stores in Mentor, Macedonia, Parma, Canton
and Youngstown, OH as well as Maple Grove, MN. The
openings give the company 128 stores throughout the Midwestern states. Kenny
Rogers Roasters (305-938-0330) plans to open restaurants in the United Kingdom through the
Berjaya Group, a franchisee of the company. The
first two restaurants are planned for Manchester and Liverpool, England with plans to open
as many as 50 units within five years. The UK
restaurants will feature hosts at the door, table service and beer and wine. Borders
(313-995-9702) recently opened a Borders Books and Music store in Dayton, OH. Chik-fil-A
International (404-765-8038) plans to open 54 restaurants in 10 African countries during
the next seven years through The DanCor Group, a licensee of the company. The first restaurant is expected to open in
Durban, South Africa during summer 1996. Chik-fil-A
currently operates 650 restaurants throughout North America. General
Nutrition, Inc. (412-288-4621) recently opened a General Nutrition Center at Century
Square Shopping Mall in Singapore, the company's 100th international market. Flagstar
Co.'s (803-597-8000) El Pollo Loco division recently entered into a dual branding pact
with Fosters Freeze frozen dessert chain. Under
the agreement, the 210-unit El Pollo Loco chain will add items from Fosters Freeze menu at
its restaurants and the 200-unit Fosters Freeze chain will add the full El Pollo Loco menu
at two of its restaurants. Pizza
Inn (214-701-9955) plans to open a unit at Dallas-Fort Worth International Airport before
the end of the year and also plans to expand its Pizza Inn Express concept by 22 units. Act
III Theaters, Inc. (503-221-0213) plans to open an 11-screen theater at Fiesta Trails
Shopping Center in San Antonio, TX. The
National Association for Stock Car Auto Racing (NASCAR) (904-253-0611) recently entered
into an exclusive licensing agreement with Connor Management to own, operate and manage a
nationwide chain of NASCAR-themed, interactive restaurants called NASCAR Cafe. The plan call for 10 NASCAR Cafes to be opened
nationwide in the coming five years. The
first unit is expected to open summer 1996 in Myrtle Beach, SC and a second is expected to
open in Orlando, FL in early 1998. In
addition to food, the cafes will include a surround-sound video board, electronic and
multi-media games, artifacts, collectibles and actual NASCAR stock cars and trucks. The cafes will also offer officially licensed
NASCAR products. China
Jump, Inc. (908-922-7722) recently opened a 2,700 sq.ft. China Jump Chinese fast-food
restaurant at Airport Square Mall in Montgomeryville, PA.
The company currently operates four units in NJ and PA. Staples
(508-370-8967) recently opened units in Ann Arbor and Chesterfield Township, MI. The company is planning to open two more stores in
MI before the end of the year. Mergers
& Acquisitions Video
Update (612-222-0006) recently acquired the two-unit video store chain of Mega Movies,
Inc. in Anchorage, AK. The company also
recently acquired the six-unit video store chain of Talerico Enterprises, Inc. in Phoenix,
AZ. The company currently owns and franchises
188 video stores in AK, AZ, IN, IL, MN, MO, NV, NH, PA, SC, VA, WA, WI and Canada. Brothers
Gourmet Coffees (407-995-2600) recently signed a letter of intent to sell its 28 Brothers
Gourmet Coffee Bars to Hannibal's Coffee Company. The
agreement is expected to close next month. Regis
Corporation (612-947-7000) recently acquired nine beauty salons in KS from WWM, Inc., and
four beauty salons in GA, IA and TX. The
company currently operates 1,654 salons trading as Regis Hairstylists, MasterCuts, Trade
Secret and International. Sears,
Roebuck and Co. (708-286-2500) recently acquired 84 stores from Nationwise Automotive,
Inc. The recently acquired stores will be
renamed Western Auto Parts America and will join the company's Western Auto division. Sears acquired the stores after the U.S.
