Issue 40 for the week of November 10, 1995

The Dealmakers Issue Number 40 for the week of November 10, 1995.

My Way by Ted Kraus

A very astute mall developer summed up the recent Dealmaking show in Kansas City, MO with the following statement: "If I owned a shopping center with traffic this low, I'd give it back to the lender." Unfortunately, the show must have an environmental problem, since the lender won't take it back.

Now in fairness, if I had to do it over again, I'd still go. The ICSC contends there were 3,700 dealmakers present; I would have bet on 3,200, but whatever the number, it was still the second largest gathering of shopping center owners, investors and brokers of the year. Did it pay? Candidly, I don't know and won't know for another six months, but while I didn't get the return on my investment at Kansas City like I do at either a "local" event or Vegas, I "think" (or pray) it will work out. Some people blamed the low attendance on the fact that it was held in Kansas City, which, while not my first choice, is not the primary reason attendance was low. It was a combination of too many local events and a slowing economy. Do I feel that if we held it in Orlando, FL instead, say on a Monday and Tuesday, would there be more attendees? Yes I do, but again, that is not the real problem (but better locations for the event couldn't hurt). John Riordan (President of the ICSC) sent me (and every other exhibitor at the show) a letter saying he was sorry he couldn't make it to Kansas City, announced the promotion of Marvin Morrison to head up Research, Education and International Activities (congratulations Marv) and that Ellis Rowland has taken over the responsibilities of the national and regional leasing and dealmaking events. I wish Ellis well and hope he can continue to do the excellent job that Marv did in the past. While John did not mention any new position for Phyllis Peterson, I want to "thank her" for all the hard work I see her doing at the events and putting up with me when I'm on one of my rampages. Contrary to some people's belief, I think extremely well of the ICSC's staff.

Anyway, John went on briefly to tell the history of the National DealMaking show, how it once was part of the University of Shopping Centers (and I might add, extremely well attended) and how it moved from suites to the current mall layout (smart move). He then ended the letter by saying:

"Questions about the meetings are several. Should it move around? Is it maybe one meeting too many given the role now played by regional deal makings? Or, should it be strengthened and the regional programs cut back? But opinions and views are important and we'd like yours."

Great questions, I'm glad he asked 'em. Also included in his letter was a questionnaire for exhibitors to fill out on our opinion of the show. However, none of the questions in the questionnaire asked if we should "cut back" regional shows, eliminate the National DealMaking or move the event around. It seems a shame to waste John's great questions.

If the ICSC really wants our feedback, why didn't they ask John's questions. Sounds simple to me. Do you want the National Show strengthened by eliminating some regional shows or do you want to eliminate the National Show? John knows the right questions, why weren't they asked? Of course, a compromise might be combining the National show with the University again and perhaps adding the marketing event as well; make it into one gigantic "happening."

Oh well, I keep writing about this every year and nothing ever changes, but it gives me something to write about. However, a change I noticed at Kansas City in my conversations this year over last October (and also in Vegas) was, whenever I was talking to a developer in the past, they seemed to all be building either a Kmart, Wal*Mart, Sam's, Home Depot or Target center, with Best Buys, Borders, Barnes & Noble and Circuit City running a close "second" when it came to mini-anchors.

At Kansas City, I heard the name Target a lot; Wal*Mart was still active, but not quite as in the past, and there was "quiet" talk about the rest, with Kmart developers expressing concern on how they were going to obtain financing. T.J. Maxx and Marshalls developers were trying to reassure themselves that when TJX takes over Marshalls it will not dramatically affect their expansion plans (yeah, right). Almost everyone was involved in a pool on what apparel retailer would go "11" next and one developer contended all his tenants had to provide a pre-approved bankruptcy petition confirming their space in his center before he'd sign a lease, even if they're not bankrupt (yet).

Another trend I noticed is financially healthy retailers going to their landlords and asking for a rent reduction for their poorer performing stores. Now I tend to be pro-tenant (also pro-choice), but I have problems with that. I'm one of the first to provide a rent reduction to a bankrupt tenant or one financially ailing, but I don't see these "healthy" tenants offering to re-negotiate their lease on their better stores. Somehow I can't imagine a tenant going to a landlord and saying: "My store in your center is doing so well that I feel we should increase our rent from $12 a square foot to $22." In 25 years in this business, no retailer has ever said that to me and I doubt one ever will.

On the topic of trends, I noticed that there are more broker networks forming everyday (less business but more networks). It used to be New American and Chain Links were the only two, but at the Kansas City show numerous brokers came by our booth to either tell us they had either joined a new network or were in the process of forming a new one. Now, to some degree, I belive this concept has merit, but the idea is now becoming as common as a Century 21 franchise (we'll know the concept has gone too far when they start wearing the same color blazer with an emblem attached). I don't mean this as a knock, but I think the benefits are becoming diluted. What we need is a developers/management companies network. Anyone interested, let me know. Better yet, a retailers network. You call Wal*Mart up with a location, if they can't handle it, they get you Kmart.

Several developers hosted a suite instead of a booth because they wanted to save money and to quote one, "all the traffic we had in our suite were real deal makers and we didn't waste our time on tire kickers." Bull, what good is just meeting with scheduled appointments. If our industry is to grow, we constantly need fresh meat and that is what a booth or walking the floor does for us. The companies with suites were not out there talking to people/companies they never met before and therefore they lost opportunities. That's being penny wise and dollar foolish. You're better off with a small booth not elaborately displayed than a suite.

