The
Dealmakers Issue Number 42 for the week of November 24, 1995.
My Way
by
No
one ever claimed that the people in our industry are bashful, but I just came
across one of the biggest displays of gall I've encountered in 25 years in this
business. A friend of mine sent me a
copy of a letter he received from their tenant, ClothesTime. The letter invited my friend to their annual
Christmas Party at the Disneyland Hotel in Anaheim, CA. To attend, however, my friend had to make a
"contribution" of $50 for every lease he had with Clothestime (they
had four stores, therefore $200 in "contributions"). To save my friend paperwork (aren't they
considerate), he didn't have to send ClothesTime a check, they'd deduct the
cost from November's rent.
My
friend called ClothesTime after receiving the letter and explained that while
he appreciated being invited, he'd prefer the cash, "so don't deduct
it." November's rent came in and
guess what, all the stores had deducted $50 from rent. His accounting department called the tenant
saying the deduction was improper, but so far, they have been given the
runaround regarding getting the deducted rent.
That's either chutzpah like I've
never seen before or they're desperate.
I guess that's one way to raise money for a party.
Talking
about retailers, another friend, who is a retailer, explains that because of
today's difficult retail climate, whenever he calls any of his major landlords
to set up an appointment, he first feels obligated to explain that he isn't
coming to tell 'em his company is going "11" and requires a rent
reduction. While his company is solvent
and he's joking, this appears to be a major trend. Between Edison's liquidation of 500 stores,
Petrie stores closing like crazy, Fayva going bye-bye, Today's Man losing their
shirt, etc., etc., etc. and etc. and the uncertainty of retailing right now,
there is a major abundance of space available for sub-leasing today. While the "A" locations are still commanding a substantial premium, the
"B" and "C" locations are going wanting, and in most cases,
are being leased at attractive rentals for the retailer. This is causing major pressure on the
landlords. They're ending up not
competing with other centers for tenants, but competing with their own tenant,
who quite often can lease at lower rates than the owner. Haven't we been here before?
Imagine
the poor landlord in a middle market that has Fashion Bug as a tenant. If they
go "11," who does he replace 'em with? No one I can think of that's of similar
"quality." What makes matters
worse, landlords have now replaced the banks and investors as the
"preferred" method of financing a retailer's expansion program. Demanding $10 to $20 a foot in T.I. above a
"vanilla box" is not uncommon for many strip oriented retailers and
in the malls, the "Limiteds" of the world can command $150 per ft. in
T.I. What happens when this generation
of retailers goes "11?" The
debt on the center is insane; the rents are artificially high because the
developer added to the rent the cost of the Tenant Improvements, so a $9 rent
becomes a $12 cost (and because the tenant wanted the additional funding, they
didn't negotiate quite as hard on rent, so the $9 could have been $7). When these tenants disavow their leases, the
owner becomes dead meat, he can't lease the space at "pro forma."
Lately,
it seems, I've been having more conversations regarding sub-leasing from the
tenant than directly from the landlord, and I've become somewhat active in the
sale of retail chains (the ones where their real estate is worth more than the
company) than in the past 20 years. Unfortunately
for the industry, companies like Keen Realty, Prime Locations and Shottensteins
have a great future ahead of 'em (they're good companies, don't get me wrong,
but for them to prosper, the rest of the industry has to suffer).
On a
different subject, I just received a fax from a third friend, Steve Felix of
Levin Management Corp. Steve sent me a
copy of his notes from a conference he attended called "Technology &
Real Estate" (he's always been a leading edge type of guy). Anyway, some of his notes I find
"fascinating," such as "only one third of the attendees (real
estate people) have been on the World Wide Web, a much lower percentage than
most professionals."
That
confirms my contention that real estate people are not computer illiterate, they're
computer retards. Other trends that are
occurring now are smaller offices because of technology, downsizing and more
support personnel operating out of their home.
(I'm glad I don't own any office buildings.) Video conferencing will be common within two
years, affecting the airline/travel industry adversely (but we'll have more
time with our families, that's good).
Location, for many industries, is no longer or will no longer be that
important (but don't worry, in retailing, location, location, location is still
true.) But for many industries, the
combination of computers, modems, video broadcasting, etc. means "why have
expensive New York City offices, locate in the cheaper south or midwest." There is a migration of the middle/upper
middle class out of the cities and that will affect retailing more so than in
the past. Steve's notes go on and on
regarding the impact of technology on real estate, finances and our personal
lives.
In the
last three weeks alone we've (TKO) gotten six or seven letters/e-mail from
users of our real estate forums saying that they have ended up doing deals
because of the Internet and our (free) service in particular. That seems to be becoming the norm. I recently taught a course at New York
University on "DealMaking on the Internet." The class was evenly divided between male and
female and young and old (young being 25 to 35 and old being over 50 [that's
me]). The students wanted to learn,
except for one broker who only wanted to know "How do I make money off the
net now." When I tried to explain
he first had to understand what the "on-line" world was about before
he could make money on it, he got up and left, so there's one in every crowd.
Again,
I'll repeat my past comments, if you're not "surfing the net," you'll
be in major trouble within the next few years.