Bankruptcy Court accepted the company's bid of $17.6 million for 84 stores over AutoZone,
Inc.'s bid of $14 million for 61 stores. Store
Closings Mercantile
Stores Co., Inc. (513-881-8000) recently closed a Joslins department store in downtown
Denver, CO. The store operated in downtown
Denver for the past 108 years. Mass
Marketing, Inc. (210-344-1960) recently closed two Mega Warehouse grocery stores in San
Antonio, TX. The company's third San Antonio
unit will remain open. PriceCostco,
Inc. (206-828-8100) recently closed its Price Club store in Concord, CA. The store, which opened in 1989, had not been
profitable for the company. Homeland,
Inc. (405-879-6600) recently closed its 49,919 sq.ft. Homeland Supermarket at Market Place
Shopping Center in Edmond, OK. Brinker
International, Inc. (214-770-9373) recently closed Grady's American Grill restaurants in
Clearwater and Tampa, FL and two in TX. The
company also recently closed two Spaghetti's Italian Kitchen restaurants in Orlando, FL
and two in Dallas, TX. Lead
Sheet Sox
Market, Inc. dba
Sox Market Mike
Adler PO Box
888 Manchester,
VT 05254 802-362-3721,
Fax 362-5344 Accessories The
seven-unit chain operates locations in ME, NY, PA and VT.
The stores, selling socks and related items at discount price-points, occupy spaces
of 1,000 sq.ft. to 1,500 sq.ft. in outlet and value centers. Plans call for three openings in the coming 18
months. Expansion will take place in NH, NJ
and PA. Dalmys
Canada Ltd. dba
Cactus, Dalmys, Gazebo, Antels,
Dalmys L'Entretop Fred
Hutchinson 9475
Meilluer Montreal,
Quebec, Canada H2N 2C6 514-384-1030,
Ext. 3060, Fax 384-4165 Apparel The
180-unit chain operates locations throughout Canada.
The stores, selling European designer apparel for women, occupy spaces of 2,700
sq.ft. to 2,800 sq.ft. in regional malls. Plans
call for the opening of five Dalmys and Antels units in the coming 18 months. Expansion will take place in Ontario and Quebec,
Canada. Mieka Ken
Richter 8285
Jericho Turnpike Woodbury,
NY 11791 516-367-8755,
Fax 692-5937 Apparel The
three-unit chain operates locations in FL and NY. The
stores, selling bridge to designer sports and evening wear, occupy spaces of 1,200 sq.ft.
to 1,600 sq.ft. in specialty centers. Preferred
anchors include Saks and Neiman Marcus. Plans
call for one opening in the coming 18 months. Expansion
will take place in AZ, CA, NJ or NV. Preferred
demographics includes a population of 50,000 within 20 miles earning $75,000 as the
average income. The 12-year-old company
typically signs a 10-year lease, prefers tenant improvements and cites Cache and Exit as
competition. Prato
Men's Wear Outlets Mohamed
Ashmawy 28
West 34th Street New
York, NY 10001 212-629-4730,
Fax 465-9312 Apparel The
eight-unit chain operates locations in NJ and NY. The
stores, selling men's clothing and accessories, occupy spaces of 3,000 sq.ft. to 4,000
sq.ft. in downtown store fronts, regional malls, outlet, power and strip centers. Preferred anchors include Kmart, Wal*Mart and
supermarkets. Plans call for as many as two
openings in the coming 18 months. Expansion
will take place in the existing markets. The
21-year-old company typically signs leases running 10 to 15 years. K&S
News John
McPherson 1213
Silas Creek Parkway Winston-Salem,
NC 27127 910-724-0803,
Fax 724-2700 Books The
10-unit chain operates locations in NC. The
stores, selling books and magazines, occupy spaces of 2,200 sq.ft. in strip centers. Growth opportunities are sought in the existing
market. Southeast
Petroleum Corp. dba
Speedy Lube John
Sarritt PO Box
1385 Waukesha,
WI 53187-1385 414-363-3060,
Fax 363-3349 Automotive The
24-unit chain operates locations in IL, IN and WI. The