Oh, I have to thank Epstein's Bagels for providing the only decent food available at the entire show. The food service at this event was the worst I can remember. I'm sure it's a problem the ICSC can correct before next year's event, so it's no big deal. While I consider the people of Kansas City to be extremely friendly, their convention center doesn't appear capable of handling a decent size show or providing decent (forget quality) food.

Talking about "thanks," I also have to give credit to Modell's Sporting Goods on their "Satisfaction Guaranteed" program. Ann and I mentioned to Michael Modell that we had purchased numerous sweat shirts from one of his stores and while the price and quality were good, they ran in the washer. Today we received a "care package" from Michael with a gift certificate and a note saying, "For future reference, separate colors from whites when washing." While I'm sure that dealing with a principal of a firm "helps," I've heard many customers compliment the company in the past, now I know why. It's little things like this that make one retailer survive while others around them are failing.

Department Stores Looking for Sites Nationwide

The Broadway Stores, Inc. trades as The Broadway-Southern CA at 41 locations in CA. The department stores occupy spaces of 150,000 sq.ft. to 180,000 sq.ft. in regional malls. Growth opportunities are sought in the existing market.

For more information, contact John Healy, The Broadway Stores, Inc., 3880 North Mission Road, Los Angeles, CA 90031; 213-227-2000, Fax 227-2774.

Carson Pirie Scott & Co. does business as Carson Pirie Scott, P.A. Bergner, Boston Stores and Bergner's at 55 locations in IL, IN, MN and WI. The department stores occupy spaces of at least 125,000 sq.ft. in regional malls. Growth opportunities are sought in the Midwestern region.

For more information, contact Paul Ruby, Carson Pirie Scott & Co., 331 West Wisconsin Avenue, Milwaukee, WI 53203; 414-347-5306, Fax 276-9108.

Emporium, Inc. trades as Emporium at 30 locations in CA, ID, OR and WA. The department stores, selling family apparel, cosmetics, domestics and shoes, occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Joe Sneddon, Emporium, Inc., 86776 McVay Highway, Eugene, OR 97405; 503-746-9611, Fax 747-7891.

Value City Department Stores trades as Value City at 80 locations in IL, IN, KY, MD, MI, NJ, OH, PA, VA and WV. The department stores occupy spaces of 75,000 sq.ft. to 100,000 sq.ft. in freestanding facilities. Plans call for as many as eight openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Dick Wood, Value City Department Stores, 3241 Westerville Road, Columbus, OH 43224; 614-471-4722, Fax 478-3434.

Strawbridge & Clothier trades as Clover at 27 locations in DE, NJ and PA. The discount department stores occupy spaces of 80,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for as many as three openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Warren White, Strawbridge & Clothier, 801 Market Street, Philadelphia, PA 19107; 215-629-7100, Fax 629-7337.

Who's Opening and Where...

Cost Plus World Market (805-492-6191) recently opened an 18,300 sq.ft. housewares and home furnishings store in Plano, TX. Two more stores for the Dallas-Fort Worth, TX area are planned.

Farmer Jack Supermarkets (313-270-1000) recently opened a 60,000 sq.ft. store in Dearborn, MI. The unit is the largest in the chain.

The Limited, Inc. (614-479-7000) plans to open 15,000 sq.ft. Henri Bendel women's clothing stores at Garden State Plaza in Paramus, NJ and Somerset Collection North in Troy, MI during 1996. The company is also planning to open as many as 50 Henri Bendel units in the coming five years.

The Gap (415-952-4400) plans to open an Old Navy Clothing Co. store at Cherry Hills Marketplace in Littleton, CO during early 1996. The company also recently opened a 16,000 sq.ft. Old Navy Clothing Co. unit at Whittwood Mall in Whittier, CA.

AMC Entertainment, Inc. (816-221-4000) plans to build a 30-screen, 6,000 seat movie theater in Plano, TX that will open during 1996. As part of the complex, the company also plans to develop a 200,000 sq.ft. shopping center as a phase II project.

Safeway (510-891-3000) plans to build a 42,000 sq.ft. supermarket/drug store in Stayton, OR and a 48,000 sq.ft. supermarket/drug store in Keizer, OR. Both stores are expected to open during 1996.

Drug Emporium (614-548-7080) recently entered into a licensing agreement in which Farm Fresh will operate 15,000 sq.ft. Drug Emporium departments inside two of its 80,000 sq.ft. Rack & Sack supermarkets in VA. Farm Fresh currently operates 11 Rack & Sack supermarkets in VA.

Hoyts Cinemas Corporation (617-267-2700) plans to open 10-screen movie theaters in Augusta and Brunswick, ME next month. The company has also signed deals to open movie theaters in Frederick, MD; Clay, NY; Rochester, NY and Poughkeepsie, NY. In addition, the company is planning to open 100 screens by Summer 1996 and 150 additional screens during 1997.

La Madeleine French Bakery & Cafe (214-521-0182) recently opened a 4,255 sq.ft. restaurant in Atlanta, GA. The company currently operates 30 units in TX, LA, IL, GA and Washington, D.C.

HomePlace (216-498-0555) plans to open a 50,000 sq.ft. houseware and linen store at Sunset Hills Plaza in Sunset Hills, MO this month. The company, which currently operates 20 units, is planning to open three more units in the St. Louis, MO area.

Wal*Mart (501-273-4000) recently opened a 100,000 sq.ft. store at Dorchester Square Shopping Center in Cambridge, MD. The company is also planning to open a 133,000 sq.ft. unit at Point Fosdick Center in Gig Harbor, WA during 1997.

Gart Sports (303-861-1122) is planning to open two 45,000 sq.ft. sporting goods stores in Salt Lake City, UT and 45,000 sq.ft. units in Colorado Springs, CO and Missoula, MT during 1996. Recently, the company opened stores in Albuquerque, NM; Colorado Springs and Denver, CO; and Boise, ID. The company currently operates 60 stores.