Try out the ICSC's On-line service, Shopping Center World's or any of
the commercial on-line providers, but try 'em now. (Of course, ours are the only free
ones.) Microsoft just announced they'll
be adding an "MLS" type service to their on-line service
shortly. While this will have more of an
immediate impact on the residential broker, within a few years, it will have a
substantial impact on our industry as well.
P.S. In my November 10 My Way, I misidentified the
company that provided the only decent food at the ICSC show in Kansas
City. Everyone knows that it was
Einstein Brothers Bagels who had the best food at the show. The next time I write about food I'll use my stomach
instead of my head.
Drug
Stores Looking To Expand
Taylor
Drug Stores, Inc. trades as Taylor Drug at 34 locations in KY and IN. The pharmacies occupy spaces of 8,500 sq.ft.
to 9,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the
existing markets.
For more information, contact William
Harrison, Taylor Drug Stores, Inc., PO Box 1884, Louisville, KY 40201;
502-368-6541, Fax 368-6541, Ext. 444.
Care
Pharmacy, Inc. trades as Care Pharmacy at three locations in ME and NH. The pharmacies occupy spaces of 5,000 sq.ft.
in freestanding facilities. Plans call
for one opening in the coming 18 months.
Expansion will take place in NH.
The company also operates two card stores trading as Cassidy's Hallmark
Card Stores.
For more information, contact Francis J.
Cassidy, Care Pharmacy, Inc., 98 South Main Street, Rochester, NH 03867;
603-335-2685, Fax 335-2690.
Thrifty/Payless,
Inc. trades as Payless at 536 locations in CA.
The drug stores occupy spaces of 20,000 sq.ft. in freestanding
facilities and strip centers. Plans call
for 10 openings in the coming 18 months.
Expansion will take place in the existing market.
The company also trades as Thrifty at 460
locations in CA. The drug stores occupy
spaces of 20,000 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18
months. Expansion will take place in the
existing market.
For more information on the above two
companies, contact James Gaube, Thrifty/Payless, Inc., 9275 S.W. Peyton Road,
Wilsonville, OR 97070; 503-682-4100, Fax 685-6064.
Thrift
Drug, Inc. does business as Kerr Drug Stores at 98 locations in NC, SC and
VA. The drug stores occupy spaces of
6,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, regional malls and
strip centers. Growth opportunities are
sought in the existing markets.
For more information, contact Lee Vrcek,
Thrift Drug, Inc., 615 Alpha Drive, Pittsburgh, PA 15238; 412-963-6600, Fax
967-8293.
May's
Drug Stores, Inc. does business as May's Drug Stores at 20 locations in MO and
OK and as Drug Warehouse at 14 locations in MO and OK. The drug store occupy spaces of 8,000 sq.ft.
to 8,400 sq.ft. in strip centers, while the drug warehouse units occupy spaces
of 16,000 sq.ft. to 20,000 sq.ft. in strip centers. Growth opportunities are sought in the
existing markets.
For more information, contact Gerald Heller,
May's Drug Stores, Inc., 6705 East 81st Street, Tulsa, OK 74133-4158;
918-496-9646, Fax 496-8241.
New
Construction
Homart
is planning to break ground on Brass Mill Center and Brass Mill Commons in
Waterbury, CT during Spring 1996. Brass
Mill Center will be a two-level, 900,000 sq.ft. project anchored by Filene's in
165,000 sq.ft., Sears occupying 138,000 sq.ft., J.C. Penney occupying 126,000
sq.ft. and Lechmere in 65,000 sq.ft.
Space is also be provided for a sporting goods superstore, a 12-screen
movie theater, 140 specialty shops and a food court. The adjoining project, Brass Mill Commons,
will be 200,000 sq.ft. and anchored by general merchandise, apparel,
electronics, books, office products and restaurant tenants. Additional tenants at the two sites are
expected to be announced during the first quarter of next year. The projects, which will be constructed at
the same time, are expected to open during Fall 1997.
For more information, contact Scott Keeney of
Homart, leasing agent of the project, at (312-551-5450), Fax (551-5485).
Horizon
Group, Inc. recently completed the construction of Lakeshore Marketplace in
Muskegon, MI. The project is anchored by
Toys 'R Us, Ben Franklin Crafts, Witmark and Elder Beerman. The company also recently broke ground on
phase I of Berkshire Outlet Village in Lee, MA.
The 220,000 sq.ft. project is 70% pre-leased. Tenants who have leased space are expected to
be announced during the second quarter of 1996.
Phase I is expected to open during August 1996. The company is in the process of acquiring
land for a 175,000 sq.ft. phase II expansion.
For more information, contact the Horizon
Group, Inc. at (616-798-9100).
Posel
Management Company recently broke ground on Ritz Center in Voorhees, NJ. The 125,000 sq.ft. project is anchored by a
54,000 sq.ft., 12-screen Ritz movie theater.
A 65,000 sq.ft. space and a restaurant outparcel, with a liquor license,
is available at the site.
For more information, contact Sy Goldberg of
Posel Management at (215-627-0900).
Coast
Income Properties is constructing The Courtyard at Carmel Mountain Ranch in Carmel
Mountain Ranch, CA. The 130,000 sq.ft.
project will be anchored by a 35,000 sq.ft. Linen 'N Things, a 30,000 sq.ft.