automotive service centers occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. in power and
strip centers. Preferred anchors include
Wal*Mart. Plans call for seven openings in
the coming 18 months. Expansion will take
place in IL and WI. Preferred demographics
include a population of 30,000 within two miles earning $35,000 as the average income. The 13-year-old company typically signs a 10-year
lease with two 10-year options and cites Jiffy Lube as competition. 50-Off
Stores, Inc. dba
50-Off Stores George
Olson 8750
Tesoro Drive San
Antonio, TX 78212 210-805-9300,
Fax 805-4953 Discount The
102-unit chain operates locations in AL, FL, GA, KY, LA, NC, OK, TN, TX, NM and SC. The stores, selling apparel, housewares, gifts and
domestics at up to 50% off retail prices, occupy spaces of 25,000 sq.ft. in regional
malls, power and strip centers. Plans call
for 10 openings during 1995. Expansion will
take place in AL, FL, GA, KY, LA, NC, OK, TN, TX, NM and SC. Alrenco,
Inc. dba
Alrenco Bud
Holladay 1736
East Main Street New
Albany, IN 47150 812-949-3370,
Fax 948-2579 Electronics The
67-unit chain operates locations in AL, AZ, FL, IN, KY, LA, MS, OH, TN, WV, MD and VA. The stores, selling appliances, electronics,
computers, home furnishings and jewelry, occupy spaces of 3,000 sq.ft. to 3,500 sq.ft. in
neighborhood strip centers. Plans call for
as many as 25 openings in the coming 18 months. Expansion
will take place in the existing markets. In
addition to opening new stores, the company plans to expand through acquisitions. Tandy
Corporation dba
Radio Shack, Computer City, Incredible
Universe John
Roach 1800
One Tandy Center Fort
Worth, TX 76102 817-390-3011,
Fax 878-6508 Electronics The
company operates more than 6,500 Radio Shack stores, 65 Computer City stores and 11
Incredible Universe stores nationwide. The
stores, selling electronics, computers and gadgets occupy spaces of 2,500 sq.ft. to
185,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip
centers. Plans call for the opening of 100
Radio Shack locations, as many as 40 Computer City locations and six Incredible Universe
stores within the coming 18 months. Expansion
will take place nationwide. Wood
You Distributors Charles
Blankenship 2320
North Liberty Street Jacksonville,
FL 32206 904-354-0300,
Fax 354-6983 Furniture The
30-unit chain operates locations in AL, FL, GA, MS, SC and TN. The stores, selling unfinished furniture, occupy
spaces of 5,000 sq.ft. in freestanding facilities and strip centers. Plans call for six openings in the coming 18
months. Expansion will take place in the
existing markets as well as NC. Preferred
demographics include a population of 100,000 within 10 miles earning $30,000 as the
average income. The 18-year-old company
typically signs a 10-year lease and prefers a vanilla shell. Hughes
Lumber Co. Tom
Hughes PO Box
2220 Tulsa,
OK 74101 918-622-8080,
Fax 622-3842 Home
Center The
10-unit chain operates locations in AR, KS and OK. The
lumber and building supply stores occupy freestanding facilities on a land area of four
acres. Plans call for two openings within the
coming 18 months. Expansion will take place
within the existing markets. The company
prefers to own its locations. Master
Glaizer Karate Neil
Goldstein or Jill Gordon c/o
The Goldstein Group 2100
Route 208 Fairlawn,
NJ 07410 201-703-9700,
Fax 703-9678 Karate
School The
seven-unit chain operates locations NJ, NY and PA. The
karate schools occupy spaces of 3,000 sq.ft. to 8,000 sq.ft. in freestanding facilities,
power and strip centers. Preferred anchors
include discount tenants, movie theaters and supermarkets.
Plans call for two openings in the coming 18 months.