Blockbuster Entertainment Group (305-832-3000) plans to open 700 Blockbuster Video stores worldwide during 1996, including 400 in the U.S. The company is also planning to increase the number of products the stores carry by including books and magazines, music albums and CD-ROM software. The company currently operates 3,000 units nationwide.

Financial News...

Handy Andy Home Improvement Centers, Inc. (708-517-4000) was recently forced into involuntary bankruptcy proceedings by its creditors. The company currently operates 74 units.

Weis Markets (717-286-4571) reported that its third quarter sales increased 7.3% to $404.578 million compared to $377.197 million during the same period last year. Net earnings for the quarter increased 2.4% to $19.189 million from $18.733 million. During the quarter, the company opened three supermarkets and is planning to open three units during its fourth quarter and 15 units during 1996. The company currently operates 150 supermarkets in PA, MD, NJ, NY, VA and WV.

Office Depot, Inc. (407-265-4258) reported that sales during its third quarter increased 28% to $1.337 billion compared to $1.044 billion during the same period last year. Operating profit increased 32% to $66.761 million compared to $50.419 million and net earnings increased 34% to $36.842 million from $27.411 million. Comparable store sales increased 17% for the quarter. During the quarter, the company opened 13 units and currently operates 463 stores throughout North America as well as two Images units, which offer graphic design, printing, copying and shipping services, in FL.

The Kroger Co. (513-762-4000) reported that its third quarter earnings increased to $62.7 million from $51.2 million during the same period last year. Total sales increased to $6.96 billion from $6.65 billion last year and comparable store sales increased 1.4%. During the quarter, the company opened and/or expanded 18 food stores.

Sonic Corp. (405-280-7654) reported that its total revenues for its fiscal year, ended August 31, increased 24.1% to $123.8 million compared to $99.7 million last year. Net income increased to $12.5 million from $7.6 million. Comparable store sales increased 3.6% systemwide. During its fiscal year, the company opened 95 drive-in restaurants and is planning to open 125 units during fiscal 1996. Currently, the company operates 1,470 restaurants in 27 states.

DIY Home Warehouse, Inc. (216-328-5100) reported that its net sales during the third quarter increased 27% to $47.3 million compared to $37.2 million during the same period last year. Comparable store sales decreased six percent.

Outback Steakhouse, Inc. (813-282-1225) reported that its third quarter net income increased to $13.114 million compared to $9.63 million during the same period last year. Revenues for the quarter increased 38% to $160.173 million from $115.815 million and system-wide sales increased 48% to $21.248 million. During the quarter, the company opened 21 Outback Steakhouses and four Carrabba's Italian Grills and is planning to open as many as 22 Outback Steakhouses and seven Carrabba's during the fourth quarter. The company currently operates 280 Outback Steakhouses and 16 Carrabba's Italian Grill restaurants in 33 states.

Sears, Roebuck and Co. (708-286-2500) reported that its third quarter revenues increased 6.2% to $8.42 billion from $7.93 billion during the same period last year. Income from the company's domestic operations during the quarter increased 15.9% to $235 million from $202 million and domestic operations revenues during the quarter increased 7.9% to $7.63 billion from $7.07 billion. Comparable store sales increased 5.4%. The company current operates more than 800 mall-based department stores and 1,200 off-the-mall stores.

Gander Mountain, Inc. (414-862-2344) reported that during the first quarter of its fiscal year, the company's net sales increased 12% to $96.3 million from $86 million during the same period last year. Retail sales during the quarter increased 83% to $36.8 million from $20.1 million. The company reported a net loss of $1.1 million compared to net income of $1.7 million last year. Comparable store sales decreased one percent during the quarter. The company currently operates 17 outdoor sporting goods stores.

McDonald's Corp. (708-575-3000) reported that its third quarter systemwide sales increased 13% to $7.866 billion compared to $6.944 billion during the same period last year. Total revenues increased 16% to $2.8 billion from $2.22 billion last year and net income increased 14% to $400.1 million compared to $349.8 million. During the quarter, the company opened 1,453 restaurants and operates a total of 17,403 units.

Tandy Corporation (817-390-3011) reported that its third quarter consolidated sales increased to $1.339 billion, a 20% increase over last year's results of $1.119 billion. The company currently operates 6,800 Radio Shack stores, 86 Computer City stores and 14 Incredible Universe stores.

Stein Mart, Inc. (904-346-1500) reported that its net income for the third quarter decreased to $1.6 million from $1.9 million during the same period last year. Net sales for the quarter increased 19.3% to $108.2 million from $90.7 million last year and comparable store sales fell 0.1%. During the quarter, the company opened three stores and is planning to open eight units during the fourth quarter. The company currently operates 94 apparel stores.

OfficeMax, Inc. (216-295-6411) reported that sales during its third quarter increased to $679 million, a 37.6% increase from $493.4 million during the same period last year. Comparable store sales during the quarter increased 18.6%. During the quarter, the company opened 20 stores, including its first TriMax Super Center in San Antonio, TX. The TriMax Super Center consists of a typical OfficeMax unit flanked by a FurnitureMax store and CopyMax store. The combined unit occupies 40,000 sq.ft. The company currently operates 428 units in 42 states and Puerto Rico.