Borders Books, a 25,000 sq.ft. Staples and an 11,000 sq.ft. Petco. The site is expected to open during the first
quarter of 1996.
For more information, contact Dave Hagglund
or Peter Orth of CB Commercial Real Estate Group, Inc., the leasing and
marketing agents, at (619-546-4614 or 546-4623).
Who's
Opening and Where...
Barnes
& Noble (212-633-3512), within the last few weeks, opened 60,000 sq.ft.
bookstores at Lincoln Triangle and Union Square in New York City, NY; a 28,000
sq.ft. unit in Bloomington, IN; a 25,200 sq.ft. unit in Cincinnati, OH; a
30,000 sq.ft. unit in Augusta, ME; a 27,000 sq.ft. store in Columbia, SC; a
30,000 sq.ft. unit in the Georgetown section of Washington, D.C.; a 25,000
sq.ft. store in Myrtle Beach, SC; a 20,020 sq.ft. store in Fremont, CA; a
30,000 sq.ft. unit in Champaign, IL; a 30,000 sq.ft. unit in Evansville, IN and
a 20,000 sq.ft. store in Forest Hills, NY.
Eddie
Bauer (206-882-6470) opened a 6,300 sq.ft. store at Eaton Centre in Toronto,
Ontario, Canada last month. The unit
marks the 400th for the chain. The
company also recently opened an outlet store at Supermall of the Great
Northwest in Auburn, WA and is planning to open four superstores during 1996.
Finast
Supermarkets (216-518-6129) opened a 60,000 sq.ft. food and drug store at The
Greens of Strongsville in Strongsville, OH several weeks ago. The store also includes a full-service branch
of Fifth Third Bank. The company
currently operates 41 units in OH.
Kentucky
Fried Chicken (502-456-8300) recently opened a restaurant in New Dehli, India
through its licensee KFC India Holdings Pvt. Ltd., despite militants' threats
and government action. In addition to
serving fried chicken, the restaurant is also serving vegetarian burgers and
other items, cooked separately, to respect Indian sensitivities. KFC, which plans to open 30 restaurants in
India over the next few years, has yet to open in Bombay, Maharashtra another
potential trouble spot. Bal Thackeray, a
government leader has said that KFC won't be allowed to open in his state
because he was convinced, after a conversation with Mrs. Gandhi, that consumption
of processed chicken would lead to diseases like cancer and tuberculosis. Thackeray said, "A poison like Kentucky
Fried Chicken will only help in controlling the country's population boom, as
it would lead to more deaths. We have
better alternatives to control the population."
Baby
Superstore (803-297-9444) recently opened a 42,300 sq.ft. store in San Antonio,
TX. The company is planning to open a
second unit in the San Antonio market.
Borders,
Inc. (313-995-9702) recently opened a Borders Books and Music store in Tucson,
AZ; a unit at Perimeter Village Shopping Center in Atlanta, GA; a store in
Fairfax, VA and a store in Germantown, TN.
The company expects to be operating more than 100 units by the end of
the year and have sales in excess of $700 million. Average store sales are $7.2 million
annually.
Camelot
Corp. (214-733-3005) recently opened five Mr. CD-ROM Stores in the Dallas, TX
market. The stores ranged in size from
1,000 sq.ft. to 3,000 sq.ft. and offer more than 1,500 software titles. These corporate-owned units are the first of
a planned 100 corporate and franchised stores to be opened by Christmas, 1996.
Ralphs
Grocery Company (310-884-9000) recently opened two Food 4 Less warehouse units
in Anaheim, CA and a store in Inglewood, CA.
The units are among the series of store conversions from Ralphs
conventional supermarket to the Food 4 Less price-impact warehouse format,
following the merger between Ralphs Grocery Company and Food 4 Less
Supermarkets, Inc. The company operates
350 units in Southern CA, 27 in Northern CA and 37 in the Midwest. The Food 4 Less division operates 62 units in
Southern CA.
Melville
Corp. (914-925-4188) recently opened a 50,000 sq.ft. Linens 'N Things store in
Totowa, NJ.
The Pep
Boys (215-229-9000) recently opened a 22,000 sq.ft. supercenter in Hartford,
CT, marking its entrance into the state.
The company, which is looking to open 100 units during fiscal 1996, is
planning to open supercenters in Orange and Hamden, CT during the fourth
quarter and is looking to open stores in CT and other New England states
including Boston, MA next year.
Uptons
(770-662-2500) recently opened a 57,000 sq.ft. store at Spectrum Center in
Reston, VA.
Bugle
Boy (805-579-2339) recently opened a store at Lake Elsinore Outlet Center in
Lake Elsinore, CA.
Brooks
Brothers (212-827-6810) recently opened a 7,000 sq.ft. men's apparel store at
SouthPark Mall in Charlotte, NC.
Books-A-Million
(205-942-3737) plans to open as many as 25 superstores during 1996.
Caswell-Massey
(212-486-4259) recently opened an 1,100 sq.ft. cosmetics store in Soho,
NY. The company, which was founded in
1752, currently operates five units in Manhattan.