Expansion will take place within the existing markets. Preferred demographics include a population of
150,000 within five miles earning $35,000 as the average income. Leases running 10 years with options are typical. General
Automatic dba
Mitchell Leather And Luggage Mary
Lampman 7700
120th Avenue Kenosha,
WI 53142 414-857-7675,
Fax 272-0564 Luggage The
two-unit chain operates locations in WI. The
stores, selling leather goods, luggage, cases and purses at discount price-points, occupy
spaces of 2,000 sq.ft. in outlet and value centers. Growth
opportunities are sought in the existing market. Fletcher
Music Centers, Inc. dba
Fletcher Music Centers Robert
Hager 3966
Airway Circle Clearwater,
FL 34622-4206 813-571-1088,
Fax 572-7769 Music The
27-unit chain operates locations in AZ, FL and NC. The
music stores, specializing in organs, occupy spaces of 1,900 sq.ft. to 3,100 sq.ft. in
regional malls. Plans call for seven openings
in the coming 18 months. Expansion will take
place nationwide. Pearle
Vision, Inc. Suk
Singh 2534
Royal Lane Dallas,
TX 76229 214-277-5000,
Fax 277-5966 Optical The
760-unit chain operates locations nationwide. The
stores, offering eye examinations and eyeglasses, occupy spaces of 2,500 sq.ft. to 3,000
sq.ft. in power centers. Plans call for 20
corporate and 25 franchised openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of
80,000 within five miles earning $50,000 as the average income. The 35-year-old company typically signs a 10-year
lease and cites Lenscrafters and Eyemasters as competition. Sunglass
Hut International Chuck
Mineo 255
Alhambra Circle/ Penthouse Miami,
FL 33134 305-461-6212,
Fax 461-6283 Optical The
1,000-unit chain operates locations nationwide, excluding MT, ND, SD and WY. The stores, selling premium quality sunglasses,
occupy spaces of 600 sq.ft. to 1,000 sq.ft. in addition to kiosk locations in downtown
store fronts, regional malls, outlet, specialty and strip centers. Preferred anchors include Gap, Eddie Bauer, book
and music superstores, theaters and restaurants. Growth
opportunities are sought nationwide. Leases
running five years are typical. Cord
Camera Centers, Inc. dba 55
Minute Photo Steven
L. Cordle 745
Harrison Drive Columbus,
OH 43204 614-276-0033,
Ext. 215, Fax 276-7686 Photography The
24-unit chain operates locations in OH and IN. The
stores, offering photography supplies and film processing, occupy spaces of 1,800 sq.ft.
in freestanding facilities. Plans call for
three openings in the coming 18 months. Expansion
will take place in OH, IN and KY. Baker
& Baker Employment Service Jerri
Johnson PO Box
364 Athens,
TN 37303 615-745-1731,
Fax 745-0129 Service The
one-unit chain operates a location in TN. The
company, offering personnel services, occupies a 2,000 sq.ft. space in a strip center. Plans call for one opening in the coming 18
months. Expansion will take place within the
existing market. Shoe
Fixers Franchise Systems, Inc. dba
Shoe Fixers Sal
Pirrotta, Sr. 3550
Three Mile Road Grand
Rapids, MI 49544 616-453-4754,
Fax 453-4550 Service The
34-unit chain operates locations in MI, OH, IL, IA, VA, WI, MO, SC, NC and NY. The stores, offering instant shoe repair services,
occupy spaces of 300 sq.ft. to 500 sq.ft. in downtown store fronts and regional malls. Growth opportunities are sought nationwide. Cal's
Best, Inc. dba
Cal Stores Richard
Davila 972
Broadway Chula
Vista, CA 91911 619-476-1010,
Fax 476-1099 Sporting
Goods The
10-unit chain operates locations in CA. The
stores, selling sporting goods, athletic wear and athletic footwear, occupy spaces of
9,000 sq.ft. to 25,000 sq.ft. in freestanding facilities.
Plans call for two openings in the coming 18 months.
Expansion will take place in the Western region. A&P
Tea Co. dba
Super Fresh Richard
Dugan 3301
Annapolis Road Baltimore,
MD 21230 410-354-6497,
Fax 354-6191 Supermarket The
company operates more than 1,100 locations east of the Mississippi River. The supermarkets occupy spaces of 45,000 sq.ft. to
58,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power and
strip centers. Preferred co-tenants include
soft goods retailers. Plans call for as many
as 15 openings in the coming 18 months. Expansion
will take place in DE, MD and VA. Mazel
L.P. dba
Just Closeouts Sruly
Wolf 31000
Aurora Road Solon,
OH 44139 216-349-5460,
Fax 349-5467 Variety The
11-unit chain operates locations in OH. The
stores, selling soft goods, health and beauty aids and electronics and toys, occupy spaces
of 10,000 sq.ft. in regional malls and strip centers.
Growth opportunities are sought in the existing market. National
Dollar Stores, Ltd. dba
National Dollar Stores Frank
Mancini 929
Market Street San
Francisco, CA 94103 415-882-9888,
Fax 882-7756 Department
Store The
38-unit chain operates locations in AZ, CA, HI and TX.