Melville Corp. (914-925-4000) reported that its consolidated net sales for the third quarter increased 2.8% to $2.814 billion compared to $2.737 billion during the same period last year. Consolidated net loss for the quarter was $2.48 million compared to consolidated net earnings of $51.718 million last year. Comparable store sales remained unchanged. The company also announced that it plans to split into three independent, publicly held companies. One group will contain CVS, Linens 'N Things and Bob's Stores. A second group will contain Footaction, Thom McAn and Meldisco. The third group will contain Kay-Bee toys. The company is currently in the process of selling its Marshalls chain to T.J. Maxx and is seeking buyers for its Wilsons leather goods chain and This End Up home furnishings chain.

Spiegel, Inc. (708-769-2596) reported that revenues for its third quarter increased six percent to $685.9 million compared to $649.4 million during the same period last year. However, the company reported a third quarter net loss of $22.6 million compared to net earnings of $2.8 million last year. Comparable store sales at its Eddie Bauer units increased four percent. The company currently operates 400 units trading as Eddie Bauer, Eddie Bauer Home, AKA EDDIE BAUER, Newport News, E Style and For You from Spiegel. The company also publishes a catalog.

Rock Bottom Restaurants, Inc. (303-417-4000) reported that its third quarter net income increased 93.4% to $1.1 million compared to $547,796 during the same period last year. Revenues during the quarter increased to $19.6 million, an 82.5% increase over last year's revenues of $10.7 million. Comparable restaurant sales fell 1.1% for the quarter. During the quarter, the company opened two units and is planning to open two more before the end of the year. Fourteen units are planned for 1996. Currently, the company operates nine Rock Bottom Brewery restaurants and 22 Old Chicago restaurants.

Regis Corporation (612-947-7000) reported that sales for its fiscal first quarter increased 9.1% to $11.72 million. Comparable store sales increased 3.8%. During the quarter, the company acquired and opened 141 new units. The company currently operates 1,653 salons trading as Regis Hairstylists, MasterCuts, Trade Secret and International.

Smith's Food & Drug Centers (801-974-1490) reported that sales during its third quarter increased 6% to $768 million from $725 million during the same period last year. However, net income fell 17% to $11.1 million from $13.3 million last year and comparable store sales decreased 1.8%. During the first nine months of the year, the company opened nine units and is planning to open six units before the end of the year. The company currently operates 148 supermarkets in eight western states.

HomeTown Buffet, Inc. (619-546-9096) reported that its income during the third quarter increased 84% to $1.759 million compared to $958,000 during the same period last year. Total revenues increased 87% to $38 million from $20.3 million last year. During the quarter, the company opened four restaurants and is planning to open 12 more during the fourth quarter. Currently, the company operates 77 corporate and franchised units.

Mergers & Acquisitions

Movie Warehouse Management (606-276-0014) recently agreed to sell its 43-unit chain to Movie Warehouse in MI. Movie Warehouse, the buyer, currently operates 63 video stores and will obtain the national rights to the Movie Warehouse name.

Video Update (612-222-0006) recently entered into a letter of agreement to acquire the assets of Videoland, Inc., a seven-unit video store chain in Indianapolis, IN. Closing on the deal is expected this month. After the deal is completed, Video Update will own 198 video stores throughout North America.

Western Auto Supply Company (708-286-2500) recently entered into an agreement to acquire the assets of Wheels Discount Auto Supply, Inc., a division of Fays, Inc. (315-451-8000) for $37 million. Western Auto plans to acquire the 82-unit chain, remodel the stores and reopen them as Western Auto's Parts America stores. Western Auto currently operates 390 Western Auto company-owned stores, 900 Western Auto associate stores, 138 National Tire Warehouse units, 121 Tire America stores and 22 Parts America units nationwide.

Drug Emporium, Inc. (614-548-7080) plans to acquire 18 F&M Distributors, Inc. (810-758-1400) stores in the Detroit, MI area and five in the Baltimore, MD area. Drug Emporium plans to operates the Detroit, MI units under the F&M name. The agreement is subject to the approval of the bankruptcy court. After the sale is completed, F&M will operate 34 units and Drug Emporium will operate 234 company and franchised units.

Deb Shops, Inc. (215-676-6000) recently acquired the 13-unit chain of Atlantic Book Shops for $4.7 million. Deb Shops, Inc., which operates 368 women's apparel stores under the tradenames Deb, CSO, Joy and Tops 'N Bottoms, plans to expand the Atlantic chain.

Blockbuster Entertainment Group (305-832-3000) recently acquired 51% of the stock of Video Argentina, Blockbuster's Argentinean franchisee which operates two Blockbuster Video stores and 24 Errol's video stores.

Younkers, Inc. (515-247-7159) recently agreed to sell its 53-unit department store chain to Proffitt's, Inc. in a stock swap valued at $253 million. Younkers had rejected buyout offers from Carson Pirie Scott & Co. before deciding to sell to Proffitt's. Proffitt's currently operates 26 Proffitt's department stores and 28 MacRae's department stores in the south and southeast. The deal, which requires approval from both company's shareholders, is expected to be completed during January.

Home-Vision Entertainment (207-725-7000), which recently filed an registration statement with the Securities and Exchange Commission for an initial public offering of stock, plans to use the proceeds from the stock sale to purchase four video store chains for $40.3 million in cash, $5.7 million in stock and $3.1 million in assumed liabilities. The chains to be purchased include the 34-unit chain Video Factory of Buffalo, NY; the 19-unit chain Video King of Binghamton, NY; the 13-unit chain Super Video of Woodbridge, NJ and the five-unit chain Applause Video of Guilford, CT.

Lead Sheet

Rolane Factory Outlet, Inc.

dba Rolane Factory Outlet

Joseph Horn

PO Box 5465

Greensboro, NC 27435

910-854-8602

Accessories

The 11-unit chain operates locations in GA, NC, SC, TN and VA. The stores, selling hosiery, socks and related accessories, occupy spaces of 2,400 sq.ft. in strip centers and industrial sites. Growth opportunities are sought in the existing markets and the company is looking for 12,000 sq.ft. sites.