Kohl's
Department Stores (414-783-5800) plans to open two department stores in
Wichita, KS and units in Springfield, MO; Louisville, KY; Jackson, MI, Niles
and Cleveland, OH. The stores will
average 88,250 sq.ft. and are scheduled to open this spring. The company opened 18 stores in 1994 and 22
stores in 1995 throughout the Southeast and Midwest.
High
Tech Burrito (415-456-0606) recently opened a 1,300 sq.ft. restaurant in
Albany, CA and 1,044 sq.ft. and 1,277 sq.ft. units in Berkeley, CA. The company, which currently operates six
restaurants, plans to open 10 additional units during 1996 throughout the
greater San Francisco Bay area.
The
Italian Oven (800-332-6836) plans to open company-owned restaurants in Peters
Township, PA, North Huntingdon, PA and two in Columbus, OH during January.
Bruegger's
Bagel Bakery (802-862-4700) recently opened a unit in Plano, TX through its
franchisee Ciatti's, Inc. The company is
also looking to open a unit in Dallas during January and another unit in Plano
by December 1996. Ciatti's agreement
calls for 30 units within the coming five years.
Federated
Department Stores, Inc. (513-579-7905) plans to open a Bon Marche unit in
Olympia, WA next year and a Macy's unit in Miami, FL next year.
Electronics
Boutique (610-430-0383) recently opened its first non-mall store trading as
Stop-n-Save Software at a strip center in Edgemont, PA. The 5,000 sq.ft. store features more than
7,000 software titles. The company is
also looking to open a 10,000 sq.ft. combination store of Stop-n-Save and
Brandywine Collectibles, a sports collectibles, comics and historical
memorabilia store, during January in Springfield, PA and another unit during
the fall. Electronics Boutique operates
529 stores throughout North America and the United Kingdom.
Wal*Mart
(501-273-4000) plans to open a 127,000 sq.ft. unit at Meadowview Square
Shopping Center in Ravenna Township, OH during October 1996.
Manhattan
Bagel Company (908-544-0155) recently opened its first store in Columbus, OH
through its franchisees Anthony and Michael D'Errico.
Shari's
Management Corp. (503-641-6338) recently opened Shari's Restaurants in Aurora
and Parker, CO while a unit is under construction in Thorton, CO. The company, which currently operates 88
restaurants, is planning to open as many as 40 units in the coming five years.
Pet Food
Warehouse (612-542-0123) plans to open six units in the Minneapolis-St. Paul
area and as many as five units throughout the upper Midwestern region during
1996.
Cole
National Corporation (216-449-4100) recently opened an optical store in
Yonkers, NY, the company's 1,000th store nationwide. The company trades as Sears Optical,
Montgomery Ward Vision Center and BJ's Optical within host stores and in
freestanding stores as Sears Optical.
Lease
Signings
The
Sansone Group, Inc. (314-822-9009) leased 2,000 sq.ft. to Gateway Cleaners and
1,600 sq.ft. to Professional Opticians of Florissant at Dierbergs Clocktower
Place in St. Louis, MO.
Great
Mall of The Bay Area (408-945-4022) leased 3,608 sq.ft. to Star Force, 3,851
sq.ft. to The Sharper Image Outlet and 52,171 sq.ft. to Totally 4 Kids at Great
Mall of The Bay Area in Milpitas, CA.
Property
Resources (919-831-9090) leased 54,000 sq.ft. to Henredon Furniture Industries
in a former Rose's space at Beacon Plaza in Raleigh, NC.
Western
Investment Real Estate Trust (916-791-0600) leased 9,800 sq.ft. to Q-Zar of CA
at Skypark Plaza Shopping Center in Chico, CA.
Grubb
& Ellis (714-937-0881) leased 12,240 sq.ft. to Planet Kids, Inc. at Tustin
& Katella Plaza West in Orange, CA.
Summit
Realty and Development Corp. (407-889-5700) leased 2,500 sq.ft. to Fischer
& Schemmer, MD, PA/Bartow Eye Clinic in Bartow, FL.
The
Goldstein Group (201-703-9700) leased 31,000 sq.ft. to T.J. Maxx at Interstate
Shopping Center in Ramsey, NJ.
Torode
Realty Ltd. (403-428-8501) leased 8,381 sq.ft. to SAAN Stores and 4,421 sq.ft.
to Warehouse One at Beverly Shopping Centre in Edmonton, Alberta, Canada; 6,809
sq.ft. to Liquor Barn, 2,250 sq.ft. to Regional Laboratory, 6,000 sq.ft. to
Roger's Video and 3,500 sq.ft. to a day care center at Heritage Shopping Centre
in Edmonton, AB; 1,547 sq.ft. to Koffee Cafe, 1,510 sq.ft. to Flowers in the
Park, 1,170 sq.ft. to Panagopoulous Pizza, 1,500 sq.ft. to Rustic Charms and
1,417 sq.ft. to Arizona Tanning at Strathcona Station Shopping Centre in Sherwood
Park, AB.
Mertz
Corporation (609-234-9600) leased 5,888 sq.ft. to Video Update at Mayfair
Shopping Center in Philadelphia, PA.