The stores, selling family apparel and housewares, occupy spaces of 8,000 sq.ft. to
10,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. The company is seeking growth opportunities in
undecided markets. Buyers
& Sellers of Commercial Properties Simon
Property Group recently acquired the remaining ownership interest of East Towne Mall in
Knoxville, TN for $18.5 million. Prior to the
acquisition, the company owned 45% of the center. The
978,000 sq.ft. project is anchored by Dillard's, JC Penney, Proffitts, Sears and Service
Merchandise. For more information, contact Shelly Doran at
(317-685-7330). The
Schreiber Company is in the market to purchase neighborhood or community
supermarket-anchored shopping centers located east of the Mississippi River. For more information, contact Marvin Schreiber at
(412-963-1000), Fax (963-0520). Pyramid
Brokerage Co., Inc. has the listing to sell a parcel of land at Lakeshore Drive Inn Plaza
in Syracuse, NY. The site has approvals to
construct a retail building up to 70,000 sq.ft. The
site is also offered on a build-to-suit basis. The
project also has 26,000 sq.ft. of existing retail space and a pad site may be added. For more information, contact Frank J. Scuderi at
(315-445-8528), Fax (445-2074). New
Plan Realty Trust recently purchased Tinley Park Plaza in Tinley Park, IL. The 283,000 sq.ft. 94% occupied project is
anchored by TJ Maxx, Builder's Square II and Walt's Finer Foods. For more information, contact Ron Frankel at
(212-869-3000). Coldwell
Banker Schmidt Realtors has the listing to sell 6.8 acres of land located in front of
Midland Mall in Midland, MI. In addition to
the mall, Toys 'R Us and Burger King are located near the site. The land is also offered on a build-to-suit basis
or for lease. For more information, contact Michael Orden at
(616-822-2350), Fax (922-2374). United
Municipal Leasing Corporation is in the market to acquire properties leased to Wal*Mart,
Sam's Wholesale Club and Circuit City. For more information, contact Arnold Kramer at
(708-323-0977, Ext. 88), Fax (323-1019). Snyder
Sheets Stewart & Goseland has the listing to sell a NNN leased freestanding 6,500
sq.ft. Blockbuster Video store in Lenexa, KS. The
asking price is $953,000 and 75% financing is available.
The company has the listing to sell a NNN leased freestanding 86,000 sq.ft. Kmart
in Billings, MT. The asking price is $4.25
million and a $2,530,614 loan at nine percent must be assumed. The company also has the listing to sell a NNN
leased freestanding 6,500 sq.ft. Michael's Craft and Hobby store in Wichita, KS. The tenant has a new 10-year lease with
escalations and is located adjacent to Kmart. The
asking price is $1.45 million and financing is available. For more information, contact Rod M. Stewart at
(316-683-3663), Fax (683-3238). Zyndorf/Serchuk,
Inc. has the listing to sell a 40 acre parcel of land in Bowling Green, OH. The site, which is currently zoned agricultural,
is located east of a planned 202,000 sq.ft. Meijer Superstore. The asking price is $800,000. For more information, contact Steve Serchuk at
(419-249-7070), Fax (255-2439). Agentis
has the listing to sell Southside Plaza in Allentown, PA.
The 73,960 sq.ft. 94% leased project is anchored by a supermarket. The asking price is $5.3 million. For more information, contact Robert E. Price at
(610-691-5900), Fax (694-9319). Quest
Realty, Inc. has the listing to sell a 28 acre site zoned and approved for 200,000 sq.ft.
of retail development in the Sarasota/Bradenton area of FL.
The company also represents clients in the market to acquire shopping centers and
triple net leases. For more information, contact Sydney Y. Cole at
(813-378-0608), Fax (378-5368). Castle
Partners, Inc. is in the market to acquire stable income producing properties and
properties that offer the ability to create value through renovation, additional leasing
and/or additional development. The company
will consider regional, anchored and neighborhood strip centers as well as freestanding,
single tenant and net leased properties. For more information, contact Andrew Hirschberg at
(908-719-0019), Fax (719-2888). SCS
Investments has the listing to sell 327 acres of land in San Angelo, TX. The site is located near a Wal*Mart Supercenter
and a Loew's store. The asking price is $1.75
million. For more information, contact Scott C. Steger at
(915-944-7112). Retailers
Keeping with The Times Tandy Corp. (817-390 |