Loehmann's, Inc.

Len Depippo

2500 Halsey Street

Bronx, NY 10461

718-409-2000, Fax 518-2766

Apparel

The 69-unit chain operates locations in 23 states. The stores, selling better women's ready-to-wear at off-price points, occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in downtown store fronts, regional malls and strip centers. Growth opportunities are sought nationwide.

Kar Parts

Bill Horvath

Route 206 & Sherman Avenue

Raritan, NJ 08869

908-526-7035, Fax 526-9258

Automotive

The five-unit chain operates locations in NJ. The automotive stores occupy spaces of 6,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market.

Vista Marketing Group Ltd.

dba Vista

Bill Williams, Jr.

PO Box 6206

Rockford, IL 61125-1206

815-964-3920, Fax 964-3933

Automotive

the 17-unit chain operates locations in IA, IL, MO and WI. The gas stations occupy spaces of 3,000 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in Northern IL.

Megi Corp.

dba Linen Loft

Emil Horesh, Joe Horesh

7055 B Amwiler Industrial

Atlanta, GA 30360-2818

770-840-8846, Fax 840-0449

Bed & Bath

The five-unit chain operates locations in GA. The stores, selling bed, bath and kitchen items, occupy spaces of 15,000 sq.ft. in power and strip centers. Preferred locations are anchored by a major tenant. Plans call for two openings in the coming 18 months. Expansion will take place in Atlanta, GA. The company is looking for sites 18,000 sq.ft. to 25,000 sq.ft. and typically signs leases running at least 10 years.

John S. Cheever Co.

dba Paperama, Party Experience

Jim Ryan

40 Robbie Road

Avon, MA 02322

508-580-8840, Fax 587-3521

Cards & Gifts

The 16-unit chain operates locations in CT, MA, NH and RI. The stores, selling cards, gifts, party and stationary items, occupy spaces of 30,000 sq.ft. in strip centers and regional malls. Growth opportunities are sought in CT. The company is looking for 1,500 sq.ft. locations.

Jungle Jim's Playlands, Inc.

Kevin Smith

60 Hickory Drive

Waltham, MA 02154

617-890-1800, Fax 890-1810

Entertainment

The eight-unit chain operates locations in AZ, CO, IL, MI, MO, TX, UT and Mexico. The concept, offering children's indoor play areas, occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in power and strip centers. Preferred anchors include Toys 'R Us and tablecloth restaurants. Plans call for 10 openings in the coming 18 months. Expansion will take place in VA, MD, PA, NJ, NY, CT, MA, IL, OH and MI. Preferred demographics include a population of 250,000 within five miles earning at least $45,000.

Fabric Warehouse

Steve Roth

2201 East Edgar Road

Linden, NJ 07036

908-486-6616

Fabric

The eight-unit chain operates locations in PA and NJ. The fabric stores occupy spaces of 4,000 sq.ft. to 5,500 sq.ft. in freestanding facilities, outlet and strip centers. Growth opportunities are sought in CT, DE, NJ, NY and PA.

Fresh Blend, Inc.

dba Fresh Blend Smoothie & Juice Bar

Brad Skepner

801 San Ramon Valley Blvd.

Danville, CA 94526

510-837-6173, Fax 837-1938

Food

The five-unit chain operates locations in AZ, CA and NV. The stores, selling juice drinks, occupy spaces of 900 sq.ft. to 1,500 sq.ft. in freestanding facilities, specialty and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in CA and NV.

Val Corporation

dba Val Stores

Gene Hawkins

PO Box 670

New Castle, IN 47362

317-529-9770, Fax 529-9777

General Merchandise

The 16-unit chain operates locations in OH and IN. The stores occupy spaces of 20,000 sq.ft. to 25,000 sq.ft. in strip centers. Growth opportunities are sought in the existing markets.

Salon Development Corp.

dba Cutting Crew, Gentry

Robert Shaw

PO Box 346

East Hanover, NJ 07936

201-884-2330, Fax 884-0424

Hair Salon

The 53-unit chain operates locations in CT, NJ and NY. The hair salons occupy spaces of 1,000 sq.ft. in regional malls. Plans call for the opening of five units annually. Expansion will take place in the existing markets.

Health Rite, Inc.

dba Vitamin Specialties

Bill Evans

8160 Ogontz Avenue

Wyncote, PA 19095

215-572-0142, Fax 885-1790

Health

The 18-unit chain operates locations in DE, NJ and PA. The stores, selling vitamins and nutritional supplements, occupy spaces of 1,000 sq.ft. in strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in Philadelphia, PA and southern NJ. The company is looking for spaces running 900 sq.ft. to 1,200 sq.ft.

Welcome Home, Inc.

dba Welcome Home

Billie Hall

309-D Raleigh Street

Wilmington, NC 28412

910-791-4312, Fax 791-4945

Home Decor

The 212-unit chain operates locations nationwide. The home accessories stores occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in regional malls. Plans call for as many as 40 openings in the coming 18 months. Expansion will take place nationwide.

Sleep-O-Rama, Inc.

dba Sleep-O-Rama

Herb Workstel

1790 Mears Parkway

Margate, FL 33063

305-972-1718, Fax 979-8613

Home Furnishings

The 17-unit chain operates locations in FL. The stores occupy spaces of 4,000 sq.ft. in freestanding facilities. Growth opportunities are sought in Southeastern FL from Homestead to Stuart only.