Glimcor
Realty Ltd. (412-765-8079) leased space to Fuddruckers for restaurants in
Harmarville and Greensburg, PA.
Koll
(312-894-1010) leased 4,465 sq.ft. to Karen Clothing and Coat Co. and 955
sq.ft. to Color Magic at Sanders Court Shopping Center in Northbrook, IL; 3,000
sq.ft. to Bev's Hallmark Shop, 2,064 sq.ft. to Sally Beauty Salon and 1,800
sq.ft. to McDonald's Express at Hinsdale Lake Commons in Willowbrook, IL; 2,400
sq.ft. to Once Upon A Child, 1,459 sq.ft. to Uhlemann Optical and 5,192 sq.ft.
to N.D. Video at Market Meadows in Naperville, IL and 1,065 sq.ft. to Mail
Boxes Etc. and 1,373 sq.ft. to Travel Agent International at Iroquois Center in
Naperville, IL.
Kaiserman
Management Company, Inc. (215-546-2665) leased 4,000 sq.ft. to Boston Market
and leased space to St. Jude Shop and Manhattan Bagel at Barclay Farms Shopping
Center and Office Pavilion in Cherry Hill, NJ.
LaSalle
Partners (203-275-6100) leased space to Baubles Bangles 'n Beads at Civic
Center Mall in Hartford, CT.
CB
Commercial Real Estate Group (708-948-6903) leased 9,521 sq.ft. to Family
Dollar Stores at Grand Plaza in Franklin Park, IL.
Neal*Mannausa,
Inc. (941-365-1511) leased 1,095 sq.ft. to Patchington's at Avenue of Flowers
Shopping Center in Longboat Key, FL.
Financial
News...
Smith's
Home Furnishing (503-222-7558) recently converted its Chapter 11 bankruptcy to
a Chapter 7 liquidation at its remaining nine stores.
Eckerd
Corporation (813-399-6355) reported that its third quarter sales increased
11.7% to $1.165 billion. Pharmacy sales
increased 18.3% and non-pharmacy sales increased 4.4% over last year's results. Comparable store sales increased 10.2% during
the quarter. The company currently
operates more than 1,700 drugs stores in 13 states and more than 500 Eckerd
Express one-hour photo stores in nine states.
Cato
Corporation (704-554-8510) reported that sales for its third quarter fell three
percent to $105.8 million compared to $109.1 million during the same period
last year. Comparable store sales fell
eight percent for the quarter. The
company currently operates 671 units trading as Cato Fashion/Cato Plus and It's
Fashion! in 22 states.
Venture
Stores, Inc. (314-281-7800) reported that its third quarter sales fell 4.1% to
$444.6 million compared to $463.6 million during the same period last
year. Comparable store sales for the
quarter fell eight percent. The company,
which operates 115 stores in nine states, plans to reposition itself as a
value-oriented family store beginning in the first quarter of 1996.
The
Dress Barn, Inc. (914-369-4600) reported that its first quarter sales, ended
October 28, increased six percent to $137.4 million compared to $129.9 million
during the same period last year.
However, comparable store sales fell four percent. The company currently operates 776 units in
43 states.
Ernst
Home Centers, Inc. (206-621-6700) reported that sales for fiscal year 1995,
ended October 28, increased 8.5% to $572 million, but that comparable store
sales fell 4.6%. During its fiscal year,
the company opened 24 superstores and closed eight of its base stores. Recently, the company completed the roll-out
of its new homestyles department, which includes specialty kitchen and bath
items, floor coverings, domestics, storage systems and home decor products, at
its stores.
Loehmann's
(718-409-2000), which operates more than 80 off-price apparel stores, is
planning to go public.
The May
Department Stores Company (314-342-6300) reported that its net earnings for the
third quarter decreased to $135 million compared to $139 million during the
same period last year. Third quarter
sales increased 7.4% to $3.08 billion compared to $2.86 billion last year. During the quarter, the company opened 31
department stores and 25 Payless Kids expansion stores. During the first nine months of 1995, the
company has opened 147 Payless ShoeSource stores. Currently, the company operates 344
department stores and 4,582 Payless stores.
Edison
Brothers Stores, Inc. (314-331-6000) recently filed for Chapter 11 Bankruptcy
protection listing assets of $992.7 million and liabilities of $608.7
million. The company, which operates
more than 2,700 stores, plans to close at least 500 stores and sell its
Time-Out/Space Port mall-based entertainment centers. The company also plans to merge its Jeans
West stores with its Oaktree stores. The
company also operates stores under the tradenames J. Riggins, Zeidler &
Zeidler, 5-7-9 Shops, Repp Ltd., Spirale, Wild Pair, Bakers and Leeds.
MacFrugal's
Bargains-Close Outs, Inc. (310-761-4167) reported that its third quarter total
sales decreased 3.9% to $152.379 million compared to $158.549 million during
the same period last year. Comparable
store sales for the quarter fell 11.9%.
The company currently operates 303 discount stores trading as
MacFrugal's Bargains-Closouts and Pic 'N Save in 16 states.
Phar-Mor,
Inc. (216-746-6641), which emerged from bankruptcy during September, reported
that its first quarter sales, ended September 30, decreased 7.6% to $254.8
million compared to $275.7 million last year.
The company currently operates 102 discount drug stores.
General
Nutrition Companies, Inc. (412-288-4621) reported that its systemwide sales for
the third quarter increased 30% to $213 million. Comparable store sales increased 12.2% at
company-owned stores and 16.8% at franchised stores. The company currently operates 2,377 units
nationwide and in 13 countries.
50-Off
Stores, Inc. (210-805-9300) reported that third quarter net sales fell to $37.9
million compared to $45.2 million last year.
Comparable store sales fell 12.8%.
Currently, the company operates 102 off-price stores.
Stop
& Shop Companies, Inc. (617-380-8000) reported that sales during its third
quarter increased 5.5% to $901.159 million compared to $854.566 million last
year. Comparable store sales for the
quarter increased one percent. The
company currently operates 107 Stop & Shop supermarkets, 51 Purity
supermarkets and 64 Li'l Peach convenience stores.
Claire's
Stores, Inc. (305-433-3900) reported that its third quarter sales increased 15%
to $79.835 million compared to $69.5 million during the same period last
year. Comparable store sales increased
five percent. The company currently
operates 1,301 women's fashion accessories stores under the tradenames
Claire's, Claire's Boutiques, Claire's Accessories, Dara Michelle and Topkapi
in 48 states, Canada, the Caribbean and Japan.
Musicland
Stores Corporation (612-932-7700) recently announced that it plans to file a
registration statement for an initial public offering of up to 49% of Suncoast
Motion Picture Company. The offering is
expected to be held during the first quarter of next year. Proceeds from the stock sale will be used to
reduce debt and for further expansion.
The company currently operates 403 Suncoast units in 46 states and
Puerto Rico.
Today's
Man, Inc. (609-235-5656) reported that its third quarter sales increased seven
percent to $54.9 million compared to $51.1 million during the same period last
year. However, the company reported a
net loss of $4.1 million compared to net income of $220,800 last year. Comparable store sales declined 11% for the
quarter. In other news, the company
announced that it plans to postpone all new store openings during 1996. The company currently operates 35 menswear
superstores and one outlet store along the East Coast and in the Midwestern
region.
Lead
Sheet
Windsor
Fashions, Inc.
dba
Windsor Fashions
Leon
Zakaria
3901
South Broadway
Los
Angeles, CA 90037
213-232-8121,
Fax 234-3970
Apparel
The
25-unit chain operates locations in CA and NV.
The stores, selling junior ready-to-wear apparel and accessories, occupy
spaces of 5,000 sq.ft. in regional malls.
Growth opportunities are sought in CA.
Bridgewater
Auto Body, Inc.
dba
Bridgewater Auto Body
c/o
L.E. Keller
Keller
& Co., Inc.
56 Rt.
173 West
Hampton,
NJ 08827
908-730-8744,
Fax 735-6553
Automotive
The
three-unit chain operates locations in NJ.
The automotive body repair shops occupy spaces of 4,000 sq.ft. to 6,000
sq.ft. in freestanding facilities.
Preferred locations are primary US or state roads having a daily traffic
count of at least 15,000 vehicles. Plans
call for as many as 15 openings in the coming 24 months. Expansion will take place in central and
northern NJ as well as eastern PA. The
company will either purchase its sites or sign a lease running 10 years with
four options running five years each.
Comp
USA
James
Goold
14951
North Dallas Parkway
Dallas,
TX 75240
214-982-4488,
Fax 982-4600
Computers
The
88-unit chain operates locations nationwide.
The computer stores occupy spaces of 26,000 sq.ft. in freestanding
facilities and strip centers. Plans call
for as many as 30 openings in the coming 18 months. Expansion will take place nationwide.
The
Markettes
A.C.
West, Jr.
PO Box
729
Hartsville,
SC 29550
803-332-2201,
Fax 383-0190
Convenience
The
15-unit chain operates locations in NC and SC.
The convenience stores occupy spaces of 2,000 sq.ft. in freestanding
facilities. Plans call for one opening
in the coming 18 months. Expansion will
take place in SC.
Rainbow
Marketers, Inc.
dba Rainbow
Marketers
Brad
Lemoine
PO Box
54045
Lafayette,
LA 70505
318-235-5098,
Fax 235-5067
Convenience
The
18-unit chain operates locations in LA.
The convenience stores occupy spaces of 2,000 sq.ft. in freestanding
facilities. Preferred locations are corner
lots. Plans call for three openings in
the coming 18 months. Expansion will
take place in the existing market.
Namco
Cybertainment, Inc.
dba
Aladdin's Castle, Cyber Station
Richard
Adams
877
Supreme Drive
Bensenville,
IL 60106
708-238-2202,
Fax 238-0560
Entertainment
The
343-unit chain operates locations nationwide.
The game rooms occupy spaces of 2,500 sq.ft. to 30,000 sq.ft. in
regional malls. Growth opportunities are
sought nationwide.
Gold
Coast Brewing
Tim Cox
c/o
Parker & Associates, Inc.