Precise Jewelers

Sam Malky

2009 Montclair Plaza Lane

Montclair, CA 91763

909-399-9888, Fax 399-9890

Jewelry

The three-unit chain operates locations in CA. The stores, offering diamond and gold jewelry as well as jewelry repair, occupy spaces of 1,000 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place in CA and NJ.

Carlos Falchi

Pat Buschkuhl

Woodbury Common Route 32 #E-6

Central Valley, NY 10917

914-928-6414, Fax 928-6369

Leather

The two-unit chain operates locations in NY. The stores, selling fine leather handbags and accessories, occupy spaces of 1,000 sq.ft. in outlet centers. Plans call for one opening in the coming 18 months. Expansion will take place on the West Coast.

H&H Music Co., Inc.

Clyde Reynolds

11522 Old Katy Road

Houston, TX 77043

713-531-9222, Fax 589-9730

Music

The 10-unit chain operates locations in TX. The full-line music stores occupy spaces of 3,000 sq.ft. in freestanding facilities and strip centers. Preferred sites are located adjacent to regional malls. Growth opportunities are sought in northern Houston, TX. The company is looking to lease or purchase sites ranging from 5,000 sq.ft. to 10,000 sq.ft.

Harmony House Records, Inc.

dba Harmony House Records

Lloyd Welch

1755 East Maple Road

Troy, MI 48083

810-524-2800, Fax 524-1266

Music

The 38-unit chain operates locations in MI and OH. The stores, selling compact discs, cassettes and related accessories, occupy spaces of 4,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place in MI.

OfficeMax, Inc.

dba OfficeMax

Mark Keschl

3605 Warrensville Center Road

Cleveland, OH 44122

216-295-6411, Fax 283-3365

Office

The 426-unit chain operates locations nationwide. The office supply stores occupy spaces of 23,500 sq.ft. in freestanding facilities, power and strip centers. Plans call for as many as 80 openings in the coming 18 months. Expansion will take place nationwide.

Hush Puppies Retail, Inc.

dba Hush Puppies Factory Direct

Kathie Porter

9341 Courtland Drive

Rockford, MI 49351

616-866-5580, Fax 866-0341

Shoes

The 62-unit chain operates locations in AL, FL, GA, IL, IN, KY, MA, MI, MN, MO, NY, PA, SC, TN, VA and WI. The stores, selling men's, women's and children's footwear, occupy spaces of 3,000 sq.ft. in outlet centers. Plans call for as many as six openings in the coming 18 months. Expansion will take place nationwide.

Klein's All Sports

Neil Klein

14 Wetmore Street

New York Mills, NY 13417

315-768-8194, Fax 768-1510

Sporting Goods

The 14-unit chain operates locations in MA and NY. The sporting goods stores occupy spaces of 7,500 sq.ft. in regional malls and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets.

Waremart, Inc.

dba Waremart Foods, Cub Foods

Robert Richens

8590 Fairview Avenue

Boise, ID 83704

208-377-0110, Fax 377-0474

Supermarket

The 23-unit chain operates locations in CA, ID, NV, OR and WA. The stores, selling food, general merchandise and soft goods, occupy spaces of 84,000 sq.ft. in freestanding facilities and power centers. Plans call for two openings in the coming 18 months. Expansion will take place in Chico, CA and Moscow, ID.

Moovies, Inc.

dba Moovies

David Hurd

3172 Wadehampton Boulevard

Taylors, SC 29687

803-292-2072, Fax 292-0364

Video

The 102-unit chain operates locations along the East Coast and in IA. The video stores occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in freestanding facilities. Plans call for 50 openings in the coming 18 months. Expansion will take place in the existing markets.

Buyers & Sellers of Commercial Properties

Schmier & Feurring Realty has the listing to sell Delray Town Center in Delray Beach, FL. The 99,000 sq.ft. project is 96% leased with Albertson's and Blockbuster Video serving as anchors. The asking price is $8.5 million.

For more information, contact Lori Cohen at (407-488-9100), Fax (482-0181).

Basser Kaufman is in the market to acquire vacant land for commercial development. Preferred sites are a minimum of five acres. The company will also consider industrial sites that can be converted to retail shopping centers and existing centers with expansion capabilities.

For more information, contact Floyd Argentiere at (516-569-3700), Fax (569-7528).

Goldmark Investment Company has the listing to sell two 12,000 sq.ft. strip centers in Fargo, ND and Moorhead, MN. The company also brokered the sale of Market Square, an enclosed 30,000 sq.ft. center. The selling price was $1 million.

For more information, contact John J. Iverson at (701-239-5824), Fax (239-5837).

Metro Commercial Real Estate, Inc. brokered the sale of land in Winslow Township, NJ. The buyer, Super G, plans to construct a 65,000 sq.ft. Giant Foods Supermarket on the site.

For more information, contact Steve O'Malley or Tom Londres at (609-866-1900), Fax (866-1611).

Preferred Property Development is selling 37,029 sq.ft. of stores within a 113,151 sq.ft. project in National City, CA. The portion for sale is anchored by Great Western Savings Bank and One Price Clothing. Anchors tenants in the portion that is not for sale include Vons Supermarket, Sav-On Drugs and Carl's Jr. The asking price is $5.9 million. A loan balance of $3.866 million at 8 7/8% interest is available. The company is also in the market to acquire freestanding, single, rated tenants.

For more information, contact Ray Gelgur at (714-493-1313), Fax (493-1392).

Chase Properties is in the market to purchase well located properties of at least 110,000 sq.ft. nationwide, except the west coast.

For more information, contact David Pallhesko at (216-464-6626), Fax (464-6346).