714-859-3116,
Fax 851-5168
Food
The
one-unit chain operates a location in
Huish
Family Fun Centers
dba
Bullwinkles Restaurants
Cort
Huish
33208
Paseo Cervesa/ Suite C
714-493-5222,
Fax 493-5298
Food
The
six-unit chain operates locations in CA and OR.
The restaurants, which also have family fun centers, occupy spaces of
10,000 sq.ft. to 25,000 sq.ft. in freestanding facilities and in-line spaces at
strip centers. Plans call for two
openings in the coming 18 months.
Expansion will take place in the western region.
Western
Bagel
Erik
Dahl
818-786-5847,
Fax 787-3221
Food
The
eight-unit chain operates locations in
Paul
Miller
Fax
416-3022
Furniture
The
38-unit chain operates locations nationwide.
The stores, selling upholstered leather furniture and furnishings,
occupy spaces of 7,000 sq.ft. in power and strip centers. Plans call for five openings in the coming 18
months. Expansion will take place nationwide.
Consumerhealth,
Inc.
dba
Newport Dental
Deborah
McCarthy
714-752-8522,
Fax 833-9172
Health
The
15-unit chain operates locations in CA.
The dental care units occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in
freestanding facilities and power centers.
Plans call for as many as six openings in the coming 18 months. Expansion will take place in the existing
market.
Quick
Weight Loss Centers, Inc.
dba
Quick Weight Loss
David
Vender
610-825-7494,
Fax 825-9294
Health
The
50-unit chain operates locations in CT, FL, NJ, NY and PA. The weight loss centers occupy spaces of
1,200 sq.ft. in strip centers. Preferred
anchors include supermarkets. Growth
opportunities are sought in NJ, PA and the metropolitan
Norfolk
Paint Company, Inc.
dba
Norfolk Paint Company
Nick
Wright
804-853-4371,
Fax 853-6838
The
eight-unit chain operates locations in VA.
The stores, selling paint, carpet, wall coverings and window treatments,
occupy spaces of 4,000 sq.ft. in freestanding facilities and strip
centers. Plans call for two openings in
the coming 18 months. Expansion will
take place in the existing market. The company
is seeking sites ranging in size from 4,500 sq.ft. to 5,000 sq.ft. in strip
centers or freestanding buildings with parking for 20 cars.
Wickes
Lumber Company
708-367-3400,
Fax 367-3765
Home
Improvement
The
128-unit chain operates locations in 24 states.
The home improvement stores occupy spaces of 53,300 sq.ft. in
freestanding facilities. Growth
opportunities are sought through acquisitions.
Daddy's
Junky Music Stores
Fred
Bramante
PO Box 1018
Salem, NH 03079
603-893-4057, Fax 893-3517
Music
The
13-unit chain operates locations in CT, MA, ME and NH. The music stores, selling musical
instruments, occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in strip
centers. Plans call for the opening of
four units in the coming 18 months.
Expansion will take place in the Northeastern region. Preferred demographics include a population
of 250,000 within 10 miles. Leases
running five years with options are typical.
Pet
Pourri, Inc.
dba Pet
Commissary
Joseph
Haddad
201-575-7379,
Fax 575-1449
Pet
Store
The
three-unit chain operates locations in NJ and PA. The pet stores occupy spaces of 2,000 sq.ft.
in freestanding facilities. Growth
opportunities are sought in NJ. The
company is looking for spaces between 4,000 sq.ft. and 7,000 sq.ft.
Worldwide
Shoes, Inc.
dba
Shoe Barn, Battaglia
Paul
Hanna
360
Miracle Mile
305-461-1193,
Fax 461-2995
Shoes
The
eight-unit chain operates locations in FL.
The stores, selling men's and women's shoes and accessories, occupy
spaces of 1,400 sq.ft. to 2,000 sq.ft. in regional malls, specialty and strip
centers. Plans call for two openings in
the coming 18 months. Expansion will
take place in the existing market.
Kidscource
Blair
Hyatt
407-995-8444,
Fax 995-0091
Specialty
The
three-unit chain operates locations in FL.
The stores, selling apparel, footwear, furniture, accessories,
educational material, crib and playpen toys, books, tapes, software, party
supplies and commodities for children infant through eight-year-old, occupy
spaces of 38,000 sq.ft. in power centers and regional malls. Plans call for as many as seven openings
during 1996 and as many as 10 openings annually thereafter. Expansion will take place in the Eastern
region.
Outdoors
Limited
Eugene
Spegar
412-439-2525,
Fax 439-7669
Sporting
Goods
The
two-unit chain operates locations in PA and WV.
The stores, selling outdoor sporting goods equipment, ski clothing and
limited summer casual wear, occupy spaces of 7,500 sq.ft. in freestanding
facilities. Growth opportunities are
sought in PA.
Randall
Stores, Inc.
dba
Cub, Country Markets
William
Bell
605-996-7511,
Fax 996-1167
Supermarket
The
32-unit chain operates locations in IA, IL, MN, WI, NE, KS and SD. The supermarkets occupy spaces of 50,000
sq.ft. to 70,000 sq.ft. in freestanding facilities and strip centers. Plans call for one opening in the coming 18
months. Expansion will take place in IA.
Smitty's
Super Valu, Inc.
dba
Smitty's
David
La Bau
602-801-1000,
Fax 801-9011
Supermarket
The
28-unit chain operates locations in AZ.
The supermarkets, which also offer pharmacy services, soft goods and
hard lines, occupy spaces of 105,000 sq.ft. in freestanding facilities and
strip centers. Plans call for three
openings in the coming 18 months.
Expansion will take place in the existing market. The company is looking for spaces of
approximately 70,000 sq.ft.
Liberty
Travel, Inc.
dba
Liberty Travel
Richard
E. David
69
Spring Street
201-934-3615,
Fax 934-3888
Travel
Agency
The
180-unit chain operates locations in NY, NJ, PA, DE, MA, CT, RI, NH and
FL. The stores, offering a full line of
travel services, occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in freestanding
facilities and end caps of strip centers.
Plans call for 15 openings in the coming 12 months. Expansion will take place throughout the
existing markets as well as western PA.
The
Musicland Group, Inc.
dba
Suncoast Motion Picture Company
Bruce
Bausman
612-932-7700,
Ext. 8052, Fax 931-8300
Video
The
406-unit chain operates locations nationwide.
The stores, selling videos, cassette tapes and compact discs, occupy
spaces of at least 2,500 sq.ft. in regional malls. Plans call for 50 openings in the coming 18
months. Expansion will take place nationwide.
Buyers
& Sellers of Commercial Properties
Hills
Department Stores is selling its 80,000 sq.ft. store at Kanawha Mall in
For more information, contact Don Orlando at
(412-378-0511, Ext. 321), Fax (378-4250).
Price
Associates has the listing to sell
For more information, contact Jim Ehrlich at
(312-641-1800), Fax (332-5820).
Ray
Wilkerson Companies, Inc. has the listing to sell Southpark in
For more information, contact Jeff Latimer at
(512-458-5993), Fax (458-1648).
Standard
Management Company is in the market to acquire shopping centers with asking
prices above $10 million and located in the Midwestern and West Coast
regions. Older projects and centers
drawing a blue collar customer will be considered. All cash transactions are possible.
For more information, contact Gary Goodman at
(310-410-2300, Ext. 314), Fax (410-2919).
SF
Properties, Inc. is in the market to acquire retail properties or land at well
located intersections in NC, NE and PA.
For more information, contact Gerald Cohen at
(617-277-0400, Ext. 112), Fax (277-7805).
Mariner
Capital Management, Inc. has the listing to sell
For more information, contact Lawrence A.
Raimondi at (941-437-0555, Ext. 110), Fax (481-8283).
MEPC
American Properties, Inc. plans to acquire the 1.4 million sq.ft. Regency
Square Mall in
For more information, contact David Gruber at
(214-980-5000).
Cohen
and Co., Inc. Real Estate represents clients in the market to purchase shopping
centers in
For more information, contact Helen Putterman
at (212-679-1222), Fax (679-1533).
LRA
Realty Advisors, Inc. represented First Washington Realty Trust, Inc. in its
purchase of
For more information, contact Robert Rush at
(215-957-1999), Fax (957-6570).
First
Atlantic Realty, Inc. has the listing to sell a 17,500 sq.ft. building in
For more information, contact First Atlantic
Realty, Inc. at (212-315-4444), Fax (315-5214).
David
Kaufman & Company will host an auction of
For more information, contact Joseph Griese
at (800-858-5700).
Harry
M. Green Interests, Inc. has the listing to sell a 71,634 sq.ft. shopping
center in
For more information, contact Clifton Love at
(713-771-7000), Fax (771-1513).
Horizon
Properties has the listing sell a 20,000 sq.ft. former Winn-Dixie in
For more information, contact Joel Benes at
(305-350-9944), Fax 371-2621).
RD
Capital, Inc. is in the market to acquire supermarket anchored shopping centers
in SMSA's with a population of at least 100,000.
For more information, contact Eric Newberg at
(212-421-8830), Fax (421-2290).
Allen
Fuller Co. Realtors has the listing to sell NNN leases of properties located in
FL, MA and TX. Leases are held by companies
listed on the NYSE and NASDAQ, are a minimum of 10 years and have a minimum 9%
cap. Some leases have a 10% cap with
increases. Asking prices begin at
$800,000. The company is the market to
acquire single tenant net leases and long term NNN leases of credit
tenants. Companies holding leases of
interest include Wal*Mart, Walgreens, Eckerd and Barnes & Noble.
For more information, contact David Mufson at
(305-532-0881), Fax (532-0882).
Peter
Schweitzer & Associates, Inc. is in the market to acquire retail properties
in FL. Preferred properties have GLAs
between 20,000 sq.ft. and 100,000 sq.ft., are well located and have upside
potential. Properties with vacancies
will be considered.
For more information, contact Peter J.
Schweitzer at (954-975-7553), Fax (975-7663).
Castle
Partners, Inc. is in the market to acquire stable income producing properties
and sites 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 or freestanding, single tenant net leased properties.
For more information, contact Andrew
Hirschberg at (908-719-0019), Fax (719-2888).
Cameron
Real Estate Services, Inc. has the listing to sell