Divaris Real Estate, Inc. has the listing to sell a 2.8 acre parcel of land at Victory Center-Kiln Creek in Newport News, VA. The site is located adjacent to a 60,000 sq.ft. Gourmet Farm Fresh store and across from 1,200 acres of residential development. The asking price is $900,000. The company has the listing to sell 1.2 acres of land in York County, VA. The site has 153 feet of frontage on George Washington Memorial Parkway. The asking price is $450,000. The company also has the listing to sell 7.8 acres of land in York County, VA. The site, which can be subdivided, has 579 feet of frontage on Victory Boulevard which generates a daily traffic count of 38,000 vehicles. The site is also located near a 193,000 sq.ft. Super Kmart and a 60,000 sq.ft. Farm Fresh. All three properties are zoned commercial.

For more information, contact Missy Martinovich at (804-873-4700), Fax (873-4701).

The David Cronheim Company brokered the sale of Cedar Grove Center in Franklin Township. The 59,741 sq.ft. project is anchored by Rite Aid. The selling price was $7.2 million. The company also has the listing to sell two acres of land located at the intersection of Easton Avenue and JFK Boulevard in Franklin Township, NJ. The land is zoned commercial/retail/service/office pads/strip. The asking price is $695,000.

For more information, contact Peter Wisniewski at (201-635-2180), Fax (635-1922).

CB Commercial Real Estate Group, Inc. of Los Angeles, CA brokered the sale of an 11,769 sq.ft. former Standard Brands Paint Company Store in Long Beach, CA to Pep Boys. The purchase price was $875,000.

For more information, contact Carol Schillne or Mike Jensen at (714-939-2220).

Lease Signings

KLNB, Inc. (410-321-0100) leased 3,330 sq.ft. to Music Go Round at Normandy Shopping Center in Ellicott City, MD; 5,130 sq.ft. to Play It Again Sports at Carroll Plaza Shopping Center in Westminster, MD; 2,920 sq.ft. to Play It Again Sports at Olney Village Mart in Olney, MD; 2,345 sq.ft. to Bruegger's Bagel Bakery at Plaza America in Reston, VA; 1,344 sq.ft. to Creative Hairdressers at Stavlas Center in Linthicum, MD; 1,000 sq.ft. to Nail Trix at Mount Clare Junction Shopping Center in Baltimore, MD; 4,500 sq.ft. to M.A.B. Paints and Coatings at Fairgrounds Business Center in Timonium, MD; 3,250 sq.ft. to York Barbell Total Fitness and 1,106 sq.ft. to American Personal Communications at Texas Center in Cockeysville, MD and 1,073 sq.ft. to Great Clips at Cranberry Square in Westminster, MD.

Summit Realty Leasing and Management Corp. (407-368-2043) leased 1,100 sq.ft. to Crudans House of Consignment in Boca Raton, FL.

Realco Group, Inc. (516-294-7070) leased 25,000 sq.ft. to OfficeMax at Home Depot Plaza in Copiague, NY and also leased space to E&B Marine for a superstore at South Bay Commons in West Islip, NY.

Divaris Real Estate, Inc. (804-497-2113) leased 33,500 sq.ft. to Petstuff, Inc. at Warwick Center in Newport News, VA.

Mortbitzer Group, Inc. (407-539-1000) leased 1,200 sq.ft. to Printmasters and 1,200 sq.ft. to Epic Surf and Swim at Wellington Market Place in Wellington, FL; 750 sq.ft. to Citrus Sew and Vac at Crystal River Shopping Center in Crystal River, FL and 900 sq.ft. to Dunkin Donuts at Shoppes on Sand Key in Clearwater, FL.

J.J. Herman & Associates (800-720-6058) leased 40,230 sq.ft. to Syms, Inc. at Alpha Plaza in Cleveland, OH and leased 11,400 sq.ft. to Sav-A-Lot in Cleveland, OH.

Ross Realty Group, Inc. (813-725-2800) leased 7,500 sq.ft. to Childtime Childcare, Inc. in Tampa, FL.

Price Associates, Inc. (312-641-1800) leased space to Bagel Brothers Bakery and Deli at The Grove Shopping Center in Downers Grove, IL

Erwin L. Greenberg Commercial Corporation (410-837-2500) leased 9,000 sq.ft. to Cambridge Premier Cinemas at Dorchester Square Shopping Center in Cambridge, MD and 40,000 sq.ft. to Gold's Gym at Beltway Crossing Shopping Center in Glen Burnie, MD.

The Midland Group (314-576-1900) leased 27,932 sq.ft. to OfficeMax in Fairview Heights, IL.

R.J. Brunelli & Co. (908-721-5800) leased Sneaker Stadium an 18,000 sq.ft. space in Eatontown, NJ, an 18,300 sq.ft. space in East Hanover, NJ as well as two spaces on Long Island, NY and a space in Virginia Beach, VA. The company also leased 23,000 sq.ft. to Pet Food Giant in Union Township, NJ; 15,000 sq.ft. to Barnes & Noble at Edgewater Commons Shopping Center in Edgewater, NJ and 8,000 sq.ft. to Easy Video Store at Towne Pointe Plaza in Manalapan Township, NJ.

Grubb & Ellis Commercial Real Estate Services (714-937-0881) leased 7,060 sq.ft. to Pizzeria Uno Chicago Bar & Grille at Ramada West Hollywood Hotel.

Exclusives: Leasing & Management Assignments

Schultz Properties (904-354-1789) has been named the exclusive representative for The Ski and Cycle Hut.

Shelter Bay Retail Group (415-388-4480) has been named the property manager of Birdcage Walk Shopping Center in Citrus Heights, CA and West Lancaster Plaza in Lancaster, CA. Birdcage Walk Shopping Center, which is 315,000 sq.ft., is anchored by Macy's, Montgomery Wards, Cost Plus, Long's Drugs, REI, Toys 'R Us and General Cinema. West Lancaster Plaza, encompassing 131,000 sq.ft., is anchored by Albertson's, Movies West, Taco Bell and Subway.

R.J. Brunelli & Co. (908-721-5800) has been named to provide real estate representation services throughout New Jersey for Rattlesnake Southwestern Grill. The company is currently seeking existing restaurants ranging in size from 5,000 sq.ft. to 10,000 sq.ft. The company was also named the exclusive broker for Stadium Plaza, a 26,000 sq.ft. project anchored by Sneaker Stadium in Eatontown, NJ. Approximately 8,000 sq.ft. is available for lease.

Montgomery Group Affiliates (610-825-7100) has been named the exclusive leasing and managing agent for Bristol Plaza in Bristol Township, PA. The 150,000 sq.ft. project is anchored by Pathmark Supermarket, Payless ShoeSource, Kentucky Fried Chicken and JC Penney Furniture Outlet.

Store Closings

Gateway Apparel (314-822-1550) plans to close as many as 88 women's apparel stores in AZ, CO, GA, MO, OH, IA, IN, MI and OK. The company operates nearly 200 units nationwide.

Fretter, Inc. (810-220-5000) recently sold all of the merchandise from Silo, Inc. stores to Great American Asset Management Co. which plans to liquidate the inventory. After the merchandise is depleted, the 20 Silo stores in DE, NJ and PA will be closed.

Target (612-370-6073) plans to close a store at Capitol Court Mall in Milwaukee, WI during January. The company has operated the store since 1985, but is closing it due to its poor financial performance.

Tapp's Department Store (803-765-2411) recently closed its downtown Columbia, SC store and its Woodhill Mall store in Columbia. Its Dutch Square Mall store in Columbia will close after all of the merchandise is sold. The company had operated the business for 92 years.

Space Place

Georgia

Ft. Oglethorpe- An 88,000 sq.ft. former Hill's Store is available for lease at a 154,000 sq.ft. project. The site fronts Highway 2 and U.S. 27 which generate a daily traffic count of 30,178 vehicles. Demographics include a five-mile population of 90,500 earning $34,784 as the average household income.

For details, contact Bryant Gilbreath of Herman Walldorf & Co., Inc. at (423-756-2400), Fax (423-756-2404).

Maryland

Baltimore- Belvedere Square is anchored by Pier 1 Imports, Chili's Restaurant and Blockbuster Video. The 100,000 sq.ft. project has a 6,500 sq.ft. space available for lease by a restaurant and up to 13,000 sq.ft. available for other tenants.

For details, contact George Panos of Thornhill Properties, Inc. at (410-296-2877), Fax (296-9696).

Michigan

Hillsdale- Hillsdale Crossing is anchored by Wal*Mart. The 212,000 sq.ft. project has spaces from 1,600 sq.ft. to 18,000 sq.ft. as well as a 47,000 sq.ft. supermarket pad site available for lease. The site fronts M-99 which generates a daily traffic count of 14,000 vehicles. Demographics include a three-mile population of 5,280 earning $34,136 as the average income and a five-mile population of 14,426 earning $36,542 as the average income and a 10-mile population of 56,639 earning $37,202 as the average income.

For details, contact Fred Zehnder of Jonesville Development at (800-334-4882, Ext. 2945), Fax (810-755-9348).

Montana

Missoula- Holiday Village Shopping Center is anchored by Albertsons, Osco Drug and JoAnn Fabric. The 126,000 sq.ft. project has spaces available for lease. Demographics include a three-mile population of 54,000 earning $32,000 as the average household income and a five-mile population of 63,000 earning $34,000 as the average household income.

For details, contact David Rosen of Rosen Associates Management Corp. at (516-822-5350), Fax (433-3821).

Nebraska

Omaha- Brookside Plaza Shopping Center is anchored by Festival Foods. The 91,000 sq.ft. project has a 1,200 sq.ft. space and a pad site available for lease. Demographics include a three-mile population of 77,000 earing $50,000 as the average household income and a five-mile population of 155,000 earning $57,000 as the average household income.

For details, contact David Rosen of Rosen Associates Management Corp. at (516-822-5350), Fax (433-3821).

Ohio

Cincinnati- Shoppes of Mason is anchored by Kroger. The 89,000 sq.ft. project has three outlots available for lease. The site fronts SR 741 and Kings Mills.

For details, contact David Birdsall of The Midland Group at (513-891-2323), Fax (891-2467).

Texas

New Braunfels- A 46,000 sq.ft. former HEB Supermarket is available for lease. In San Antonio- A 3,500 sq.ft. end cap space is available for lease at Bandera North; a 2,790 sq.ft. end cap space is available for lease at Emerald Crossing; a 4,560 sq.ft. end cap space is available for lease at Bandera Plaza; a 2,746 sq.ft. end cap space is available for lease at Ingram Place; a 9,850 sq.ft. end cap space is available for lease at Interchange Plaza; a 36,000 sq.ft. former HEB supermarket is available for lease at Adobe Creek Shopping Center; an 86,000 sq.ft. former Kmart is available for lease on Austin Highway; an 86,000 former Kmart is available for lease at Gateway Shopping Center; a 36,000 sq.ft. former supermarket is available for lease at South Flores/Military Drive and a 28,000 sq.ft. space is available for lease at Terrell Plaza.

For details, contact Rohde Realty at (210-366-1400), Fax (342-4586).